What were revealed in the Bond Commission report ? What were concealed ? What ought to be done now?

-Visal’s analysis

(Lanka-e-News - 07.Jan.2018, 2.00PM)  The report of the Presidential Commission appointed to inquire into the  treasury bonds issue which comprised 1135 pages each of A4 size was handed over to the president . The latter  who  read it for 48 hours hardly sleeping a wink, revealed extracts of it which caught his fancy before the Television cameras . 

He said , while mounting the election campaign  stage as the SLFP leader , that he did not appoint the Commission targeting a particular party (UNP).

However , when the Commission was holding sessions  and based on the media reports after the report of the Commission was  out  , the fact that the UNP was targeted  cannot be concealed . The fact that the UNP was targeted for attack by the SLFP holding media briefings regularly  after allocating long periods of time   specially via the television channels of the state media to give wide  publicity also cannot be concealed.

Sudharshana Gunawardena the Government information official says the election criteria are being followed , yet the State media are favoring the Sirisena group. Gunawardena who is struck dumb over the Lanka e news ban ,  and had been unable to give a suitable reply for two  long months to the letter sent by the lawyer for Lanka e news has demonstrated his incapability instead of  proving his capability. 

Even though the Bond Commission report has not been released to the public , based on the  announcements and insinuations  made by the president , it is necessary to dissect the views which have emerged sans political affiliations. Simply based on the political objective to attack the UNP , misconceptions and misgivings have arisen among the public pertaining to the  Bond Commission. Our fear  that there could be a  danger  of digression in this exercise  while  searching  for the truth , the  fraudsters could be aided  has not been dispelled , neither has our stance changed. 

COPE Committee  report and self seeking opportunism 

What must be mentioned first and foremost  is : While Sirisena was seeking to become the self proclaimed hero in the race , his Bond Commission recommendations have not gone even an inch  beyond those of the COPE report that was appointed in the same  connection. In both these reports there is nothing which says there had been political interference or influence. 

The COPE Committee report on the recommendation of the P.M. to take action action according to the laws was handed over by the speaker to the Attorney General about a year ago. Since the recommendations made in the report of  the presidential commission now by the AG were already made in the COPE report then  , it is only precious time which has been wasted – about a year had been wasted without taking legal action. 
  
There is nothing wrong if anybody concludes the Bond Commission which could not investigate anything anew was a project of Sirisena designed to mudsling at the UNP. The charges mounted against Ravi Karunanayake are extraneous matters  as far as the  the Commission is concerned  and facing those are his responsibility. On the other hand if the AG had taken  action duly based on the recommendations contained in the COPE report , by now it would be at trial stage in courts.  If that was the case justice would have been meted out to all parties , and the political mudslinging could have stopped then and there. Sadly, that was not the aim and agenda of Sirisena . Justice is anathema to him  him. Prone to procrastination , he delayed everything until elections are around the corner . That is the innate characteristic of opportunists.  The irony of it is - the unfortunate victims of opportunism are the masses and not the opportunists . 

If the president is not an opportunist and truly loves the  country , in the preliminary  stage itself he should have cancelled  the doubtful  bond transaction  , and exercising his executive powers ordered to  call for bids again. If he had done that none of these empty issues would have cropped up .

On the contrary , what Sirisena wished was , allow the transaction to take place , and if anything had gone amiss to cash in on that to sling mud at the more powerful party of the consensual government , whereby he only drove the entire government into a deep predicament. Finally Sirisena by trying to cut the nose to spite the face became a Sillysena.

It is the view of popular  analysts of the Financial market , there may be unsolved  issues amidst the mudslinging , between  the  COPE report and Bond Commission report .

It is the perception of foreign specialists who have expert knowledge on this subject that the Perpetual Treasuries Co. had acted in a manner to turn the Central bank procedures to its advantage. Such incidents are natural in any financial market in the world, as they are not charity Institutions. Perpetual securities  is a company  whose goal is  to make maximum profit in  the Financial market.

State banks , State funds including about 15 companies  function as primary buyers. It is one group that participates in the treasury bond transactions of the companies. Among those who are in the same sphere , knowing each other and and exchanging information are  something to be  expected. At the same time there can also  be groups who are employed in the Central bank.

The COPE report pointed out that the Central bank activities have been carried out sans transparency , and there are reasonable doubts  that there is a betrayal   of the confidence reposed in the Central bank . This is a good observation and an index signaling what  could happen. 

The COPE Committee report also mentioned that the Perpetual Treasuries, a primary dealer during a short period had been able to earn a massive profit. It is significant to note neither the COPE report nor the Presidential Commission report has  used the word ‘fraud’  or anything that  suggests there has been a fraud. Instead it has gone on saying  ‘ massive profit ‘ and ‘massive gain’ only.

It is the view of some ,because Perpetual Co. purchased the bonds below  the published value there was a loss to the government . Specially the JVP and the Auditor General are of that opinion. The UNP group of M.P.s who added a footnote at the COPE Committee are of the stance fluctuations in the market prices can be anticipated , and owing to that the government can incur losses.

According to Financial experts , the stance of the UNP group is technically not incorrect .  Therefore has the government suffered loss? If that is so how should the transaction be conducted? The COPE Committee had  two standpoints. 

Minister Rajitha Senaratne at a media briefing to reveal the cabinet decisions   said ,  the assistance of foreign financial counselors are necessary . It is the opinion of many analysts that is a most unerring conclusion. 

By this transaction if the State institution, Bank of Ceylon’s  EPF funds have sustained loss , it Is unarguably because of its  wrong decisions taken at the Financial market as the   responsibility of perspicacious  conduct is shouldered by those  Institutions.

The profits made by Perpetual Treasuries in the dual market have been indicated in their 2015/2016 Financial report. Hence these profits are not illicit earnings , and made with transparency, and subject to taxes.

Figures of their own untrustworthy to the Commission …

The figures revealed by the Presidential Commission to a great extent do not portray the true picture and based on assumptions subject to changes , is the opinion of specialists.  As the presidential Commission itself had recommended that a forensic financial audit shall be conducted if the  actual amount is to be  ascertained ,  it is itself  testimony they have no faith in their figures. What actually should be done is enlist the assistance of impartial foreign financial specialists and investigate this with a view to rectify the shortcomings in the present financial  market , and ensure against such  situations   cropping up again in  the future.
   
Those who can speak about the treasury bonds and express views ought to be those who have  specialized knowledge. Not idiots and imbeciles like Wimal who could not even pass the GCE O/L or Mahindananda who was just a clerk . These imbeciles have knowledge  only to enhance their cosmetic appearances with gel on their hair and make up on their faces to look photogenic, but  have  no core values. Just because they have cavernous stinking mouths ( from which a lie never fails to drop each time they open those)  does not mean their loud utterances can express right opinions or impress any sane and sensible individual. 
   
It is because every vagabond , fraudster and scoundrel was  given the opportunity to express their views the true position pertaining to the bond issue was drowned in their idiocy and imbecility , and unwarranted mudslinging was hurled at the UNP. It is very unfortunate  president Sirisena who was propelled to the exalted presidential post by the UNP took undue  advantage of the situation and made it an opportunity to commit villainies against the same UNP - Bit the hand that fed him.

We have only been opposing that. We were never against conducting a probe into the treasury bonds issue to investigate the truth . However except the conjectures and assumptions relating to the bonds , the actual information and statistics had not been revealed yet .All what we can hope is at least those will come to light in a future court proceeding .

By Visal Karunaratne

Translated by Jeff 

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by     (2018-01-07 08:48:20)

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