Newly appointed Central Bank Governor AjithNivard Cabral today informed the Court of Appeal through his counsel that he is expecting to file limited objections against the writ petition filed challenging his appointment.
Former Southern Province Governor RajithKeerthi Thennakoon had filed this writ petition seeking an order preventing former State Minister Cabraal from functioning as the Governor of the Central Bank.
President’s Counsel Romesh de Silva appearing for the Central Bank Governor told the court that his client is expecting to file limited objections challenging the maintainability of the writ petition. De Silva said the papers relating to the petition had been served on the respondent on Tuesday (21) and thereby sought more time to peruse those documents.
Meanwhile, President’s Counsel MaithriGunaratne appearing for the applicant, submitted to the court that he is seeking an interim relief since there are several unfavourable transfers in the positions of Central Bank following the appointment of Ajith Nivard Cabraal.
Accordingly, the Court of Appeal Justices Sobhitha Rajakaruna and Dhammika Ganepoladecided to fix the petition for support on October 7. The respondents were directed to file limited objections on September 30.
Through his petitioner, Rajith KeerthiThennakoon is also seeking a Writ of Mandamus to compel the Attorney General and IGP to take legal action against Ajith NivardCabral considering evidence available within the Forensic Audit Report.
The petitioner had named Finance Minister Basil Rajapaksa, Central Bank Governor Cabral, Secretary to the President P. B. Jayasundare, Inspector General of Police, Central Bank Deputy Governor T. M. J. Y. P. Fernando and Attorney General as respondents.
The petitioner stated that the Presidential Committee Report of 2017 (Bond issuance) made recommendations to then President to appoint a team of experts to conduct a forensic audit affair of the Central Bank on the issuance of Treasury bonds and inquiry about the irregularities that occurred within the Central Bank on a designated period. This responsibility was assigned to the Central Bank and the Monitory board of the Central Bank.
The Petitioner states that according to the forensic report pertaining to the review period of (“1 January 2002 to 28 February 2015”) calculated that the Central bank of Sri Lanka had incurred losses between Rs. 10.4 – 10.6 Billion from the year 2005 to 2015 to the Sri Lanka Government, whilst Ajith Nivard Cabral was the head of the Central bank.
The Petitioner is of the view that the aforesaid Special Presidential Commission Report and the aforesaid Forensic Report are now a public document and the Attorney General and IGP should presume its existence and they are legally bounds to act upon on the recommendations made by the Presidential Commission report and the findings of the forensic report.
The petitioner said the incumbent President and the new government inducted on 2020 February after the Presidential elections and the Parliamentary elections in 2019 August, promised through its election manifesto to take necessary legal actions against the suspects who alleged to have committed financial swindling as per the revelations made by the said two reports.
The Petitioner further states that whilst AjithNivard Cabral is under so much scrutiny over his actions during his tenure at the CBSL for the period from 2006 to 2015, in the event he being appointed as the Governor of Central Bank, the latter shall tamper the evidence against him.
The petitioner further said the Cabral is single-handedly alleged to have made the following damages or losses to the Sri Lankan Republic and its taxpayers’ money.
1. Entering into hedging deal. According to reports, the Sri Lankan Government had reportedly lost over $ 200 million of rupees due to this infamous agreement.
2. Greek Bond loss which incurred, reportedly about 10-Billion of Rupees when Greece was heading for economic ruin.
The petitioner said according to the Section 20 of the Monitory Law, The Governor of the Central Bank is the principal representative of the bank and the Monetary Board and such Governor should act in such capacity, following policies or rules approved or made by the Monitory Board as well as according to the general law of the country.
The Petitioner pleads that there is sufficient evidence within the Forensic Report to establish that Ajith Nivard Cabral, being the principal officer to the Central bank has violated policies and rules approved by the Monetary Board, as well as the general law of the country.
