UNP to appoint committee to study bond report

By Himal Kotelawala

The United National Party (UNP) Working Committee is to appoint a three-member committee to study the report submitted by the Presidential Commission of Inquiry into the controversial bond issuance, UNP General Secretary and Minister of Public Enterprise Development Kabir Hashim said yesterday.

“We will appoint a three-member committee to study the report in full when we obtain a copy. If any politician from our side is found to be connected, we won’t hesitate to take strict action against them,” Hashim told journalists at the party headquarters at Sirikotha.

Citing unnamed sources, the Minister claimed that the report has not directly implicated the UNP in the Treasury bond scam, despite allegations to the contrary.

“People are coming up with different figures to calculate the deemed loss to the State. Those who famously said a family can get by with Rs. 2,500 a month are referring to huge numbers. But the report only referred to a ‘deemed’ loss - that is, a potential loss - of up to Rs. 11 billion. More than a loss to the State, it’s an undue profit to Perpetual Treasuries, as far as we know,” he said.

According to the statement recently read out by President Maithripala Sirisena, however, while it is true that Perpetual Treasuries Ltd. (PTL) had made undue profits to the tune of Rs. 11.145 billion in the secondary market, the alleged scam had also resulted in losses of over Rs. 8.5 billion to the State.

Quoting the report, the President said the Commission had cleared Prime Minister Ranil Wickremesinghe of any impropriety with respect to the appointment of former Central Bank Governor Arjuna Mahendran, but noted that former Finance Minister Ravi Karunanayake had given false evidence at the Commission.

Minister Hashim recalled that the Prime Minister had appointed the Pitipana Committee to investigate the matter as soon as it had come to light, the report of which was subsequently submitted to the Attorney General. The second COPE inquiry followed, chaired by an Opposition MP, he said, when it could just as easily have been overseen by one of their own, with a conclusion more favourable to the UNP. This report too was instructed by the PM to be sent to the AG, he said.

“Then the Presidential Commission came. The report is now out. That report too will be sent to the AG, just like we did.”

“Last year the Prime Minister directed to freeze all assets of PTL. Now Rs. 12 billion has been frozen in their accounts. The procedure to claim back those sums of money is contained in the report, we’re told. Hence, no loss to the country. From what we know, there are no allegations against the UNP,” the Minister reiterated.

The Attorney General was directed yesterday to expedite the freezing of assets of PTL, its parent company’s other subsidiaries and any other parties that made undue profits in the bond saga.

Speaking to the Daily FT on the sidelines of the press conference, Hashim said the reference to Karunanayake in the report as read out by the President was not with regard to the bond auction but rather a private affair concerning an apartment deal. However, in the event that any UNPer was convicted in court, the party would take disciplinary action as required, he said.