Bond scam: Arjuna Mahendran, still at large

Bond scam: Arjuna Mahendran, still at large

Bond scam: Arjuna Mahendran, still at large

Written by Zulfick Farzan

01 Jul, 2018 | 1:28 am

COLOMBO (News 1st) – The Chief suspect of the Central Bank Treasury Bond Scam, Arjuna Mahendran is still at large. Here is a look back at the recommendations made by the Bond Commission on action against Mahendran and those involved.

The Presidential Commission determined the Government of Sri Lanka suffered an avoidable loss of over 688 Million Rupees as the direct result of Arjuna Mahendran’s intervention in the Bond Auction on the 27th of February 2015. The Commission held Arjuna Mahendran liable and responsible for this loss.

The Commission also determined Mahendran’s direction to accept bids to the value of 10.058 Billion Rupees be accepted was improper, wrongful and mala fide for the collateral purpose of enabling Perpetual Treasuries Limited to obtain a high value of T-Bonds at the auction. It added that Mahendran provided inside information to PTL and acted in collusion with PTL.

The Commission recommended that appropriate proceedings be instituted against Mahendran and Perpetual Treasuries Ltd to recover this loss of over 688 Million Rupees. The Commission went on to note that in the event of a conviction being entered by a learned Magistrate after Summary Trial in such a Prosecution, a fine which is twice the value of 688 Million must be imposed on PTL.

The Beneficial Owner of Perpetual Treasuries Limited Arjun Aloysius and its CEO Kasun Palisena were arrested and remanded over this Treasury Bond Scam. However, Former Central Bank Governor Arjuna Mahendran as well those are alleged to be behind this scam are still scot-free.

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