Finance Ministry launches full scale probe into gazette

The Finance Ministry has launched a full scale investigation into an Extraordinary Gazette Notification authorizing the issuing of treasury bonds in the past.

The Finance Ministry said that the Minister of Finance Ravi Karunanayake is in receipt of Extraordinary Gazette Notification No. 1895/19 dated 01 January 2015 issued by Mahinda Rajapaksaa, who was the Mistier of Finance and Planning at that time.

The gazette was revealed during evidence given by the Secretary to Ministry of Finance on 23 February 2017 to the Presidential Commission of Inquiry on Treasury bond issuance.

The gazette is a unique example of relevance of fraudulent management of public debt by Mahinda Rajapaksa, former Central Bank Governor Ajith Nivard Cabraal and his officers in the Central Bank, in violation of existing laws.

The gazette contains authorization given under section 4 of the Registered Stock and Securities Ordinance to raise loans during the year 2015 through the issuance of 31 Treasury bonds of different redemption periods at different interest rates at auctions as notified by the Registrar of Public Debt through newspapers.

The bonds stipulated in the gazette include many bonds issued in the past at various interest rates since 2011 as well as new bonds. There is no indication as to how bonds already issued in the past were issued again in 2015. It appears that the gazette authorizes the past bonds also, the Finance Ministry said.

As per the gazette, loans will be raised through the bonds within a sum of Rupees one thousand seven hundred and eighty billion authorized in the Appropriation Act, No. 41 of 2014.

The practice that has been followed in the past by the Central Bank is to issue the gazette back-dated as January 1 each year after issuing all bonds during the year in a hidden attempt to comply with the requirement of the Section 4 of the Registered Stock and Securities Ordinance while mismanaging bond issuances.

“When issuing the gazette, the required protocol has not been followed. With regard to issuance of a gazette by any Minister, the relevant institution should send the draft to the Secretary of the line Ministry. The Secretary then obtains the legal and technical clearance from the relevant officials in the Ministry and submits the gazette for the signature of the Minister. Only after the Minister’s signature can the gazette be sent to the Government Printer to be published,” the Finance Ministry said.

The Finance Ministry says the Central Bank has not followed the procedure on the gazette in the recent past. Instead, the Superintendent of the Public Debt Department has directly sent it to the Government Printer after obtaining legal clearance from Central Bank lawyers.

“Information is available that the gazette dated 1 January 2016 to be published by the name of Ravi Karunanayake, Minister of Finance, for the year 2016 also has already been sent to the Government Printer the same way in 2017. The publication of this gazette was immediately withheld,” the Finance Ministry said.

As such, all treasury bonds have been issued in violation of the provisions of the Registered Stock and Securities Ordinance.

“This is how the Central Bank officers, so called experts and professionals, mismanaged public debt to facilitate the Mahinda Rajapaksa Government and Ajith Nivaard Cabral through questionable private placements of bonds. In such gazettes issued in the past, all private placements were also legalized as issuance at auctions announced by the Registrar of Pubic Debt,” the Finance Ministry added.

The Finance Ministry said that a full report will be issued to the media following a full investigation and corrective measures will be taken immediately. Appropriate legal action will be taken against those errant officers under the provisions of the Registered Stock and Securities Ordinance. (Colombo Gazette)

1 COMMENT

  1. Bond issuance by CB it turn out that the question Bond scam by MOF is not governing malice at all but of the facts that the policy of Bond adopted by leaders of governing of “good governess” of UNP led Ranil.. W.CBK and MS . of coalition has its own logic.

    I just think our country what a madhouse this is?
    The nation is on the rock and the people are on the verge of famine and disaster there is shortage of rice ,insufficient foreign currency ,lack of payment of Monthly wages of Govt. servants and private sectors that millions of employees .

    The mounting economic catastrophe island is drawing even nearer by mismanaging of by MS CBK and Ranil W..of compromise governances.

    That this logic of corruptions to strengthening of most pro-corruption forces in and outside the Sri lanka.

    Those facts of Bond scam can only be countered by ACTION which would ACTULLY mark a break with policy AND legal BATTLE continuation of against current govt. WAR ON CORRUPTIONS.

    Ongoing current these circumstances, all those promised by MOF of Ravi R…will serve as a means of lulling PEOPLE.

    In fact LULLING the public with high sounding statement by Ravi K and MOH instead of waging corruptions by UNP regime ,this is real answer to growth of the anti-democratic forces due to in all-round of an OFFENSIVE.

    The Bond of CB scam here then is the invisible hand made visible. Needless to say the cunning mechanism of Bond issues of the “compromised government” ,with its near -SLFP ministers and CBK & MS are protectors.

    We have to assume that now that RAVI .K and Primer has so clumsily let cat out of bag, by we want law should be prohibiting the sale and purchase the CB Bonds will last be passed by Parliamentary majority.

    The point is that this striking example should make clear to ALL OF US, and help the public understand ,HOW and WHY public THAT BOND SCAM were deceived?

    In the terms of common senses of the facts of Bonds IS INCONTROVERTIBLE AND INDUBITABLE; the public have deceived by not fulfilling immediately, what United Opposition had promised to fulfil immediately at next elected Parliament .

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