The Attorney General has requested permission from the Chief Justice to file indictments against former Central Bank Governor Arjuna Mahendran and 9 other defendants over the Central Bank treasury bond scam, with the Permanent High Court-at-Bar.
The defendants include Lakshman Arjuna Mahendran, former Central Bank Deputy Governor Paththinige Samarasiri, Perpetual Treasuries Limited, PTL owner Arjun Joseph Aloysius, CEO Kasun Oshadhi Palisena, chairman Geoffrey Joseph Aloysius, directors Pushyamithra Gunawardena, Chitta Ranjan Hulugalle, Muthuraja Surendran and Ajahn Gardiye Punchihewa.
The AG’s Department, in terms of section 12A(4)(a) of the Judicature Act as amended by Act No. 09 of 2018, requests the Chief Justice to direct that criminal proceedings of the case be instituted in the Permanent High Court-at-Bar, considering the nature of the case, situational facts and complexity, seriousness and the adverse effects the incident had on the country’s economy.
The indictments have been filed on charges pertaining to the Treasury Bond auction on February 27, 2015.
Seven of the charges laid against the suspects are as follows;
-Conspiracy to commit criminal misappropriation in respect of Treasury Bonds to the face value of Rs 10.058 billion. (against all suspects)
-Criminal breach of trust in respect of Treasury Bonds to the face value of Rs 10.058 billion (against Arjuna Mahendran and Paththinige Samarasiri, the first and second suspects) and thereby causing a loss to the government in a sum of Rs 688,762,100
-Abetting Arjuna Mahendran to commit criminal breach of trust in respect of Treasury Bonds to the face value of Rs 10.058 billion (against Paththinige Samarasiri)
-Criminal misappropriation in respect of Treasury Bonds to the face value of Rs 5 billion (against the Perpetual Treasuries Limited)
-Abetting the Perpetual Treasuries Limited to commit criminal misappropriation (against all the other suspects)
-Committing insider dealing by the Perpetual Treasuries Limited
-Abetting the Perpetual Treasuries Limited to commit insider dealing (against all the other suspects)
The Attorney General will present the indictments once the directive is received from the Chief Justice on 23 counts involving the aforementioned charges against the suspects.
The charges have been presented under the Public Property Act and Registered Stocks and Securities Ordinance, the AG’s Department stated.
The AG’s Department says that these charges were formulated considering all the evidence presented during the Bond Commission Inquiry conducted by the Commission of Inquiry appointed by the President and the material disclosed during the investigation conducted by the Criminal Investigation Department (CID).
The AG’s Department further stated that the estimated avoidable loss suffered by the government at this auction by conduct of the Perpetual Treasuries Limited Arjuna Mahendran, Paththinige Samarasiri and Arjun Aloysius has been estimated by the Auditor General as Rs 688,762,100.
The AG’s Department stated that this as the largest financial crime perpetrated in Sri Lanka, which had an impact on the financial markets and the economy of the country.
More indictments are to be presented on the basis of evidence revealed at the Bond Commission inquiry and the investigations by the CID, the AG’s Department added.
