AG May Seek More Details On Bond Scam

by Hafsa Sabry

The Attorney General (AG) may seek more details before making his recommendations on the recent report by the Committee on Public Enterprises (COPE) on the Central Bank bond scam.

Attorney General Jayantha Jayasuriya told The Sunday Leader the report is being carefully studied but it does not have a fixed date to be finalized the recommendations.

He says the process involving his department will take place separately and independently from the parliament process, which will take its own course, on the alleged scam.

“After going through all the recommendations, observations and findings in the COPE report on the Central Bank treasury bond issue, the AG’s Department will then see what steps should be taken and what further material it needs to consider providing necessary advices to the authorities who seek our advice,” Jayasuriya said.

COPE Chairman Sunil Handunnetti told The Sunday Leader that all officials linked to the corruption should be investigated impartially.

 

A debate date

 

“Now that the report has been submitted to parliament and the duty of the COPE committee in presenting the report is done, it is the duty of parliament and the Speaker to announce a date for a debate since the report had already created arguments in Parliament as several opinions have been expressed during the last few weeks. In the Parliament debate, more information is expected to be discussed,” Handunnetti said.

After the AG report is submitted, parliament will discuss the next step. The COPE report was however finalised with much debate and divisions in the committee.

“We are not the judiciary and our duty is to investigate the State institutions and to submit the report with recommendations but not to charge them with crime. The government and the courts have to do the rest,” Handunnetti further stated.

 

Stern legal action

 

Handunnetti stressed that the government has a responsibility on the COPE report as such incidents should be stopped from reoccurring in the future, and therefore stern legal action should be taken against the corrupt officials under the existing laws.

The Tender Committee, the Treasury Board, and the Auction Board are responsible for the loss incurred.

 

Impartial investigation

 

“Just because the governor comes up with a decision, can all the other boards violate the auction procedures and the transparency of the transactions? This is not just buying a coconut and selling rice to the retail businessmen. All the profit had gone to the private company and the interest rate of the country is vastly effected; hence all the officers and the company which are relatively the cause of the huge loss for the government should be impartially investigated and should be brought to book. The existing laws are completely adequate to take legal action against the culprits and to reimburse the money,” Handunnetti stressed.

The COPE committee has submitted reports from January to April on how 19 State institutions including the CEB, Sri Lankan Airlines, Rakna Lanka and Avant-Garde have misused public.

“No one wanted a presidential commission to investigate those financial corruptions but why do they want a different commission particularly to investigate this scam? This itself points out something fishy in there with the higher rank politicians who are trying to safeguard the former Governor,” Handunetti said.

“Some COPE members attempted to submit a spare report on the bond issue and this led to a rift in the committee.

“They said they will submit another report but had to hide behind this report. What they did in the footnotes is to hide behind the report. Now the country knows what had happened to the report and how the corruption had taken place. The report will also reveal the people who save the corrupt and people who want to punish the corrupt,” Handunnetti said.

The existing laws do not pave the way for COPE to investigate the private companies, so the government has to take measures to intervene and investigate if those companies are linked to the scam.

Meanwhile, the Transparency International Sri Lanka (TISL) said it is encouraged by COPE issuing a unanimous report on the Central Bank bond controversy, following days of conflicting and contradictory statements. The report has now been forwarded to the Attorney General for his opinion.

 

Need for timely process

 

The TISL called on the Attorney General to ensure that his opinion and any related decisions are taken in light of the need to ensure justice and fairness, with the need for timely process. The TISL notes with concern past criticisms levelled against the Attorney General’s Department in their untimely handling of cases, supporting the adage that justice delayed is justice denied.

In providing its opinion, the TISL urged the Attorney General to ensure that his actions are commensurate to the high level of integrity and public trust placed in the Attorney General’s Department.

Furthermore, the TISL recommends that the government strengthens its processes to prevent alleged abuses of conflict of interest from reoccurring.

At a special meeting held last month, the Monetary Board of the bank, considered an interim report on the operations of primary dealers, including their financial performance during the year ended March 31, 2016 as well as the five month period ended August 31, 2016. It noted with concern the sharp disparity in the performance of primary dealers, as well as certain issues related to the pattern of trading activities.

In this connection, the Monetary Board instructed expeditious completion of the ongoing process of preparation of the relevant On-Site Examination Reports. This would enable the Monetary Board to make an early determination on the future course of action.