AG filed indictment against Mahendran and 9 others before Special HC

The Attorney General has filed indictment against former Central Bank Governor Arjuna Mahendran and 9 others before the three-member Permanent High Court Trial-at-Bar.

Coordinating Officer to the Attorney General,State Counsel Nishara Jayaratne, stated that the Special High Court has summoned the accused to appear before the court on July 19 for service of indictment.

The Attorney General has filed indictment against former Central Bank Governor Arjuna Mahendran and 9 others before the three-member Permanent High Court Trial-at-Bar.

The Attorney General had present the indictments on 23 counts involving the charges against the suspects, under the Public Property Act and Registered Stocks and Securities Ordinance.

Earlier this month, the Attorney General had requested permission from the Chief Justice to file indictments against the 10 defendants over the Central Bank treasury bond scam, with the Permanent High Court-at-Bar.

On June 13, the AG received the approval of the Chief Justice to hear the case before the Permanent High Court-at-Bar in the Western Province.

Satisfied with the information filed by the Attorney General in the bond scam case involving the former Central Bank Governor, former Deputy Governor P. Samarasiri, Perpetual Treasuries Limited and its Directors, the Chief Justice had ordered that the Permanent High Court-at-Bar in the Western Province try the case in respect of the offences stated in the information submitted to him.

Issuing a statement, she said that having considered the information referred by the Attorney General under Section 12A(4)(a) of the Judicature Act as amended by Act No. 09 of 2018 and the Chief Justice being of the opinion that the information satisfied criteria (i) (ii) (iii) and (v) specified in Section 12A(4)(a) has made Order under Section 12A(4)(b) of the said Judicature Act directing that Criminal Procedings in respect of the offences stated in the said information be instituted before the Permanent High Court-at-Bar in the Western Province against the suspects.

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 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)