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This is after he found that Police action taken so far since the alleged offence was committed was slow moving. Action in respect of three persons produced in the Fort Magistrate’s Court has been limited to reports presented only last year, he learnt.

This is in respect of Arjuna Mahendran, former Governor of the Central Bank, Arjun Joseph Aloysius of Perpetual Treasuries Ltd., and Kasun Oshada Palisena of the same company. The complainant is Central Bank Governor Indrajit Coomaraswamy,

Though President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe’s government are drifting further apart, they regularly attend functions together. Here they are seen at the 36th anniversary sessions of the Sri Lanka Administrative Service. This Nelum Pokuna ceremony was also attended by Public Administration Minister Ranjith Madduma Bandara.

This situation, a source close to the Presidency said, was one of the primary causes why Sri Lanka was unable to provide comprehensive details which the Singapore government had sought for the extradition of Arjuna Mahendran. President Sirisena made the request directly from Singapore Premier Li Hsieng Loong when he met him in January this year. This came during a one-on-one segment of his talks with Premier Li during a visit to take part in an environment conference sponsored by the United Nations. He handed over a dossier on Mahendran’s alleged involvement in the bond scam to Premier Li.

When there was no response, President Sirisena just days earlier, publicly hit out at the Singapore government for not heeding his request.  The occasion was the launch of a campaign by the Commission to Investigate Allegations of Bribery or Corruption. It was to counter bribery and corruption.  Sirisena complained that Singapore had not heeded his request despite an appeal at the highest level.

Singapore, however, rejected the accusation. A spokesperson for Singapore’s Foreign Affairs Ministry was quoted by reputed news agencies as saying that they were co-operating with Sri Lankan counterparts. However, Sri Lanka’s request to return Mahendran “lacked certain information required under Singapore’s extradition laws” and they have requested Colombo to provide it, said the spokesperson. He added that “we look forward to receiving the requested information from Sri Lanka, so that we can consider the request further in accordance with our laws.”  That now seems to be happening.

Ahead of President Sirisena’s request, Defence Secretary Hemasiri Fernando had through diplomatic channels sought the extradition of Arjuna Mahendran from authorities there. Since then, there have been exchanges between Colombo and Singapore. The source said recently the Singapore Attorney General Lucien Wong had sought information on Arjuna Mahendran in respect of the:

• Warrant of arrest issued by competent authorities in Sri Lanka.
• The number of charges, the details and particulars of each charge and the corresponding provisions of the law applying to each charge.
• Witness deposition (e.g. from the Prosecutor, Investigator and all relevant witnesses) setting out the evidence in support of alleged offences.
• Copies of exhibits (e.g. charge sheets, the criminal complaints and other documentary evidence).
• Documents of information enabling the identification of the fugitive (e.g. fingerprint records, passport details, photographs, INTERPOL red notices)
• Detailed statement of facts setting out the offences levelled against the fugitive.

This has now activated the Attorney General’s Department in Colombo. Anytime now, it will file a more comprehensive report in the Fort Magistrate’s Court bearing in mind the issues raised by the Singapore Attorney General. It is also expected to contain more new details arising from new findings, as a stepped-up investigation is under way.

They have widened the investigations after President Sirisena’s directive. Criminal Investigation Department detectives last week arrested the Central Bank’s former Deputy Governor Pathirage Samarasiri, Perpetual Treasuries Private Limited (PTL) Chairman Geoffrey Aoloysius, its directors Pushpamitra Gunawardena, Chitta Ranjan Hulugalle and Muthuraja Surendran. They were remanded till April 5 by Colombo Chief Magistrate Lanka Jayarathne.

Deputy Solicitor General Haripriya Jayasundara told court that the suspects had committed offences of aiding, abetting, conspiring on several counts under Section 56 of the registered Stocks and Securities Ordinance Act and violated the Public Property Act.  Deputy Solicitor General Jayasundara alleged that the Central Bank’s former Deputy Governor had aided and abetted this action by following the instructions given by the Central Bank’s then Governor Arjuna Mahendran, while serving as the Chairman of the Tender Board for the issuance of Treasury Bonds at the time of the scam on February 27, 2015.  Matters arising from the new arrests are also to be included in the updated report Police will file. This is expected to provide a comprehensive picture to Singapore authorities, Police said.

President Sirisena has learnt that reports filed before the Fort Magistrate in respect of the three accused in the bond scam had been only until late 2018.  The  last one in August 2018 has noted that the three “suspects have committed an offence punishable under clause 5.1 of the Public Property Act amended in 1988 and 1999.” According to this provision, “Any person who dishonestly misappropriates or converts to his own use any movable public property or commits the offence of criminal breach of trust of any movable public property shall be guilty of an offence and shall upon conviction be punished with imprisonment of either description for a term not less than one year but not exceeding twenty years, and with a fine of one thousand rupees or three times the value of the property in respect of which such offence was committed, whichever amount is higher.”

The report filed before the Fort Magistrate’s Court late last year on “implementation of (court) orders from the commencement of the case on February 2, 2018 to August 9, 2018 contains the developments during that period. Some of the highlights:

“A Red Notice has been issued on the first suspect Lakshman Arjuna Mahendran effective from April 19, 2018 on a request to the International Police (INTERPOL) by the CID through the National Central Bureau (located in the CID headquarters). The suspect was living in Singapore.

“The Headquarters of the International Police (INTERPOL) sought the following information on April 27, 2018 from the National Central Bureau.  1. Is the Red Notice to be implemented regarding further investigations or have charges been filed against him? 2. If charges have not been filed, is there provision for extradition under Sri Lankan laws? 3. If information about his present whereabouts is available, is there an extradition treaty with that particular country? 4. Has there been a request for extradition? 5. Has there been a request for extradition based on agreements signed on co-operation in combatting crime?

“A report containing legal advice provided by the Attorney General’s Department to the CID on May 22, 2018 has been directed to the international police on May 23, 2018. Also, the Director, CID by letter dated May 28, 2018 requested the Attorney General to take legal action for extradition. Accordingly, the AG’s Department has said it is in the process of taking steps in this regard. On August 16, 2018, an e-mail was received from the Secretariat to the Commission for the control of INTERPOL’s files to the CID and the first suspect has sought the following documents from them:

a.   He is wanted for “Criminal Breach of Trust, Criminal Misappropriation” on the basis of arrest warrant issued on March 15, 2018 by the Magistrate.

b.   The maximum penalty possible is seven years imprisonment.

c.    The summary of the facts to the case.

d.   A copy of the arrest warrant.

They have also asked if the CID has any objections in releasing the above information to the suspect…….” The AG’s Department had replied that there were no obstacles in releasing copies to the first suspect. CID made arrangements to send the files to the Secretariat to the Commission for the control of INTERPOL’S files……

Early this month, Foreign Minister Tilak Marapana told Parliament that the INTERPOL had issued two different Red Notices. They had been served to the Singapore government but it had not acted on them. That government’s position has since been clear. Singapore has said that the material given to it to make a decision was inadequate.

The Police report also notes that on February 2, 2018, the Magistrate’s Court ordered Central Bank Governor Indrajit Coomaraswamy “to submit a detailed a report about Perpetual Treasuries Ltd (PTL) transferring part of the illegally obtained funds to third parties and transferring parts of the funds directly or indirectly to persons or institutions which provided sensitive information.”  However, it says “in the records filed on August 9, 2018 in keeping with the Court order, the reports have not been handed over completely.”

Thereafter, the Court ordered the lawyers representing the Director or/and Chairman Jeffrey Joseph Aloysius of (i) Perpetual Treasuries Ltd – (ii) Perpetual Capital Holdings Private Ltd –  (iii) Perpetual Asset Management – (iv) Perpetual Capital Private Limited –

The report points out that “If the CID is in the possession of the requested documents, it would be able to send a person or persons who have the knowledge to retrieve the documents to the CID……” That appears to have been done. The report said that the “Chairman of Perpetual Treasuries Jeffrey Aloysius (later) collected 174 files from the CID. Their attorney together with Jeffrey Aloysius collected 199 documents related to Perpetual Capital Holding Pvt. Ltd and 79 documents of Perpetual Asset Management.

In recommending the impounding of passports of two accused (including Arjuna Aloysius), the report notes that the losses caused by the Central Bank bond scam have had an impact “on the national economy and thereby the cost of living has risen affecting the people.” It also cautions that “there could be public disquiet as these offences have caused public unpleasantness.”

Drug detections

This new development, four years after the bond scandal, is sure to have its own political repercussions at the upcoming presidential election. On the one hand, President Sirisena has launched a major drive against drug abuse and illicit liquor. Commendably various arms of the Police are unearthing drugs almost on a daily basis and bringing out a variety of nom de guerre of the operators. Yet, a question that begs answer is whether the quantities they claim to unearth are as high as they project them to be. This is particularly in the light of such findings often not being attributed to anyone. If such a situation is allowed to continue, there will come a time when Sri Lankans would have used more drugs than they have eaten potatoes in a month. Among the reasons are the rivalry between agencies to show one is doing better than the other.

Many weeks ago, the media were made to believe that Makandure Madush, the drug king pin, was arrested in Dubai following a joint raid by the local and Dubai Police. It turned out to be fake news. Of course, there is no worry when it comes to much bigger detections. Whatever agency that makes the detection, standing before the polythene sachets containing cocaine or any such substance, is the Police spokesperson, Ruwan Gunasekera. Previous spokespersons who faced television and still cameras gained enough recognition to contest parliamentary elections but did not win. Is this not a case of one Police officer taking the credit for the hard work of a number of them? Surely, would not the showing of the detection itself have a better impact for the Police Department? Another serious danger is the Cabinet of Ministers approving questionable surveillance equipment to detect drug abuse. There are widespread fears that they would transcend fundamental freedoms and privacy of citizens. As one senior Police officer remarked, “in trying to fight a menace, they are creating another one.” He argued that other than the intelligence that was sometimes lacking, what was required was to take a good look at how the system worked. Drug lords use vast sums of money to buy influence and that covers corrupt investigators too, he said. Ironically, there has been no close study of such procurements by those in the know.

There is little doubt that the war against drugs will find a place in the presidential election campaign that will be launched by President Sirisena. A jewel in the crown for this campaign will be the stepped-up investigations into the Central Bank bond racket and making a reality the return of former Governor Arjuna Mahendran to face charges. Now that President Sirisena is working on providing the answers to questions raised by the Singapore government, the efforts have gained more than a little credibility. More so, when the details they have sought for the extradition of Arjuna Mahendran are being met. They cannot be seen to be protecting a fugitive.

Presidential election hopes

The launch of an election campaign by Sirisena raises an all-important question. Though his dilemma is widely known — that he will not be a candidate of the Sri Lanka Podujana Party (SLPP) or its allies — he appears still hopeful. According to sources close to the presidency, Sirisena made clear to his confidants that he had no plans to resurrect the “national government” formed in 2015. That would now be obvious since he has widened the investigations into the Central Bank bond racket. He has also made clear to his confidants that he would not allow any Sri Lanka Freedom Party (SLFP) parliamentarians to accept portfolios in the United National Front (UNF) government-led by the UNP.

That stance itself isolates President Sirisena from any further links with the UNF though he did lean towards it in the days ahead of the budget vote on the Presidency and Ministries under him.

It was like the last straw that broke the camel’s back. President Sirisena appears to be piqued by the stance the UNF took over issues on Sri Lanka before the UN Human Rights Council. His ire was particularly over not being kept informed that Sri Lanka was co-sponsoring a second resolution together with a core group. They were Britain, Canada, Germany, North Macedonia and Montenegro. The resolution called for the implementation of matters remaining from a 2015 resolution (30/1). Among other matters, it included the setting up of hybrid courts to probe alleged war crimes by troops and Tiger guerrillas. President Sirisena has also publicly declared that he did not recognise the latest resolution. His position is that the troops did not commit ‘war crimes’ though Tiger guerrillas did so.

It is now very clear that during the one-on-one meeting Opposition Leader Mahinda Rajapaksa had with Sirisena on Monday (March 11), he did not discuss the question of a candidate for the presidential election. This perhaps rekindled hopes in Sirisena that prospects still remain.

That is why, the SLFP’s National Media Committee Secretary Thilanga Sumathipala, had a brief from Sirisena. A close ally, he was called upon by Sirisena to set out the SLFP position on many recent developments at a news conference on Tuesday.

Talking of a presidential candidate, Sumathipala said, “We expect that the two parties (the SLFP and the SLPP) would join together and submit one candidate.”

If that indeed is President Sirisena’s position, which is the case, the prospects are zero. As revealed in these columns last week, the SLPP and its allies have agreed to back Gotabaya Rajapaksa, the former Defence Secretary. The move has also won the blessings of the family. This is why, as also revealed in these columns, Gotabaya Rajapaksa handed in documents to the US Embassy in Colombo on March 6 to renounce his citizenship. He has, however, taken back only his passport to travel to Los Angeles and left Colombo last Tuesday night. He has learnt that his papers have now been sent to Washington for processing by the different state agencies including the Internal Revenue Service, the Federal Bureau of Investigation and the State Department.

Last Tuesday, Mahinda Rajapaksa, the de facto leader of the SLPP, albeit the Joint Opposition, told a group of media personnel that he would select a presidential candidate who could win. He said an announcement would be made soon after the UNF makes known who its candidate is. This makes clear that a formal official announcement of an opposition candidate will not be made immediately. As reported in these columns last week, it is expected to be in either May or June.

Sources close to Gotabaya Rajapaksa said he had retained a law firm headed by a naturalised Indian national. This firm has been monitoring matters relating to his US citizenship in a bid to expedite the application to renounce it. That is by making available any material the US administration may require. Gotabaya Rajapaksa’s US visit is not without widespread speculation in Colombo over moves for a Sri Lankan to file action against Rajapaksa in US courts. “This is not a political process and is strictly procedural in keeping with the US laws,” the source said adding that “political moves will find no place.”

Another issue on which Sumathipala wanted the SLFP position made clear was last week’s talks for the formation of a common alliance with SLPP and its allies. He claimed that the two parties “came to an understanding” on 20 points “we discussed.”

“We decided to discuss it with our leadership. On the other hand, the SLPP contested this claim. An SLPP source who did not wish to be identified said “it is true we discussed the 20 points relating policy on various issues, but at no point did we reach an understanding on all of them. This is misleading.”

Sumathipala also confirmed what President Sirisena told his confidants. “We have no need to get back to a national government. We have not taken such a decision. We left such a government on October 26.  We have resolved not to go back.”

There were also contradictions in some of Sumathipala’s remarks which were aimed at reflecting President Sirisena’s position as SLFP leader. He said that the SLFP had taken a policy decision to refrain from voting during the second reading of the budget in Parliament. “If we defeated the budget, the President’s allocations would have been halted. “As a party we took a decision to support,” he said. However, the SLPP, whose members are in the parliamentary group with those in the SLFP, had a different story. They accused the SLFP of reneging on its promise, made at a parliamentary group meeting, to vote against the budget. President Sirisena had been absent from this meeting. SLPPers alleged that in the afternoon of the day of voting Sirisena had asked his MPs to vote for the budget. It was, as claimed, to prevent funds not being allocated to the presidency or ministries coming under it.

Sumathipala’s remarks voicing Sirisena’s latest position are clearly aimed at appeasing the SLPP. How much of an impact it would have on them, particularly in the wake of its accusations of many promises being given and broken thereafter, remains a critical question.

This is not altogether lost on President Sirisena. He has summoned a meeting of his SLFP parliamentarians for Tuesday night (April 2) to discuss a gamut of issues. An important one is the position the party would take when the final voting on the budget is due on Friday (April 5). This will be a key factor for the SLPP to decide on the future of the proposed common alliance. In fact, the next round of talks has been fixed for April 10 to enable the SLPP and its allies to determine whether they should go ahead or not. Either way, President Sirisena finds himself in a political dilemma.

Crisis in the SLFP

The SLFP which he heads is facing the threat of being divided in the middle. Sirisena, in fact, had a meeting with his onetime predecessor and former SLFP leader, Chandrika Bandaranaike Kumaratunga. He drove to her official residence in Torrington Square on March 12. Though no details of the discussion are known, it is said to centre on the SLFP and its future. A section of the party is locked in back-channel talks with the UNP. Another group is doing the same with the SLPP whilst a smaller number is backing Sirisena. The latter are urging Sirisena, in an eventuality, to become the SLFP candidate for the presidency. They say he had public support since he had waged war against drugs, bribery and corruption.

In the UNP, which leads the UNF, the question of a presidential candidate is yet to become a hot topic of discussion. That is not to say there is little interest. Other developments have given rise to wild speculation whether there would be other claimants for the candidature. One such instance is the possible emergence of Speaker Karu Jayasuriya. He has already been conferred the title Sasana Keerthi Sri Deshabimani by the Malwatte Chapter.

He was deluged with telephone calls some asking him whether he would be the presidential candidate. This was particularly after newspaper supplements on the award drew widespread public attention. “I will only accept such a candidature if my leader and the party ask me to,” he replied.

UNP deputy leader Sajith Premadasa also won a title days later. His title is Sasana Deepana Abimani Sri Lanka Jana Ranjana from the Malwatte Chapter. His award was also accompanied by newspaper supplements praising the honour. The two titles of honour, at least politically, placed them on the same level.

As is known, a decision on who the party’s presidential candidate will have to be made by the UNP’s Working Committee, the main policy making body. In accordance with the party constitution, the larger majority in the Committee are those named by the party leader.

This week’s political developments underscore greater significance in many respects. The widened investigations into the Central Bank bond racket are sure to snowball into the political spectrum and even become a campaign issue at the presidential election. President Sirisena’s own political future is getting more defined though how he will contest the presidential election remains a question. Even if he does not get the backing of the SLPP and its allies, he is laying the groundwork to fight it out alone with a list of his own achievements. For the UNF leader, Premier Ranil Wickremesinghe, becoming the official candidate is becoming imperative as the party is now set to gear its grassroots level machinery. After a lull in the Avurudhu season, the political tempo will rise. The question is whether the contestants are ready.