| UNP concerned about
the economy
By Duruthu Edirimuni
A UNP parliamentarian rejected claims that the
main opposition party was seemingly unconcerned about the economic
crisis in the country particularly after signing a MoU with the
government.
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| Bandula Gunawardene |
Bandula Gunawardene said the MoU doesn’t
address the economic situation. “As the main opposition, the
UNP entered the MOU to address the North- East issue.
The economic issues in the country have not been
addressed, but there is a paragraph about good governance and it
is completely untrue that we do not care about the economy, because
we consistently and constantly show the drawbacks,” he said
in an interview with The Sunday Times FT.
Gunawardena said that he has written to the President
in detail and submitted documents personally, but nothing has been
done so far, because the latter takes advice from officials like
Dr. P.B. Jayasundera.
He said the economic policy framework, which was
included in the MOU by the UNP was rejected by President Mahinda
Rajapaksa. “This is because he did not want to upset the JVP,”
Gunawardena added. On the UNP’s position in the forthcoming
budget, he said that the UNP is unlikely to participate in the forthcoming
budget and that this too will collapse.
“This budget will collapse like the previous
one, because last month the government managed to pass a supplementary
budget of Rs.109 billion which in effect says that wrong figures
have been incorporated in the last budget and that it was a failure,”
he explained.
He said that during the party convention next
Sunday, the UNP will pass a proposal to discipline the ‘inefficiency
of the parliament’ and broaden its responsibility. “The
Finance Ministry Secretary is pulling wool over everybody’s
eyes including the President.
When we take steps to strengthen the parliament,
such ‘stubborn’ officials like Jayasundera will not
be able to manoeuver their personal agendas,” he said.
He said the government has not been able to hold
the exchange rate, discipline the banking sector and the whole economy
at large.
“From the 1st to 9th September this year,
US$ 121 million was sold from foreign reserves to keep the US$ at
Rs.102. In 2003, the treasury bills amounted to Rs.11.6 billion.
In 2004 it was at Rs.73.9 billion, clearly saying that the Central
Bank had printed money,” he said.
He also said that the most number of VAT scams
happened during 2004. “This was not when we were in power.
There is no proper, transparent accounting system to support VAT
collection. When the government claims VAT input, there is no proper
mechanism,” Gunawardena explained. “There is an urgent
need to freeze the VAT temporary for two to three years and introduce
the business turnover tax (BTT), he added.
Eager to ‘interrogate’ Cabraal
UNP Colombo District MP, Bandula Gunawardena
is looking forward and says he’s highly excited about
‘interrogating’ Central Bank Governor Nivaard
Cabraal on his ‘suitability’ to hold the esteemed
position together with a Select Committee that is due to be
appointed after the budget.
“In our history, no one who has been
directly involved in politics has been appointed as a Central
Bank governor.
This is a highly esteemed position and there
are many in this country who are suitable, for this position
other than Mr. Nivaard Cabraal,” he said.
Gunawardena’s main allegation against
Cabraal was his decision to disband the Special Investigation
Unit (SIU) and ‘disrupt the investigations the unit
was carrying out on the controversial multi level marketing
company, GoldQuest – to which he is alleged linked to.
“We strongly believe that the SIU had done its duties
properly that is the reason why it was disbanded,” he
said, adding that according to information the UNP has received
from sources overseas, Cabraal is ‘highly connected’
to GoldQuest. “We will address this when the select
committee convenes,” he added.
Special Investigation Unit now under CB Governor
The Central Bank last week explained a process
of rationalisation of administration and re-allocation of
functions including investigations into prohibited schemes.
Responding to newspaper reports about doubts
whether the bank would proceed with investigations like the
one on the Goldquest scam, the regulator said the Monetary
Board has made several changes in the allocation of responsibilities
and duties.
Accordingly, several departments/units which
were hitherto reporting to the two Deputy Governors were placed
under the responsibility of the Governor while the departments
pertaining to Economic and Price Stability and the departments
pertaining to Financial System Stability were placed under
the responsibility of the two Deputy Governors, respectively.
Amongst the departments and units placed under the responsibility
of the Governor was the Special Investigations Unit (SIU),
which had been set up in 2005 to undertake special investigations
into alleged violations of laws relating to, and administered
by, the Central Bank, the statement.
“Arising from such rationalization,
it was noted that there would now be additional time available
for the Deputy Governors to devote to the core functions entrusted
to them. Hence, it was also noted that they would be able
to more closely monitor and direct the Assistant Governors
and Heads of Department and ensure that all work to be carried
out by such departments, including investigations, are carried
out effectively,” it said.
The statement said that until such time
permanent arrangements are made with Board approval, the SIU
be instructed to carry out urgent and on-going matters only.
Investigations initiated and Court cases already filed by
the SIU, are being handled by the various departments in the
Central Bank in close coordination with the Attorney General
and the Police. In addition, several officers previously attached
to the SIU, continue to handle these cases and investigations
in the interest of reaching a successful and speedy completion,
it said.
The Bank reiterated that the rationalization
of the administration structure of the Central Bank has in
no way jeopardized any investigation, nor has it diluted its
commitment to effectively deal with unauthorized deposit soliciting
or multi-level marketing or pyramid operations. It said the
Bank has recently initiated action to deal with a new multi-level,
web-based ponzi scheme as well.
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