The Central Bank’s Internal Audit shows clear evidence of serious mismanagement and corruption under former Governor Arjuna Mahendran, State Finance Minister Lakshman Yapa Abeywardena said yesterday.

He was addressing the press at a conference at the Ministry.

Minister Abeywardena said a separate case would have to be filed against the former Central Bank Governor over the findings of the Internal Audit by the Central Bank’s Internal Audit Department.

“This is aside from the ongoing investigations into the bond scam,” the State Finance Minister said.

On Sunday (5), Voice against Corruption (VAC) Convener Wasantha Samarasinghe alleged the former Central Bank Governor Arjuna Mahendran had splurged Rs. 66 million belonging to the Central Bank on personal expenses.

Samarasinghe said an audit carried out by the Central Bank’s Internal Audit Department had found that Mahendran had spend Central Bank funds on 163 occasions during a span of 21 months for his own purposes.

The former Central Bank Governor hit back at the allegations on Tuesday (7) releasing a statement saying the charges against him were doctored by a group of disgruntled Central Bank employees.

‘During my period as Governor I cancelled all the tamashas and excessive foreign travel enjoyed by a few select cronies of a former Governor. This is why these persons lobbied for my removal,’ Mahendran said in his statement.

State Finance Minister Abeywardena however questioned the veracity of his statement, saying, ‘If the letter does not have his signature on, he can easily rescind responsibility for it in the future, saying he did not issue it,” he said.

“I suggest the former governor takes the time to respond to the allegations brought against him by the Internal Audit Department,’ he said, ‘Instead of making statement to the public to divert attention from the fact.’