Treasury Bond scam:

COPE at loggerheads

Tuesday's (July 05) Parliamentary watchdog committee, COPE meeting turned hot and arguments ensued as UNP members trying to exonerate former Central Bank Governor Arjuna Mahendran from the Treasury bond scandal while other members opposing it.

The UNP members in the COPE maintained that they could not accept the Auditor General's report on the issue and the report should be referred to independent experts for their opinion.

Bond sales

The JVP members in the COPE had counter argued and demanded to know from which office the policy decision had been made. They also pointed out that such a policy decision should be approved by the Monetary Board and there was no such approval but only Mahendran's instructions to go for private placements in bond sales.

Auditor General Gamini Wijesinghe and two other senior members of the Auditor General Department presented to the COPE their findings of the investigation on treasury bond sale scandal.

The UNP members in the COPE who attended a meeting held by Prime Minister Ranil Wickremesinghe on the previous day on the same issue had argued that Mahendran was not responsible for the massive loss on the treasury bond sale since Mahendran was only implementing a policy decision of the Government. The UNP MPs had demanded that independent economic experts should be summoned to the COPE and they be given ample time to express their opinion on the AG's report. However, the JVP MPs in the COPE had protested that if the UNP MPs needed expert opinion they could wait till top economists of the Central Bank meet the COPE on July 07 on the same issue and get the expert opinion from them. The JVP MPs accused the UNP MPs in the COPE of attempting to delay the COPE process deliberately and willfully.

Meanwhile, Speaker Karu Jayasuriya will take a final decision on the Auditor General's report on Treasury Bond scandal after a meeting Attorney General, Auditor General and incumbent Central Bank Governor. The Speaker who responded to a query raised by the Chief Opposition Whip Anura Kumara Dissanayake told the House that he had already discussed the matter with COPE Chairman and JVP MP Sunil Handunnetti and added that he received a complete report of the Auditor General's investigation into the bond scandal and each member of the COPE had been given a copy of the summarised version of the report. He said that secrecy of the contents of the report would be maintained so as not to disrupt the ongoing investigation into the bond scandle. MP Dissanayke demanded to know what action would the Speaker be taken with regard to the findings of the Auditor General.

Communication

The Government and the Opposition lawmakers after extensive arguments on the issue of ensuring the people's rights through the constitutional provisions finally agreed to refer the matter to the Speaker. A fresh battle between the judiciary and the legislature is now in the offing as the Speaker is poised to give a ruling on the ratification of the first Optional Protocol to the International Covenant on Civil and Political Rights (ICCPR) in Sri Lanka.

However, Prime Minister Ranil Wickremesinghe assured the House that the Government reconfirms the continued validity and applicability of the Optional Protocol to the ICCPR and is firmly committed to implement its provisions.

UNP Parliamentarian M.H.M. Salman raising a question pointed out Sri Lanka had acceded to first ICCPR in 1997 and added that the same year the then President said the Sri Lankan Government recognised the competence of human rights committee to receive and consider communication from Sri Lankan citizens. MP Salman was of the view that assurances of the Yahapalanaya must include a minimum response to communications that are brought to the attention of Sri Lanka by the Human Rights Committee in terms of the Protocol. He said it appeared that the Government is neither responding to communications brought to its attention by Human Rights Committee nor taking action on views expressed by the Committee. Deputy Speaker Thilanga Sumathipala promised that he would bring the matter to the notice of the Speaker.

Responding to the issue, Prime Minister Ranil Wickremesinghe told the House that good governance, rule of law, human rights, transparency, and accountability remain the cornerstone of the National Unity Government's policy and vision.

The Premier said in keeping with this policy and vision, the Government advises the Office of the High Commission for Human Rights of continued participation in the communications procedure of the UN Human Rights Committee. Joint Opposition Leader MP Dinesh Gunawardena said the Prime Minister expressed an opinion and requested the Chair to give a ruling on a very important judgement on the Constitution of Sri Lanka which has been delivered by the Supreme Court. MP Gunawardena demanded a debate on what the Premier told the House before the Speaker give a ruling on it as the issue is very serious.

Consultaions

The Premier said the Speaker should give a ruling only after the necessary consultations.

Responding to a query raised by UNP Parliamentarian Nalin Bandara, the Prime Minister told the House that he would instruct police to investigate whether there had been any fraud in purchase of two ships of the bulk category. He demanded to know the purchasing price of those ships and the purpose for which such ships were to be used.

The MP pointed out that at a time when shipping industry in the world had collapsed, steps were taken by the former Government to purchase two ships namely Ceylon Breeze and Ceylon Princess at a huge cost.

The Prime Minister said that the two ships had been bought over for the Ceylon Shipping Corporation at a price of US$ 35 million each. He said that relevant authorities have been instructed to decide whether the two ships would be upgraded and used or sold out. The purchase resulted in a loss of 30 million US dollars.

Chief Opposition Whip and JVP Leader Anura Kumara Dissanayake on Friday stressed the need to establish a special court to expedite the cases of fraud and corruption. Participating in the debate on Order Under Mutual Assistance in Criminal Matters Act and the Mediation Board (Amendment) Bill, Dissanayake said establishing a special court for this purpose was an election pledge of the President and the Government. He described the ongoing investigations and court cases are a sheer drama and the culprits are well aware that those cases would drag for years. MP Dissanayake told the House that the legal action on the completed FCID investigations should be fast tracked. Justice Minister Dr.Wijayadasa Rajapskshe told the House that judicial system would be reformed through constitutional amendments.