CAFFE petitions appeal Court: Disqualifiy Central Bank Governor
View(s):A petition was filed in Sri Lanka’s Appeal Court on Monday urging the judiciary to declare that Arjuna Mahendran is disqualified and not entitled to hold office as the Governor of the Central Bank, the court registrar’s office revealed. It was filed through a counsel representing Executive Director of Campaigns for Free and Fair Elections (CaFFE) Executive Director Keerthi Tennakoon, an official said. The petitioner in his petition stated that “there are serious allegations of corruption against Mr. Mahendran, in particular in the issuance of treasury bonds on 27.02.2015 claiming that on 27.02.2015, the Central Bank announced an auction of issuing 30 year treasury bonds for Rs. 1000 million.
Thereafter the Public Debt Department of the Central Bank contacted commercial banks and primary dealers over the phone canvassing bids for the above auction around the market rate of 9.35 per cent to 9.75 per cent range. At the auction Central Bank accepted bids for Rs. 1000 million at weighted average of 11.73 percent. However bids for Rs. 3000 million from the primary dealer Perpetual Treasuries Ltd, owned by the Respondent’s son in law was accepted at 12.50 per cent. Most of the other banks and the primary dealers bid at low rates below 11 per cent.
The activities of the said primary dealer Perpetual Treasuries Ltd, who successfully bid for Rs. 3000 million at 12.50 per cent and Rs.2000 million at around 12 per cent at the auction clearly indicates prior knowledge of impending monetary policy changes. The petition also states that the Governor is a public officer coming under the ambit of the Constitution of Sri Lanka whereas Mr. Mahendran is a Singapore citizen who doesn’t come under local laws. In these circumstances, the petitioner is entitled to a mandate in the nature of Writ of Quo Warranto declaring that the respondent is disqualified and/or not entitled to hold office as the Governor of the Central Bank of Sri Lanka. - (Bandula)