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AG alleges Rs. 68B defrauded in three bond scams; Trials-at-Bar begin
The Attorney General has filed indictments before three Trials-at-Bar regarding alleged scams that took place during three different Treasury Bond auctions during the term of the former Government.
The total amount of funds that had allegedly been defrauded during the three bond auctions amounts to Rs 68 billion, according to the AG’s Department.
Bond scam suspects leaving courts
Accordingly, the AG’s Department alleges that Rs 18 billion has been defrauded during the bond auction that took place on February 27, 2015 and Rs 36.98 billion defrauded during the auction on March 29, 2016. The amount defrauded at the auction held on March 31, 2016 is Rs 15 billion.
The AG has filed 24 indictments regarding the first Bond auction, 30 indictments on the second auction and 30 again on the third auction.
Former Finance Minister Ravi Karunanayake, former Central Bank Governor Arjun Mahendran and Perpetual Treasuries Director Arjun Aloysius are among those who have been indicted for criminal breach of trust over the alleged bond scams.
Mr Mahendran is now believed to be in Singapore and Attorney General Dappula de Livera has held talks with Singapore’s Attorney General on the possibility of extraditing him to face charges in Sri Lanka, Additional Solicitor General Palinda Ranasinghe told court on Thursday, when the case regarding the March 29 bond auction was taken up.
As information has come to light that another of the accused, Ajahn Gardiye Punchihewa, is now in Malaysia, the court has instructed that summons be issued to him through the Foreign Ministry.
Meanwhile, Senior Deputy Solicitor General Haripriya Jayasundara, who appeared for the AG with State Counsel Lakmini Girihagama, told court that the AG hoped to obtain another arrest warrant against Arjun Mahendran. The Court ordered the AG’s Department to inform it of the Singapore AG’s reply to the extradition request on May 5.
The first Trial-at-Bar comprises High Court Judges Champa Janaki Rajaratne, Damith Thotawatte and Namal Balalla. High Court Judges Damith Thotawatte, Manjula Thilakaratne and Mohammed Irshadeen make up the second Trial-at-Bar while the third comprises Amal Ranaraja, Namal Ballala and Adithya Patabendige.
The Prisons Department announced yesterday that PCR tests conducted on former minister Karunanayake and seven others remanded over the bond scam have been negative and hence they would be transferred to the Colombo Remand Prison.
These suspects are due to be produced before Court again on Tuesday, March 23.