More charges against Arjuna Mahendran

More charges against Arjuna Mahendran

Written by Staff Writer

09 Jul, 2018 | 10:35 pm

Colombo (News1st) : Information has come to light that fmr. Central Bank Governor Arjuna Mahendran may have been involved in a financial irregularity when he held a position in the government over a decade ago. At present, a ‘Red Notice’ has been issued for the arrest of Mahendran over his alleged connection to the Central Bank bond scam.

MP Vasudeva Nanayakkara has addressed a letter to several high ranking state officials including Inspector General of Police and the Deputy IGPs of the Criminal Investigation Department and the Financial Crimes Investigation Division.

In this letter, Nanayakkara reveals details of an incident involving the former Central Bank Governor between 2001 and 2004.  During this period, Arjuna Mahendan had served as the Chairman and Director General of the Board of Investment. Vasudeva Nanayakkara had filed a Fundamental Rights Petition alleging that Mahendran had been involved in an irregular transaction in August 2002 which involved the sale of 8 acres of land which belonged to the Ceylon Petroleum Corporation, along with a 90% stake of Lanka Marine Services to a private company.

Arjuna Mahendran has been cited as a respondent in this petition along with former President Chandrika Bandaranaike Kumaratunga, as-well-as 28 others. Having considered the petition, the Supreme Court canceled the transaction and further ordered that the revenue that was lost from the transaction be recovered. The Bribery Commission and Attorney General were ordered to take further action in this regard.

In his letter, MP Nanayakkara has pointed out that Mahendran had unlawfully provided a tax concession to the private company involved in the transaction. Notwithstanding all of this information being directed to the Supreme Court, Nanayakkara states that Prime Minister Ranil Wickremesinghe had appointed Mahendran as the Governor of the Central Bank. Nanayakkara states that pursuant to the Prime Minister’s applying pressure on the Chairman of the Sri Lanka Ports Authority he had signed the deal.

Although former President Chandrika Banadaranaike Kumaratunga had signed the transfer papers for the property within the port to be sold for Rs. 1,119 million, the treasury had not received these funds.


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