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Auditor+General+says++because+State+expenses+exceeded+the+budget+it+necessitated++finding+money+through+the+bonds+auction
Wednesday, 14 June 2017 - 7:53
Auditor General says because State expenses exceeded the budget it necessitated finding money through the bonds auction
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Auditor General Gamini Wijesinghe stated yesterday,  before the Presidential Commission Investigating the Bonds Issue that due to Government expenses extending beyond the budget, it had become necessary to obtain finds by auctioning bonds.

The Auditor General giving evidence before the Commission said that Perpetual Treasuries had earned a profit of Rs. 959 million during the financial years, 2014 and 2015 alone, through the bonds deal.

On this occasion the Auditor General also said that during  the financial year 2015 - 2016 the Company had earned a net profit of Rs. 5124 million and during the period from April 1st, to 31st August 2016 it had earned  a net profit of Rs. 5867 million.

Accordingly the Commission ordered the Auditor General to conduct an audit on the transactions carried out by Perpetual Treasuries in the secondary market after the controversial Bond Issue.

Attorneys appearing on behalf of Perpetual Treasuries and Former Central Bank Governor Arjun Mahendran had opposed the order stating that it did not come under the purview of the Commission.

However, Chairman of the Commission dismissed the objections.

A Judge of the Commission Prasanna Jayawardana questioned the Auditor General, if the country’s economy could be revived by issuing treasury bonds maturing on a definite date rather than taxing the public and printing new currency notes.

the Auditor General stated that bonds had to be issued to cover state expenses which exceeded budget allocations and said that if state expenses were reduced, there would not be a need to go in for such a bond issue.

He further stated that the government has no need to obtain funds only through the issuance of bonds.

 
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