By Ishara Gamage

Ceylon Finance Today: Central Bank Governor Arjuna Mahendran said yesterday that there was no tangible reason for him to tender his resignation

The Governor was responding to a question from Ceylon FT whether he was ready to hand over his resignation from office in the aftermath of President Maithripala Sirisena’s television address to the nation last Tuesday where he (President Sirisena) said that he had told Prime Minister Ranil Wickremesinghe that the Governor should resign in the aftermath of the Rs 10 billion bond scam.

There was no reason for me what so ever to resign following President Maithripala Sirisena’s television address to the nation last Tuesday, Mahendran told Ceylon FT

Somewhere, during March, I had personally convinced President Maithripala Sirisena that there was no such a bond scam as mentioned by the several opposition parties, so there was no reason for my resignation, he remarked.

Regarding this issue, even Supreme Court also cleared my name and I don’t know why the President had to repeat this issue during his television address to the nation, Mahendran told this newspaper.

A 30-year Treasury bond issue created a controversy of epic proportions for the decision to accept bids over and above the Rs one billion stipulated in the 30-year bond offer and accept up to Rs 10 billion.

“The only weapon, opposition can use against this good governance government is this bond auction.” he said.

Meanwhile, addressing a news conference, former Governor Nivard Cabral alleged that there were over Rs 59 billion in losses following this bond issue. “I’m very categorically denying it. During Nivard Cabraal’s tenure, he had forced Employees’ Trust Fund (ETF) to bid lower rate as 9.75% for those bond issues.

While managing the ETF and issuing such orders were very unethical, because of these forceful lower rates, investments ETF has incurred unnecessary losses,” Governor Arjuna Mahendran alleged.
“We did competitive bidding .Even Cabraal’s tenure in last June, they had issued 30 year bonds same high rate as 11.25%,” he said.

“I have a personal opinion and there is an opinion among the people in the country that (Prime Minister) Ranil Wickremesinghe is neither corrupt, nor a thief. In this background I said the best thing was for the Central Bank Governor to resign.” ” President Sirisena said in his television address.

The Supreme Court in May dismissed the Fundamental Rights application against this 30-year Treasury Bond issue of 26 February seeking an independent inquiry into the Central Bank Treasury Bond issue and the Bank’s Governor Arjuna Mahendran.

The move has effectively cleared both Governor Arjuna Mahendran and primary dealer Perpetual Treasuries (of which his son in law Arjuna Aloysius is a Director) and others cited as respondents.

Courtesy:Ceylon Today