Former Central Bank Governor Arjun Mahendran walked into the Public Debt Department when the controversial Treasury bond auction was very much underway, Dr. M.Z.M. Asim, the Additional Director of Statistics Department of the Central Bank said.
Dr. Asim also said that during his office as an employee in the CBSL, he had never experienced an occasion where a CBSL Governor visited the Public Debt Department (PDD) when a treasury bond auction was taking place at the department premises.
Asim also said his seniors also observed that they have never encountered an incident where a CBSL Governor walked into the PDD on an auction date or during an auction time under any normal circumstances.
He was answering a question directed by Senior Deputy Solicitor General Priyantha Navana, as to who visited the PDD on February27,2015, when and where the questioned treasury bond auction was held.
Responding to the question, Dr. Asim said the former CBSL Governor Arjun Mahendran visited the PDD around 10.45 a.m. in the morning while the questioned auction was taking place during 8.30 a.m. to 11.00 a.m on the said date.
Dr. Asim, who was one of the then Additional Superintendents of the Public Debt (ASPD) during 2015, was testifying at the Presidential Commission to investigate and Inquire into the Issuance of Treasury Bonds yesterday. Explaining the occurrences followed by the arrival of the former CBSL Governor Arjun Mahendran, Dr. Asim said that he and his colleague ASPD U.L. Mutugala, accompanied Mahendran into the office of the Superintendent of the Public Debt (SPD) C.M.D.N.K. Seneviratne.
Two of the Deputy Superintendents of the PD also followed in with me, Asim also said.
Asim as requested by the Commission went on to explain how former CBSL Governor, after proceeding into SPD Seneviratne’s office where the SPD was present, sat on the sofa in the room and recollected how the latter started to inquire on three specific matters. “First, the former Governor inquired on the auction details which was currently taking place. When he inquired about the auction details, the SPD Seneviratne responded that the aucion details cannot be provided since the auction was yet on. Seneviratne said to the former Governor, that she would be able to provide auction details once the auction finishes.” Asim said.
Asked whether Mahendran should have had a general knowledge about the auction details, Asim said that to his knowledge the former governor must have known the auction details.
The second inquiry made by Mahendran was the details on a meeting which was held on the previous day of the said auction date, regarding the additional government’s borrowing requirements.
Asked whether Mahendran mentioned on what the additional government funding was required for, Asim said he recollects Mahendran to mention that the fund requirements were pertaining to road development activities. The third query the CBSL Governor made was on the modality of funding practiced at that time, Asim further said. “To that effect the Former Governor mentioned his preference for auction base financing method. I did not read into his preference whether it was a personal one or not.” he said.
Asked whether he detailed the former Governor on the auction details, Asim answered in the negative.
Asim then went on to say that he left the SPD’s office in the middle of the conversation as the Head of the Front Office went into the said office.
“The discussion between the SPD and the former CBSL Governor did not reach any conclusion at the point which I left the office room. It was only a general discussion.” Asim also said. Asim said, after a while, he saw Mahendran walking out of the SPD’s room around 11.11 a.m.
Asked on when the auction matter closed, Asim said it ended at 11.05 a.m.
After the auction was over, Mahendran left to the C1 Conference room for a meeting, Asim told the Commission.
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