A former Governor of the Central Province and the South has filed a writ petition in the Court of Appeal seeking an order preventing Ajith Nivard Cabral from acting as the Governor of Central Bank.
The applicant Rajith Keerthi Thennakoon is also seeking a Writ of Mandamus to compel the Attorney General and IGP to take legal action against Ajith Nivard Cabral, considering the evidence available in the Forensic Audit Report on the Central Bank bond scam.
Applicant Thennakoon had named Finance Minister Basil Rajapaksa, 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 on the review period of (“1 January 2002 to 28 February 2015”) 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 bound 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 in 2020 after the Presidential elections and the Parliamentary elections in 2020 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 Ajith Nivard 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 is appointed as the Governor of Central Bank, the latter shall tamper the evidence against him.
The petitioner said that Cabral allegedly made the following damages or losses to the Sri Lankan Republic and its taxpayers’ money.
- Entering into hedging deal. According to reports, the Sri Lankan Government reportedly lost over $ 200 million of rupees due to this infamous agreement.
- Through the Greek Bond, the loss incurred was 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
