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Criminal proceedings against 10 suspects: AG seeks CJ’s nod
The Attorney General (AG) has requested the Chief Justice (CJ) to permit indictments to be filed at the permanent High Court-at-Bar against 10 suspects, including former Central Bank (CB) Governor Arjuna Mahendran, over the Treasury Bond (TB) scam.
AG Dappula de Livera requested the CJ to direct that criminal proceedings be instituted against former CB Governor Lakshman Arjun Mahendrean, former CB Deputy Governor Paththinige Samarasiri, Perpetual Treasuries Ltd (PTL) Managing Director Arjuna Joseph Aloysius, PTL Chief Executive Officer Kasun Oshadhee Palisena, PTL Chairman Jeffery Joseph Aloysius and PTL Directors Pushya Mithra Gunawardane, Chitta Ranjan Hulugalla, Muthuraja Surendran and Ajahn Gardiya Punchihewa.
Charges are to be filed against the suspects on 23 counts. These have been presented under the Public Property Act and Registered Stocks & Securities Ordinance.
The Charges to be filed include Conspiracy to commit Criminal Misappropriation in respect of TBs to the face value of Rs. 10.058 billion.
Mr Mahendran and Mr Samarasiri are also to be indicted for Criminal Breach of Trust in respect of TBs to the face value of Rs. 10.58 billion, causing a loss of Rs. 688,762,100 to the Government.
Former Deputy Governor Samarasiri is also accused of abetting the former CB Governor to commit Criminal Breach of Trust in respect of TBs to the face value of Rs. 10.058 billion.
PTL is to be charged with Criminal Misappropriation in respect of TBs to the face value of Rs. 5 billion and Insider Dealing.
All other suspects are to be accused of abetting PTL to commit Criminal Misappropriation and Insider Dealing.
Coordinating officer to the AG, State Counsel Nishara Jayaratne has noted that the above Charges have been fwormulated considering all the evidence presented during the Bond Commission Inquiry conducted by the Commission of Inquiry appointed by the President, and also considering the material disclosed during the investigation conducted by the Criminal Investigation Department (CID).
The Charges have been presented only in respect of the wrongdoing at the CB TB Auction on February 27, 2015.
“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, for the largest organised financial crime perpetrated in this country, by any person or persons, which had an impact on the financial markets and the economy of the country,” Ms Jayaratne stressed.
The AG’s Department has noted that more indictments are to be presented on the basis of evidence revealed at the Bond Commission Inquiry and investigations conducted by the CID.