AG seeks to indict ‘Bond Scam’ suspects before Permanent Trial-at-Bar | Daily News


 

AG seeks to indict ‘Bond Scam’ suspects before Permanent Trial-at-Bar

The Attorney-General has made an application to the Chief Justice for leave to forward indictments to the Permanent High Court Trial-at-Bar in connection with the February 2015 Central Bank treasury bond scam against former Central Bank Governor Arjuna Mahendran, former deputy governor P. Samarasiri, Perpetual Treasuries Limited (PTL), PTL owner Arjun Aloysius, PTL CEO Kasun Palisena and several directors of PTL, according to a press release issued by the coordinating officer to the Attorney-General, State Counsel Nishara Jayaratne.

The proposed indictment would accuse all ten suspects of “conspiracy to commit criminal misappropriation in respect of treasury bonds to the face value of Rs.10.058 billion and would accuse Mahendran and Samarasiri of “criminal breach of trust in respect of treasury bonds to the face value of Rs. 10.058 billion” resulting in a loss to the government of Rs 688,762,100, according to the press release issued by the Attorney-General’s Department.

Former Deputy Governor P. Samarasiri is to be accused of abetting the former Central Bank governor Arjuna Mahendran to commit criminal breach of trust in respect of treasury bonds, the release says.

PTL is to be accused of insider dealing and criminal misappropriation in respect of Treasury Bonds to the face value of Rs 5 billion. Mahendran, Samarasiri, Aloysius, Palisena and the director board of PTL are to be accused of abetting PTL to commit insider dealing and criminal misappropriation.

Once the Chief Justice approves the proposed indictment, the Attorney General will present a final indictment containing 23 counts “involving the above charges against the above accused,” the statement by Jayaratne said. “Charges have been presented under the Public Property Act and Registered Stocks and Securities Ordinance.”

Jayaratne says the charges were formulated after considering the evidence collected by the Commission of Inquiry appointed by President Maithripala Sirisena in 2017 to investigate the issue of treasury bonds, as well as material disclosed during the investigation conducted by the Criminal Investigation Department (CID), pertaining to “the wrong doing at the Central Bank Bond Auction of February 27, 2015.”

According to Jayaratne, the Auditor General has estimated the avoidable loss suffered by the government at this auction by the conduct of PTL, Mahendran, Samarasiri and Aloysius at Rs 688,762,100.

“It has been a painstaking approach by the prosecutors to rummage through thousands of pages of evidence and thereafter consider and present charges against the accused which has been so far the largest organised financial crime perpetrated in this country by any person or person which had an impact on the financial markets and the economy of the country,” Jayaratne said.

She said more indictments will be presented based on evidence revealed at the Bond Commission and investigations conducted by the CID.

 

 


Visit Kapruka.com Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.

 

Add new comment