Supreme Court dismisses FR case against Central Bank Governor

A fundamental rights petition seeking a more comprehensive investigation against Central Bank Governor Arjuna Mahendran over a controversial Treasury bond issue, was dismissed by the Supreme Court on Wednesday. The case filed by three good governance activists had sought to seek a direction that better governance procedures be implemented at the CB over the bond issue, and that a fresh probe by a more competent committee be initiated into the event. The case came up for hearing last week with counsel for all parties making submissions and further hearing was put off for today. Earlier Mr. Mahendran was cleared of any ‘direct’ involvement in the bond issue in a report issued by a 3-member committee appointed by the Prime Minister Ranil Wickremesinghe to probe the matter. However opposition politicians and good governance activists rejected the committee saying the members were lawyers affiliated to the PM’s United National Party and thus were biased. The issue in question relates to a February 2015 bond issue where the CB accepted Rs. 10 billion worth of bids having advertised that it was seeking subscriptions to only Rs. 1 billion worth of bonds. Allegations were levelled against the Governor of ‘insider information’ since his son-in-law’s firm won more than 50 per cent of the accepted bids. Mr. Mahendran has repeatedly denied any wrongdoing and said an independent committee at the CB decides on bond issues and auctions. – ENDS -