The communication to issue the controversial Treasury Bonds on February 27, 2015 was made by the Monetary Board to the Public Debt Department, Additional Director of the Statistics Department of the Central Bank, Dr. Mohommad Zeid Asim said.
When asked if it was a request made by the Monetary Board, Dr. Asim said the information came only as a communication not a request or a direction.
He was testifying at the Presidential Commission to Investigate and Inquire into the Issuance of Treasury Bonds yesterday.
He also said the cash flow request was received only seven days before the auction took place.
Asim pointed out to the Presidential Commission that usually such a request would come ten days or two weeks before an auction.
He also said the request was dated February 20, 2015. However to the best of his Superintendent’s knowledge, it was received on February 23, 2015. He said, the original plan of the Public Debt Department was to use direct placement instead of the auction method at the questioned auction.
He also said the auction was planned by the Public Debt Department to be held on February 26, 2015.
However, the TOD wanted to have it on another day, which is February 27, 2015, Dr. Asim said.
Asked if the member from the Treasury was present at the Domestic Debt Management Committee meeting which was held before February 27, 2015, Dr. Asim said that the Treasury representative was absent in the referred meeting and the one following that.
He also said to the Commission that the Domestic Debt Management Committee had initiated on preparing the borrowing plan for the month of March, 2015 when the Monetary Board communicated to the Public Debt Department to conduct the 30 year Treasury Bond auction within a week.
It also pointed out to the Presidential Commission that certain heads of CBSL departments were transferred in February 2015 which is before the questioned treasury bond auction took place.
Asim has been the Additional Superintendent at the Public Debt Department of the CBSL until September 25, 2015.
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