Central Bank circus
View(s):Newspapers are carrying a picture of Central Bank Governor Arjuna Mahendran happily handing over a report to the Finance Minister. Beats me how he can function like that when the Opposition has handed over a motion to remove him, there is a case against him in the Supreme Court and he was reported to the Bribery Commission.
Could the Governor answer these questions please?
a) Names of the Public Debt Department (PDD) officials who increased borrowing from Rs. 1 billion to Rs. 10 billion?
b) What action has been taken against these persons?
c) On whose instructions was the bond issue increased?
d) Why was the bond issue awarded to the highest bidder who quoted 12 per cent?
e) Who are the owners of Perpetual Treasuries and why did it suddenly change hands (to Ishara Nanayakkara and Co)?
f) Has Perpetual done business with the Bank of Ceylon (BOC) before? Who authorised a credit line of Rs. 10 billion from BOC?
g) Who leaked information to Perpetual?
h) What is the rationale for a 30 year bond at 12 per cent when the government was only for 100 days and money could have been borrowed at 10 per cent or below, causing a huge loss to the tax payer?
i) What is the responsibility of the Governor on a bond issue?
Priyantha Wass
Colombo