Cabraal drawing pension when millions are near starvation

The nation now in shambles salutes two great personalities, Dr. Indrajit Coomaraswamy and Sunil Mendis, eminently suitable men who functioned as Governors of the Central Bank, for rejecting pensions offered by a man who contributed immensely to the destruction of our economy. They performed admirably and were respected by the staff and the public.

The duo were aware from the time of the creation of the Central Bank that all Governors were on contract and no pensions were payable. However Ajith Nivard Cabraal created a scheme to benefit himself and another not after success but after total destruction of the economy. Cabraal’s decision to accept the pension comes amidst millions of Lankans who are suffering from near starvation.

In the early part of the year I read a letter from a reader with an appropriate caption relating to Cabraal. It was so comprehensive that I retained a copy for record and it read as follows: “There is no pillow as soft as clear conscience” after it was reported that he had pressured the then President to approve a pension for his first term in 2005.

The writer correctly stated that Cabraal should have guided a clueless vain man and stopped him from borrowing at high rates of interest for projects without technical evaluation where such investments would provide a return on investment.

He failed because he had no knowledge of the implications and also how such vanity projects will impact the country. He responded and did what a mediocre public servant would have done for survival, having got a job that gave him prominence from obscurity which was not based on suitability.

The latest revelation is that Rs. 280 billion obtained on loans during that period is not reflected in any government financial statements. Who were the beneficiaries?

That only a few politicians have a conscience is widely known and the plight of the country today can be largely attributed to the unbridled corruption having taken huge loans with the support of Cabraal as the Governor. 

The Governor of the Central Bank was expected to keep politicians informed of the state of the economy, to take correct decisions mindful that a wrong move would have far reaching consequences that would ruin the country. Politicians need professional guidance and the Central Bank had a very important role to play for a country to progress and that was what John Exter bequeathed to the country having created this all important institution which functioned without political meddling till 2005.

The writer mentioned that Cabraal had a meteoric rise from a position of an accountant to head this vital institution which was occupied by erudite men before who received accolades from politicians like Dr. N.M. Perera and Ronnie de Mel.

Adverting to the caption of the writer, Cabraal should share much of the blame for the plight of the country today as the foundation for decline commenced in 2005, hence he has no moral right to draw a pension for his first term as a pension was never paid to Governors who were on contract.

After two from the trio vacated, Cabraal presented himself to the family as the wizard who could turn things round. Since they were in dire straits they clung on to Cabraal for survival. He claimed that he had a magic formula to correct the total breakdown and steadfastly rejected advice from capable men on the imperative need to reach the IMF. He rejected the advice of senior economists and used $ 500 million to settle individuals. To the best of my recollection, though many called for details in respect of this lavish unilateral disbursement of hard to come by funds, he did not provide the information.

He convinced the ignorant that he had a road map and a plot where his special manure could be used to resurrect the economy which was on life support, tailored a new emoluments package which included a pension and a position of Cabinet rank, resigned from Parliament, got back to the hot seat and made matters worse. Can he with a conscience draw a pension when no such provision was there from the inception of the Central Bank?

It’s common knowledge that the economy was on a tailspin and he was forced to leave and the most technically sound person who retired was invited to be the Governor. The clueless politicians who lined their pockets at the expense of the people ably supported by the types like Cabraal are living in clover still bleeding the poor.

The media must be commended for this exposure where a crafty opportunist stooged ignorant politicians and brought misery to millions. He must refund the ill-gotten money so that the Central Bank can fund to obtain medicines to hospitals, fuel for power and industries, fertiliser to farmers and basic food items to the people with emphasis to prevent children being stunted due to malnutrition.

I sincerely hope the unions, civil society which includes clergy of all faiths, retired officers of all grades of the Central Bank and the much respected senior staff of the Central Bank will clamour for the refund of millions paid which is highway robbery thanks to political patronage.

I earnestly appeal to the President who today is in the vanguard to resuscitate the economy to step in and stop this plunder of hard to come by rupees.

Ashley de Silva 

Colombo