SLFP wants probe on 16 primary dealers

By Chamodi Gunawardana

Adding yet another twist to the alleged bond scam, the Sri Lanka Freedom Party (SLFP) yesterday called on the Government to conduct a separate investigation into the bids of 16 primary dealers at a bond auction held in February 2015. 

The party also repeated its previous calls to investigate the conduct of former Central Bank Governor Arjuna Mahendran during his time in office.

Speaking at the SLFP’s weekly media briefing, Sports Minister Dayasiri Jayasekara, who is a member of Committee On Public Enterprises (COPE), said the investigation should not be limited to the alleged Treasury bond scam but should cover all transactions between the Central Bank and primary dealers.

“This time COPE has only conducted an investigation into the bond issue that has come under scrutiny but the next time the probe could be conducted into the rest of the transactions of primary dealers,” he said.

Jayasekara added that COPE should investigate ex-Governors and allegations of their corrupt practices in order to ensure that the transparency of the Central Bank was maintained.

“According to the past records of the Central Bank, a number of corrupt deals have taken place during the tenures of past Governors as well. That is what COPE has found. In Arjuna Mahendran’s case it has been easier due to the father-in-law and son-in-law relationship,” he claimed. 

Commenting on the extraordinary profits gained by Perpetual Treasuries, Jayasekara said that while the other 15 primary dealers had made a 31% profit through the mentioned bond issuance, Perpetual Treasuries had recorded a 1853% profit through the deal. 

“That company has made a higher profit than even a stable commercial bank. The COPE report will reveal how this happened,” he said.

Backing the Joint Opposition and the Janatha Vimukthi Peramuna’s call to appoint an independent Presidential Commission to further investigate alleged bonds scams, Minister Susil Premajayantha said the Government should use whatever suitable mechanism to address the issue and re-establish the credibility of the Central Bank.