Appointment of Cabraal as Governor of Central Bank challenged in Court of Appeal

mylanka58

Well-known member
  • Feb 8, 2016
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    A writ petition was today filed in Court of Appeal seeking an order preventing Ajith Nivard Cabraal from functioning as the Governor of Central Bank.

    The petitioner, former Governor of Southern and Central Province Rajith Keerthi Thennakoon is also seeking a Writ of Mandamus to compel the Attorney General and IGP to take legal action against Ajith Nivard Cabraal considering evidence available within the Forensic Audit Report.

    The petitioner 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 issuance of Treasury bonds and inquiry pertaining to the irregularities 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 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 Ajith Nivard Cabral is under so much scrutiny over his own actions during his tenure at the CBSL for the time 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 tax payers’ 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 lose which incurred, reportedly about 10-Billion of Rupees when Greece was headed for an economic ruin.


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    warwickuni

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  • May 21, 2008
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    Good move. Bad decisions of govt make good jurisprudence but with 2/3 power and executive president there are limits for the court. (eg. Uk just passed a law to prevent their SC from dealing with dissolving/prorogation of govt by PM!!) In Sri Lanka when the decision to fill parts of Ramsay Wetland was challenged govt wanted to amend the gazette that prohibited all developments, same was done to Port City Bill was challenged , where state said that they would amend the bill in order to avoid a court decision to state so!)
     
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    mylanka58

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  • Feb 8, 2016
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    In addition, the government of Sri Lanka hired Zuberi in 2014 to rehabilitate the country’s image in the United States, which had suffered because of allegations that its minority Tamil population had been persecuted. Zuberi promised to make substantial expenditures on lobbying efforts, legal expenses, and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of $8.5 million over the course of six months in 2014. Days after Sri Lanka made an initial payment of $3.5 million, Zuberi transferred $1.6 million into his personal brokerage accounts and used another $1.5 million to purchase real estate.

    In total, Sri Lanka wired $6.5 million pursuant to the contract, and Zuberi used more than $5.65 million of that money to the benefit of himself and his wife. Zuberi paid less than $850,000 to lobbyists, public relations firms and law firms, and refused to pay certain subcontractors based on false claims that Sri Lanka had not provided sufficient funds to pay invoices.

    Relatedly, Zuberi failed to report on his 2014 tax return millions of dollars in income he received from the Sri Lankan government. While his 2014 federal income tax return claimed income of $558,233, Zuberi failed to report more than $5.65 million he received in relation to the Sri Lanka lobbying effort. Zuberi’s tax evasion over the course of four years – 2012 through 2015 – caused tax losses ranging from $3.5 million to as much as $9.5 million.

    Zuberi also violated the Federal Election Campaign Act in 2015 by making conduit contributions in the names of other people, reimbursing contributions made by others, and being reimbursed for contributions he made. Over a five-year period – 2012 through 2016 – he made or solicited more than $250,000 in illegal campaign contributions.

    The obstruction charge to which Zuberi pleaded guilty in June 2020 stemmed from a federal investigation into a $900,000 donation from Zuberi through his company to a presidential inaugural committee in late 2016. Some of the funds Zuberi donated to the committee came from other people, including one individual who gave him a $50,000 check.

    After media reports that a federal grand jury in the Southern District of New York was investigating donations to the presidential inaugural committee, Zuberi met with the individual at a California restaurant on Feb. 25, 2019. During that meeting, the individual asked Zuberi to refund the $50,000, which Zuberi did, but backdated the check to Feb. 1, 2019, to make it appear the refund was sent before he learned of the federal investigation.

    This matter was investigated by the FBI and IRS-Criminal Investigation.

    This case was prosecuted by Assistant U.S. Attorneys Daniel J. O’Brien and Elisa Fernandez of the Public Corruption and Civil Rights Section, Assistant U.S. Attorney Judith A. Heinz of the National Security Division, and Trial Attorney Evan N. Turgeon of the Justice Department’s National Security Division, Counterintelligence and Export Control Section.

    https://www.justice.gov/opa/pr/poli...zHx6YZJ9n3qBj2Y0hjBGQy9hWNJm8J-rgikMFcBQ4rmfA

    ------ Post added on Sep 15, 2021 at 11:06 AM
     
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