UNP says bigger crisis is EPF investments, NSB-TFC deal is peanuts

Noting that the NSB-TFC deal is peanuts, the main Opposition UNP yesterday declared that the bigger problem was questionable investments by the EPF and demanded immediate answers from a 'dodgy' Government.

Following is the full text of the statement issued yesterday by UNP MP and its spokesman on economic matters Dr. Harsha De Silva:

Article 148 of the Constitution of Sri Lanka gives the Parliament total control of all public finances. As the main opposition, it is our duty therefore to ensure that individuals, however powerful they may be, do not abuse their power in managing public finances. It is precisely in this spirit that the UNP was the first to bring to the attention of the Government and the people the fraudulent transaction that the NSB entered into with the loss-making The Finance Company as NSB is the only bank with a full Government guarantee on every cent deposited and the interest earned thereon on every one of the 16.7 million accounts as a charge on the Consolidated Fund.

However, the NSB fraud is peanuts. The UNP has been questioning the Government on the alleged fraudulent transactions involving the Central Bank-managed EPF in the Colombo Stock Exchange for the last two years. As a matter of fact, the EPF has not appeared at the Public Accounts Committee of Parliament since 2006 to provide answers to multiple audit and other queries. The callous disregard for the law, let alone good governance, can no longer be tolerated.

It is in this context that we note with absolute displeasure the Government, once again, requesting for time to answer a simple set of questions originally submitted on 28 October 2011. In public interest following is this set of straight forward questions that the Government did not have the spine to answer even on 10 May 2012:



Hon. (Dr.) Harsha de Silva: To ask the Minister of Finance and Planning

(a) Is he aware that the management activity of the Employees Provident Fund (EPF) is undertaken by the Monetary Board of the Central Bank of Sri Lanka?

(b) Will he state whether:

(i) The fund management of the EPF is conducted at the direction of the Investment Committee in accordance with the Investment Policy Statement with the approval of the Monetary Board;

(ii) The Investment Committee meets on a regular basis to evaluate the investment proposals presented by the Fund Management Division of the EPF Department;

(iii) The investment decisions are made according to the investment policy of the EPF; and

(iv) The minutes of the meetings of Investment Committee for the last two years are tabled?

(c) Will he state pertaining to the Investment Committee for the last two years:

(i) The names and the date of appointments of all members; and

(ii) The dates the meetings were held along with members present

(d) If not, why not?