President Finds Fault With Ravi, Aloysius and Mahendran: Says Undue Profit made By Perpetual Over 11 Billion

January 03, 2018

President Maithripala Sirisena said he had already handed over the report of the Treasury Bonds commission to the Attorney General to initiate action against those responsible for the bond scam. 

Sirisena, in a special statement a short while ago, said that the commission had recommended action against former Central Bank Governor Arjuna Mahendran, Perpetual Treasuries owner Arjuna Aloysius , former Finance Minister Ravi Karunanayake and several others. 

"I have already submitted this report to the Attorney General and the Commission recommends that the criminal and civil court action must be taken through the Criminal Investigations Department and the Bribery or Corruption Commission," he said, in the statement. 

"The Commission also recommends changing the existing law and regulations to take civil and criminal action against the people who are responsible for the scam," the President said. 

"The report stated that the Perpetual Treasuries Limited has made profits through illegal means with the involvement of Mr Arjuna Mahendran, Bank officials and some outside individuals."

"In the auction held on 27th February 2015 alone the Perpetual Treasuries Limited has made a minimum benefit of over Rs 688 million. The Commission is of the opinion that further investigations could reveal that this amount could even be more than that."

"As revealed during the investigations Perpetual Treasuries Limited has made undue profit of Rs 11,145 millions in the secondary market. In this Employees Provident Fund and other government institutions had lost more than Rs 8,524 million or Rs 8.5 billion."

"In the auction held on 27th February 2015 alone the Perpetual Treasuries Limited has made a minimum benefit of over Rs 688 million. The Commission is of the opinion that further investigations could reveal that this amount could even be more than that," he added.

"It is stated that senior officials of the Central Bank were inactive before the former Governor of Central Bank, Arjuna Mahendran. It is believed that because they had not questioned about these and had become inactive, such incorrect decisions were made."

"Mr Mahendran has made interference into bond auctions through a system of incorrect and unconventional methods and he was responsible for providing internal information to outsiders. One party has used such information to obtain undue monetary profits."
"The Commission report said that the honorable Prime Minister’s responsibility in the appointment of Mr. Arjuna Mahendren as the governor to the Central Bank was proper. The Commission is of the opinion that the PM made his statement in Parliament regarding the appointment of Mahendran believing in the facts presented by Mahendran and Samarasiri, especially the promises made by Mahendran. Report also says that the Prime Minister should not have done that."
"The Commission stated that moreover these facts were before the COPE committee and the Prime Minister had not stated that because of that he had not taken the proper action against Mr. Mahendern."
"The commission Refers to the allegation against Ravi Karunanayake regarding the payment of rent for the penthouse apartment belongs to the Aloysius Family and their Walt and Rowe Company and stated that Karunanayake was responsible for that. It has recommended that the government should to take necessary action against Mr. Ravi Karunanayake under the section of bribery and corruption and further legal action under the penal codes for giving false evidence at the Commission."

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