SJB calls on IMF to get strict on anti-corruption laws

SJB MP Kabir Hashim 

SJB MP Dr. Harsha De Silva

SJB MP Eran Wickramaratne

•  Points to collusion between Hamilton Reserve Bank and ex-CBSL Governor for gains
•  Says lack of Presidential inquiry disappointing when IMF has pointed to corruption in SL
•  Insists independent body must manage EPF to ensure sustainability  

By Darshana Abayasingha 

The main opposition, Samagi Jana Balavegaya (SJB), yesterday renewed its call for a comprehensive investigation into purchases of Treasury Bonds leading up to the financial crisis that bankrupted the country. 

SJB MP Kabir Hashim, called on President Ranil Wickremesinghe to appoint a presidential commission to probe charges of corruption and insider dealing that plunged the country further into a mire.

Hashim noted that reports published by the UN Human Rights Council too had pointed to grave economic and financial crimes taking place on the island. In this light, Hashim stressed it is imperative to implement the Anti-Corruption Bill, and added his party would urge the IMF to insist upon its implementation.

"There are hundreds of investors in Sri Lankan bonds, but only the Hamilton Reserve Bank has filed action against the debt restructuring process. Links between top executives of the bank and former Sri Lankan Central Bank Governor, Ajith Nivard Cabraal, has been established, and it is reported that Cabraal had pledged full payments to the Hamilton Reserve Bank. 

The CBSL paid USD 500 million to Hamilton Reserve Bank when the country was in the throes of a foreign reserve crisis," Hashim stated.

The SJB lamented that despite assurances provided earlier that a presidential commission of inquiry would be appointed into the matter, this is yet to happen.Joining the discussion, SJB Colombo district MP Eran Wickramaratne, stressed on the need to appoint an independent judiciary and commission to probe bribery and corruption, plus, an independent body to manage the Employees Provident Fund.

 Wickramaratne, too, urged the IMF to ensure Sri Lankan authorities strengthen efforts to combat corruption, enhance governance, transparency and ensure justice and equity.

"There is a need for an office to independently investigate and file cases, as the Attorney General's department is a state institution. The EPF is managed by the Central Bank, but the EPF fund belongs to the public. The government says it must borrow at cheap rates and keeps taking loans off the EPF and there is little accountability. Accordingly, it is evident the fund needs independent management," the SJB MP said.

The MPs charged that the "Rajapaksa government" was restricting attempts by the COPE and COPA committees in parliament to pressure the Attorney General's Department and the bribery commission to probe allegations of corruption.

SJB MP Dr. Harsha De Silva, noted: "The Hamilton Reserve Bank had said it met with Cabraal and heads of state banks in Sri Lanka. It appears there is a pyramid scheme functioning with the Hamilton Reserve Bank. It seems they have invested other people's funds in Sri Lanka, not their own funds, and its depositors have now raised questions why they invested in a failing economy. The IMF has said that this is the first time a country had waited till its reserves were completely drained before it sought assistance from the fund. Sri Lanka's representative to Geneva had recently dismissed charges brought by the UNHCR against economic terrorists in Sri Lanka. How can she do that when the IMF has clearly stated that Sri Lanka is a hot spot for corruption and malpractices, and has demanded concrete action in this regard for future engagement."

– Pix by Lasantha Kumara