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People’s court gave verdict on those who covered up bond scam – Cabraal

The Court of the people gave the verdict on those who covered up the bond scam, said former Central Bank Governor and now national list nominee for MP, Ajith Nivaard Cabraal, in a post-election statement.

As investigations on the bond scam gather momentum on the basis of the Prevention of Money Laundering Act, under direction of the AG’s department, Ajith Nivard Cabraal recently published an extensive work that unravels the cover up of the Bond Scam. It’s available on amazon.com and is titled ‘The Great Bond Scam Cover-Up: The Mother of All Cover-Ups.’

Cabraal’s expose does a deep-dive into the former Premier Wickremasinghe’s decision to carry out the 2015 bond issue by auction, and not direct placement. The Prime Minister’s order created a steep spike in the interest rates paid by the Government for all Treasury Bills and Bonds by over an incredible 300 basis points, enhancing the interest rates across the entire economy, and causing a series of shocks, set-backs and losses, writes Cabraal.

As a result of the Bond Scam, it is now evident that every borrower has had to suffer a premium on the interest payable, since the interest rate equilibrium that prevailed just before February 2015 was greatly disturbed, leading to higher costs and greater risk, both individually and as a society, the author points out with extensive references to the circumstances and facts that are related.

He also writes about the subsequent presidential Commission of Inquiry into the bond issue, and states that it is clear from that Supreme Court decision in a fundamental rights case regarding the Greek bond issue carried out during his tenure as Governor Central Bank (CBSL), that the Supreme Court had unambiguously exonerated all Members of the Monetary Board and the Central Bank staff from any wrong-doing whatsoever, in making the investment in the Greece Bonds.

“The Auditor General has stated though the Central Bank had incurred a loss from the investment in Greece Government Bonds, it has earned a total net profit of US$ 430.2 million on International Reserve Management during the year 2011’, Cabraal points out, citing authoritative sources.