Bond Scam: Whitewashing Will Boomerang On ‘Yahapalanaya’ & Country
The alleged Treasury Bond scam is probably the largest financial scam to hit this country in its post-independence history. For sheer impunity and involvement of a wide spectrum of politicians in collusion with a section of the corporate sector and regulatory authorities it is hard to beat. The muted response of the opposition exemplifies the rot in the governance of this country. It is unforgivable it took place under a so-called ‘Yahapalanaya’ government which was elected with much hope under trying circumstances to usher in ‘good governance’ after the traumatic Rajapaksa years.
The expectations included holding those concerned under the Rajapaksa regime accountable for alleged (i) egregious corruption (ii) abuse of power (iii) violence to dissenters (iv) undermining democratic governance. Not only has the ‘Yahapalanaya’ government blatantly reneged on these undertakings – but worse is its own contribution to alleged corruption and abuse of power which in terms of sheer speed exceeds the Rajapaksa regime! For example, after being elected in January 2015 the first alleged bond scam took place February 2015.
This has given a shot in the arm for a Mahinda Rajapaksa led comeback. A Deputy Minister in a KEY ministry held by the PM who while in opposition was arguably the most virulent critic of alleged wrongdoing under the Rajapaksa presidency, has suddenly after almost 3 years found merit inGotabaya Rajapaksa’s “efforts in beautifying the City of Colombo”! Is this a sign of ‘coming colours’?
However, one notable gain under ‘Yahapalanaya’ must be flagged – its relative ‘openness’. This most likely is not due to altruistic reasons but compulsions of ‘Realpolitik’ in the hodgepodge arrangement that passes for governance. If it was genuine, why is their lack of transparency in most things – the alleged bond scam being a prime example?
Popular Imagination
The alleged Bond Scam has caught the popular imagination unlike no other scam in this country – and God knows there have been other egregious scams over the years. Even those who have not heard of ‘Bonds’ let alone ‘Treasury Bonds’ sense there has been TERRIBLE CORRUPTION involving the Central Bank of Sri Lanka. This is the reality which does not portend well not only for the ‘Yahapalanaya’ government but also for the country at large. As a consequence, if the already PERCEIVED notion of a MEGA ‘COVER-UP’ is CONFIRMED where its ‘KINGPINS’ are shielded and only some who have ‘FACILITATED’ it are exposed, it will create widespread disenchantment like no other and will further undermine the rule of law which already is in a pathetic state. Let us face it, when people get further confirmation that daylight looting of the public purse by high ups in the political, bureaucratic and corporate sectors is tolerated with such brazen impunity, is it reasonable for the masses to have respect for the rule of law? This may well be the tipping point. It is obvious that without the ‘rule of law’ there can never be any meaningful socio-economic development.
It must be flagged that the ‘rule of law’ is also undermined if there is no social stability as witnessed on a regular basis due to our collective inability to ensure social justice and ethnic and religious peace in the context of a multi-ethnic, multi-religious and multi-lingual country. In its absence it exacerbates intolerance as witnessed recently in Gintota and earlier in Aluthgama and the harassment meted out to the already traumatized Rohingya refugees who were in Sri Lanka merely on transit.
‘Core’ of the Alleged Bond Scam
At the CORE of the alleged Bond Scam is:
1) The Central Bank of Sri Lanka (CBSL), the issuing agency for Treasury Bonds which normally falls under the Ministry of Finance was brought under the purview of the Prime Minister.
2) ‘CONFLICT OF INTEREST’ arising from then Central Bank Governor Arjuna Mahendran’s son-in-law, Arjun Aloysius – owning/controlling PTL (Perpetual Treasuries Limited) – a Primary Dealer.
3) Arjuna Mahendran – a foreign national was HANDPICKED for the position of Governor, CBSL by the Prime Minister although he was aware of the ‘Conflict of interest’. The PM himself CONFIRMED this in his affidavit and while testifying before the Bond Commission (PCoI).
4) The PM continued to have Mahendran as CBSL Governor although he was aware that Mahendran had RENEGED on his ‘assurance’ to him that his son-in-law (Arjun Aloysius) will sever all links with PTL PRIOR to his appointment as CBSL Governor.
5) The PM robustly defended and endorsed Mahendran for a second term despite the widespread perception of Mahendran’s role in the alleged Bond Scam.
6) Sadly, the PM’s affirmation in his affidavit to the PCoI: “Upon the formation of the new Government in January 2015 there was a general consensus within the Government that Mr Mahendran should be appointed to the post of Governor of CBSL.” was NOT PURSUED by the PCoI.
7) Unlike in the case of the other witnesses, the PM was given questions in ADVANCE by the PCoI to enable him to provide answers by way of affidavit.
8) Unlike in the case of the other witnesses, the PCoI decided to invite the AG himself who wasn’t involved in the investigation up to that point to personally lead evidence for the FIRST TIME. Up to this time, Messrs. Dappula de Livera and Yasantha Kodagoda – Senior Additional Solicitor General and Additional Solicitor General respectively lead evidence.
9) Unlike in the case of the other witnesses which included former Finance Minister Ravi Karunanayake who were GRILLED by Messrs. Dappula de Livera and Yasantha Kodagoda, limited questions were posed to the PM. The PM was at the PCoI reportedly for less than an hour to clarify matters arising from his affidavit
To adapt what Lady Macbeth said: “All the perfumes of Arabia will not sweeten” these immutable FACTS.
