The Government can seek indemnify from any of the direct stakeholders or direct participants, if they are responsible for any loss in the CBSL bond sales, the AG informed the Parliament today.

In a statement, the AG also said, “In order to consider the possibility of a criminal prosecution against a particular person or entity being initiated under the aforesaid provision or any other law, an Investigation based on a complaint to the Police would be a pre-requisite.” 

“In addition, the Director, Criminal Investigations Division of the Police Department has been advised to treat a written complaint made by the Governor of the CBSL. In relation to the above matter as first Information in terms of section 109 of the Code of Criminal Act. No. 5 of 1979 and commence investigations. The CID has also been directed to expedite such investigations and report its progress to this Department.”

“In terms of section 21D of the Registered Stocks and Securities Ordinance, in the event of the Government incurring any liability or making payment of any sum due as principal, interest or redemption proceeds with regard to Scripless Treasury Bonds, and where such liability arises or such payment is made in consequence or by reason of any default of a direct participant or a dealer direct participant, such participant shall be liable on demand by the Government, to indemnify the Government with respect to such liability or payment,” the statement added.