Treasury Chief responds to NSB-TFC deal controversies

Treasury Secretary Dr. P.B. Jayasundera yesterday insisted that he was not involved in the controversial NSB-TFC deal and that he had advised top office holders to work according to accepted procedure.

Dr. Jayasundera was reluctant to criticise anyone, insisting that former NSB Chairman Pradeep Kariyawasam had only noted “unfair criticism” as the reason for his decision to resign.  He insisted that no new names for the chairman and the Board of Directors had been put forward and insisted that the Post Master General would oversee the bank until selections are made.

“We must have confidence in the investigation. The issue is before Parliament and I am sure that a satisfactory end will be brought about by the officials,” he stressed, responding to numerous questions from the media.

A range of suggestions, including setting up good governance parameters as well as limiting the types of investment by banks, have been put forward, Dr. Jayasundera said, but he declined to state whether these measures would actually be implemented.

However, the Secretary did mention that he would soon send out instructions to banks on setting up credit committees that would “reduce hiccups” in future investments.