We were just informed that the Commercial Bank issue of Rs5B of listed debentures was oversubscribed 2 times, and so they will go up to Rs7B.
While the cretins at the Central Bank
have been able to craftily shift the blame of their incompetence to Perpetual
Treasuries, if they did what Commercial Bank just did, NO ONE will be the loser
and the Country will GAIN.
So how about doing this openly for
public bidding? I am using this example to explain to the uninitiated General
Public how a simple form of debt auction is done. It is clear if there was some
favoritism, then it is ALL THE FAULT OF THE CENTRAL BANK STAFF WHO ALLOCATE WHO
GETS HOW MUCH, that is at the heart of the abuse. That is how the illegal Private
Placements were done by Nivaard Cabraal for so many years, over 6 years I think.
Where is the shouting about that?
It is this simple concept that the COPE
chairman, who relied on the Auditor General’s comments, does not understand. The
Auditor General on the other hand does not appear to have totally understood how
important his words are in making his determination of matters such as a loss or
profit to the CBSL, because is completely depends on the supply and demand and the
prevailing market rates.
So if we take this example above, one can
say that Commercial Bank priced their Listed Debenture too favorably, and if they
priced it at 11.5% instead of the 5 years at 12% and 10 years at 10.25% it would
have been better!
IT IS EASY TO SECOND GUESS and rates and
perceptions vary on a daily BASIS, and this is where the PRIMARY DEALERS COME IN
to take some of the risk out of the guessers at the Central Bank. Therefore the
Auditor General is WRONG to lay the blame on Perpetual for any loss, as it is the
CENTRAL BANK which decides HOW MUCH, AT WHAT RATE, TERM to allot.
HOW CAN PERPETUAL BE BLAMED FOR BEING GIVEN
THESE BONDS?
It is time some respectable people, and NOT
JOKERS LIKE WA WIJEWARDENA to opine on this matter, and once and for all shut these
know it all KNOW NOTHING Columbian Over Educated Johnnies out of their ignorance.
It is truly SHAMEFUL that so many ignorant
people have determined, that due to the Press which is the MOST ignorant, and have
NOT done their job of explaining what it is that was wrong, that a crime in fact
took place.
WHERE IN THE CRIMINAL CODE IS THEIR ANY WRONGDOING?
If you read the attached links you can see how ignorant everybody is. COPE especially, but also the Auditor General and most of all the General Public, in the behavior of the CENTRAL BANK IN THEIR COMPLICITY IN CRIME, and WHO SHOULD ALL BE IN JAIL FOR THEIR WANTON LYING IN LEADING EVERYONE ASTRAY!
http://www.dailymirror.lk/article/Take-action-against-Arjun-Aloysius-COPE-117997.html TAKE ACTION AGAINST WHOSE WRONG DOING? CBSL's
http://www.ft.lk/article/575920/Fireworks-at-COPE
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=154363
http://www.dailymirror.lk/article/Take-action-against-Arjun-Aloysius-COPE-117997.html TAKE ACTION AGAINST WHOSE WRONG DOING? CBSL's
http://www.ft.lk/article/575920/Fireworks-at-COPE
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=154363
It is time that COPE if they recommend that someone be punished, show what line of the Criminal Code has been broken and what evidence if any they have to back that up. It is clear this is merely a political statement to placate an ignorant public baying for the wrong blood.
ReplyDeleteIt is time to name and shame the Central Bank High Ups who are the most guilty as THEY DETERMINE WHO GETS WHAT and so they are open to be compromised.
The ignorance of the articulate is the reason why Sri Lanka will never be able to earn its rightful place in any context, as the rubbish that comes out of people's mouths when they open it is indicative of their thought processes trained out of their by rote learning and inability to evaluate and dissect what is read and written to determined the lies, truths and half truths, so that any conclusion they make is NOT on heresy but reasoned thinking.
ReplyDeleteTalk about so much anti Buddhist thinking in a pseudo Buddhist country.
Another thing needs to be added to make this understood. Namely that you arrange an overdraft facility to buy these bonds, be they Govt or Commercial Debentures as you risk in that you do not know how much you will be awarded by the CB or in this case Commercial Bank. As I understand it, Perpetual had a huge line of credit from BOC due to their vast group collateral, which helped them bid for that Bond in question. Obviously people are talking rot, using circumstantial evidence such as " within weeks of appointment, and a change to the auction system, the son in law made billions! - so there MUST be collusions" that is called Sri Lankan logic. NO wonder the state of the state is such. It reflects the mindset of the island mentality people
ReplyDelete17 June 2017
ReplyDeleteNow proof that was pointed out so long ago in this article about the incompetence of the AG. He really is an idiot, who is NOT worthy of his job, and even he does not realize his utter incompetence in commenting on Bond Auctions. Therefore it is clear that the Bond Commission will have no option but to proclaim that they have NOT been provided with convincing evidence by professionals of integrity that there in fact was a fraud of mammoth proportions. It is a shame we have such an incompetent person pontificating on this matter at this critical juncture to make a mockery of the whole procedure.
Important to read the link along with what is written here in addition to the article itself and possibly earlier articles in this matter.
http://www.dailymirror.lk/article/Bond-sales-AG-s-selections-contains-miscalculations-Counsel-131047.html
http://www.dailynews.lk/2017/06/17/local/119212/mahendran%E2%80%99s-lawyer-pinpoints-errors-ag%E2%80%99s-analysis
ReplyDeleteDaily News Article refuting the Auditor General's Testimony!