By Maneshka Borham
Opposition Member of Parliament Eran Wickramaratne recently called on the government to investigate the banking regulator, the Central Bank over its failure to take necessary action as there had been reports that the regulator had prior knowledge of the vulnerability of the now troubled Central Investments and Finance Plc (CIFL).
“CIFL, as it is shown in a Central Bank internal audit report, was in trouble two years prior to the revelations. The fact was concealed for unknown reasons or for reasons better known to the Central Bank. This needs to be probed as to why the Central Bank did not act at once these details were revealed,” the National List UNP MP, who was an Ex-banker himself, charged. He noted that the courts should inquire in to the fact that if Central Bank was privy to the fraudulent acts committed at CIFL.
Agreeing it was possible that the facts were concealed to protect the industry, as the regulator had to act with the interests of parties at large, the MP, however, said that the fact then has to be proven that it was done with good intention which should be ascertained by an independent investigation. “We cannot let the regulator get away by shirking their responsibilities as they are not above the law,” he stated adding that post-2013 debacle there is information of more finance companies that are financially vulnerable and it should be resolved by not concealing facts but also in a manner so as to not harm the industry.
Opposition Member of Parliament Eran Wickramaratne recently called on the government to investigate the banking regulator, the Central Bank over its failure to take necessary action as there had been reports that the regulator had prior knowledge of the vulnerability of the now troubled Central Investments and Finance Plc (CIFL).
“CIFL, as it is shown in a Central Bank internal audit report, was in trouble two years prior to the revelations. The fact was concealed for unknown reasons or for reasons better known to the Central Bank. This needs to be probed as to why the Central Bank did not act at once these details were revealed,” the National List UNP MP, who was an Ex-banker himself, charged. He noted that the courts should inquire in to the fact that if Central Bank was privy to the fraudulent acts committed at CIFL.
Agreeing it was possible that the facts were concealed to protect the industry, as the regulator had to act with the interests of parties at large, the MP, however, said that the fact then has to be proven that it was done with good intention which should be ascertained by an independent investigation. “We cannot let the regulator get away by shirking their responsibilities as they are not above the law,” he stated adding that post-2013 debacle there is information of more finance companies that are financially vulnerable and it should be resolved by not concealing facts but also in a manner so as to not harm the industry.
http://www.nation.lk/edition/biz-news
No comments:
Post a Comment