The controversy over the Central Bank bond sale continues to create ripples in political circles, even as Prime Minister Ranil Wickremesinghe created history this week by becoming the first sitting Prime Minister in this country to appear before a Commission of Inquiry.
What initially caught the imagination of the public was the public disclosure of telephone contacts between members of a Parliamentary Committee on Public Enterprises (COPE) that probed the bond issue and Arjun Aloysius, the son-in-law of former Central Bank Governor Arjuna Mahendran and the person at the centre of the bond sale controversy.
Evidence led at the Commission of Inquiry indicated that Aloysius had telephone conversations with United National Party (UNP) parliamentarians Sujeewa Senasinghe, Ajith P. Perera, Harshana Rajakaruna and Hector Appuhamy and Sri Lanka Freedom Party parliamentarian, Sports Minister Dayasiri Jayasekera.
Senasinghe had 227 conversations with Aloysius while Rajakaruna had 176. Minister Jayasekera had 18 conversations while Appuhamy and Perera had nine and two telephone conversations respectively. Interestingly, it was also revealed that former Finance Minister Ravi Karunanayake has had 84 telephone conversations with Aloysius while his wife Mela Karunanayake had 320 conversations.
Another finding was that former Governor Mahendran had also had 27 telephone conversations with Kasun Palisena, the Chief Executive officer of Perpetual Treasuries Limited (PTL) which is the company at the centre of the bond sale controversy. Seven of these conversations were while Mahendran was serving as Central Bank Governor.
These disclosures led to a storm of protest both from the Joint Opposition (JO) as well as the parliamentarians concerned, who rushed to protest their innocence. Some parliamentarians complained to Speaker Karu Jayasuriya that their parliamentary privileges have been violated. That issue has now been referred by Speaker Jayasuriya to the Privileges Committee of Parliament.
COPE meeting
Some parliamentarians have already taken the initiative to give their version of events. Sports Minister Dayasiri Jayasekara stated that Aloysius met him to ask for his assistance in clearing his name after it was associated with the bond sale.
Jayasekara confirmed that Aloysius had in fact contacted him and met him at his office. He said Aloysius had tried to plead his innocence. “He said he was innocent. He asked me to help establish his innocence before the parliamentary committee. I declined to do so. I told him that the allegations against him were serious and that I could not help him,” Jayasekara said and argued that the minutes of the COPE meeting will vindicate his stance.
Parliamentarian Harshana Rajakaruna told Parliament that his phone conversation with Aloysius was in January 2015, before he became a parliamentarian. He said that Aloysius was a family friend who he had known since childhood.
Rajakaruna said that as a COPE member, he had not discussed any matter pertaining to the investigations with Aloysius. “You have to forget friendships when you are a member of the COPE. This is why we all signed the COPE report and agreed with the recommendations made in it,” Rajakaruna said and claimed that there was a sinister move to sling mud at the COPE members.
It was State Minister Sujeewa Senasinghe who was the target of the opposition in Parliament for his contacts with Aloysius. Senasinghe maintains that there was no improper conduct and returned a barrage of allegations directed at JO parliamentarian Namal Rajapaksa.
On Tuesday, Senasinghe went a step further and questioned as to why there was a Commission of Inquiry only into the sale of Central Bank bonds, asking why there weren’t Commissions of Inquiry into other transactions undertaken during the previous regime.
Meanwhile, Deputy Minister Ajith P. Perera also wrote to the Commission of Inquiry. Perera denied having any conversation with Aloysius on the bond issue. In a letter to the Commission through his lawyer, the Deputy Minister has requested that, if there was evidence that there was improper phone contact, these be released to the public and that he be given an opportunity to cross examine the relevant investigating officers at the earliest opportunity.
It was against such a backdrop that Prime Minister Ranil Wickremesinghe appeared before the Commission of Inquiry on Monday. Many UNP ministers were present when the Prime Minister attended, including the UNP’s Deputy Leader, Sajith Premadasa. Former Finance Minister Ravi Karunanayake, himself a witness at the Commission some months ago, was conspicuous by his absence.
The Prime Minister was asked whether he was aware that Governor Mahendran’s son-in-law Aloysius was a Chief Executive Officer of PTL. Prime Minister Wickremesinghe said he had asked Mahendran to ensure that his son-in-law did not get involved with the company and that he divests his shares. He said he had received repeated assurances from Governor Mahendran that his concerns would be addressed, but those promises hadn’t materialised.
The commission also sought further clarification from the Prime Minister regarding a government decision to introduce a public auction for Central Bank bonds. Prime Minister Wickremesinghe, while acknowledging that he had requested Mahendran to consider the issuance of bonds through auctions, said that he had expected the Governor to follow the due process.
Prime Minister Wickremesinghe also explained four telephone calls that had been received from Mahendran with regard to the issuance of Treasury bonds and some other matters. He quoted Governor Mahendran as assuring him that finances critical to the functioning of the government had been successfully raised.
If the JO or any other political group expected drama at the Commission of Inquiry of the kind it witnessed when Ravi Karunanayake gave evidence, they would not only have been disappointed- the move may have even backfired. The Premier was frank and forthright in his answers and generated the impression that he had acted in good faith. If at all, he could now claim the moral high ground for appearing before the Commission, a task not undertaken before by a sitting Prime Minister in this country.
opposing political parties
An endorsement of this came from none other than the Prime Minister’s erstwhile political rival, former President Chandrika Kumaratunga. In a ‘personal message’, Kumaratunga noted: “My unstinted support is with you in this most challenging task. You and I will remain till the end of our days in two opposing political parties, but there can be no disagreement when the vision is to build a better country for all Sri Lankans, a country where freedom, human decency and honest, pro people governance will reign supreme. Wish you much strength and courage”.
Nevertheless, it is clear that there is resentment in the UNP that, while its members are being publicly vilified through the proceedings at the Commission of Inquiry, investigations into alleged misconduct during the previous regime are progressing only at snail’s pace. This is likely to continue to be an irritant to relations between the two parties, especially in the context of upcoming local government elections.
President Sirisena though faces an unenviable choice. He appointed a Commission of Inquiry due to pressure from within his own ranks of the SLFP. Now, some of them, such as Minister Dayasiri Jayasekera have been compelled to defend themselves. His partner in government, the UNP is annoyed that while they have to defend their conduct while in government, those who were in the government they ousted have not been subjected to the kind of interrogation that they have been through.
It will take more diplomacy, tact and understanding for the UNP and the SLFP to continue working together. However, stalwarts in both parties are confident this will happen, primarily because both President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe have a high level of understanding that transcends petty political squabbles. They will also know that, if the two mainstream parties don’t work together, it will be the JO that runs away with the spoils of victory- an eventuality that both of them want to avoid at all cost.
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