The Colombo Fort Magistrate yesterday issued a warrant written in English for the arrest of former Central Bank Governor Arjuna Mahendran, in connection with the controversial Central Bank Bond issue.
Magistrate Lanka Jayaratne made this order in the wake of prosecution’s request that an arrest warrant be issued on Arjuna Mahendran, the first suspect in the case, since he failed to comply with the court orders.
Issuing a warrant for the arrest of the former Central Bank Governor in terms of section 63 of the Criminal Procedure Code, the Magistrate observed that the court decided to make this order since there is sufficient material to prove that he is alleged to have committed cognizable offences under Public Property Act and Penal Code.
On a previous occasion, the Colombo Fort Magistrate had issued an order directing former Central Bank Governor Arjuna Mahendran to appear before the CID to make a statement, before March 8 this year. The notices in this regard were sent through DHL Courier Service.
Giving evidence in this regard, CID Inspector Dharmalatha Sanjeewani informed Court that a representative of DHL Courier Service, in Singapore, had reported that the recipient has moved out after it visited Arjuna Mahendran’s residence, in Singapore. She said investigations conducted so far has revealed that the suspect is alleged to have committed an offence which caused a sum of Rs. 688 million lost to the government. The Court was informed that Arjuna Mahendran had been made aware that he has been noticed to appear before the CID.
Meanwhile, Perpetual Treasuries Limited (PTL) beneficiary owner Arjun Aloysius and its Chief Executive Officer Kasun Palisena, arrested in connection with the controversial Central Bank Bond issue, were yesterday ordered to be further remanded till March 29 by the Colombo Fort Magistrate’s Court.
On February 16, Magistrate Lanka Jayaratne refused to release the two suspects on bail citing that reasons given by the defence were not sufficient enough to consider releasing the suspects on bail under exceptional circumstances.
The suspects have been charged under the Public Property Act, Penal Code, Registered Stocks and Securities Ordinance and Code of Conduct for Primary Dealers for illegal insider trading.
The Magistrate observed that the concerned Treasury Bonds can be considered as property described under Section 388 of the Penal Code.
Meanwhile, the Magistrate granted permission to the CID to record statements from Aloysius and Palisena at the Colombo remand prison.
Filing a B report before the Colombo Fort Magistrate’s Court regarding the Central Bank Bond issuance on February 27, 2015, the CID had named former Central Bank Governor Arjuna Mahendran, Perpetual Treasuries Limited (PTL) beneficiary owner Arjun Aloysius, its Chief Executive Officer Kasun Palisena and the PTL as suspects in the case.
The prosecution maintained that there had been a direct loss to the government following the issuance of bonds on February 27, 2015.
The prosecution said that Arjuna Mahendran can be charged with the criminal breach of trust, misappropriation of public funds and two others for aiding and abetting to commit this offence.
Additional Solicitor General Yasantha Kodagoda with Deputy Solicitor General Haripriya Jayasundara with Senior State Counsel Lakmini Girihagama appeared for the CID.
Defence Counsel Jeewantha Jayatilleke appeared for the suspects.
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