Governor Indrajit: Where Is Promised “Press Notice” On Bond Scam “Forensic Audit”?
Amrit Muttukumaru
Sri Lanka’s apex monetary, financial and banking regulator – Central Bank of Sri Lanka (CBSL) in recent times particularly under the Governorship of Nivard Cabraal, Arjuna Mahendran and presently Dr. Indrajit Coomaraswamy has demonstrated to the world at large that the CBSL and hence the country does not have the will to fully implement the laws already in place (however inadequate) to combat money laundering.
On 11 January 2019 the CBSL in one of its rare responses on behalf of Governor Coomaraswamy promised to issue a “press notice in a few days” on the “forensic audits” carried out by CBSL “to implement recommendations of the Report of the Presidential Commission of Inquiry” on the Treasury Bond scam which is arguably the largest financial scam to have taken place in the post-independence history of Sri Lanka. It is now MORE THAN A MONTH and the country is still awaiting the “press notice”!
The rare CBSL response, a crude master class on PREVARICATION was subsequent to my article “Governor Indrajit & EU ‘Blacklist’ On Money Laundering” which related to the more than year old European Union (EU) ‘BLACKLIST’ placed on Sri Lanka for money laundering subsequent to the ‘Financial Action Task Force’ (FATF) placing the country on its ‘GREY LIST’ from November 2017. The FATF recommendations are “recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard.”
My said article published in the ‘Colombo Telegraph’ (CT) was of no interest to the mainstream print media as was the CT news item with the damning allegation “Massive Fraud At Sampath Bank”. It was alleged by the “victims” that CBSL “was in a deep slumber while Sampath Bank was siphoning off the customers’ money”. We are still to hear from the CBSL on this alleged “Massive Fraud”.
Not all the play on words by the CBSL in its evasive response in the ‘Colombo Telegraph’ “Central Bank Response To Muttukumaru’s Allegations Against CBSL Governor Dr. Indrajit Coomaraswamy” can undo the HUGE DAMAGE to the economy by Sri Lanka continuing to be on the EU ‘blacklist’.
Of what use is the CBSL “time bound action plan” when just LAST WEEK the EU REITERATED that Sri Lanka continued to be a “high-risk third country” for money laundering? No doubt FATF and EU are aware that the CBSL will not stand up and be counted in the face of there being
NO POLITICAL WILL to fully implement even existing laws.
Need we be surprised that the Foreign Direct Investments (FDIs) in recent times are tainted with controversy? It hardly needs comment that Chinese/Indian investments are for the most part based on geo-political considerations which are themselves controversial.
While Coomaraswamy who has been CBSL Governor since 3 July 2016 for 16 months PRIOR to this ruling (November 2017) must bear some responsibility (together with Messrs. Cabraal and Mahendran), he must bear MAJOR RESPONSIBILITY for the country CONTINUING to be on the ‘Blacklist’ for over a year.
Bond Scam
A key recommendation of the report of the Presidential Commission of Inquiry into the egregious Treasury Bond scam was the FORENSIC AUDIT to be carried out by the CBSL. The report was available in the public domain from 3 January 2018.
How long does it take for the CBSL to carry out its forensic audit? The CBSL which is the issuing agency for Treasury Bonds has to date not even QUANTIFIED the loss incurred by the State which is widely perceived to be huge. Even crucial issues of governance incidental to the bond scam thrown up by witnesses at the Presidential Commission which include possible tax evasion, money laundering and PEPs (Politically Exposed Persons) being directors of banks do not appear to be even on the radar.
