No direct involvement by Mahendran-Committee

2015-04-19 09:32:51

The committee of eminent lawyers which inquired into the 30-year Treasury Bond issuance has said that Central Bank Governor Arjuna Mahendran had no direct role in deciding to accept bids over and above the one billion rupees stipulated in the 30-year bond tender and accept up to 10 billion rupees.

Press release issued by the Ministry of Policy Planning and Economic Affairs

The committee of eminent lawyers which inquired into the 30-year Treasury Bond issuance has made far reaching recommendations to ensure transparency and better governance at the Central Bank.

The three-member Committee had interviewed a large number of individuals, including the governor, officials from the Central Bank, primary dealers and Perpetual Treasuries.

Several deficiencies In the bank’s Public Debt Department (PDD) which handles all matters relating to servicing the domestic and foreign debt of the government of Sri Lanka was observed by the Committee.

“Since the PDD is dealing with the most sensitive information of the government, the committee is of the opinion that a proper supervisory and monitoring mechanism has to be immediately implemented with regard to its activities, “the committee said in its 19-page report.

However, the committee found That Governor Arjuna Mahendran had no direct role in deciding to accept bids over and above the one billion rupees stipulated in the 30-year bond tender and accept up to 10 billion rupees. The PDD had projected the government’s funding requirement as at 2nd March 2015 at 13.55 billion rupees.

“Even though the minutes of the Monetary Board number 4/2015 specifies to issue a 30-year treasury bond, the amount of the bond has not been decided by the Monetary Board (of which the governor is the chairman).

“This exercise is vested with the PDD as per the Operational Manual of the PDD. The decision to accept the excess amount has been taken by the Tender Board Committee that comprises eight members.

“The governor of Central Bank of Sri Lanka is not a member of the Tender Board Committee.”

The Committee concluded that there was no evidence to the effect that the governor had direct participation with regard to the activities of the PDD and the Tender Board Committee,

However, the Committee noted serious lapses on the part of the Bank of Ceylon (BOC) through whom Perpetual Treasuries had routed an unusually large amount of bids for the 30-year bond.

The Committee observed that the bidding pattern of Perpetual Treasuries was unusual and warranted a further investigation.

 It noted that the Bank of Ceylon should also carry out a forensic audit and seek explanations from its Chief Dealer and others on ad-hoc decisions risking a large amount of BOC funds involved in the 30- year bond transaction.

The three-member Committee that looked into the 30-year bond issue consisted:

Gamini Pitipana (Attorney-At-Law)
Mahesh Kalugampitiya (Attorney-At-Law)
Committee Member
Chandimal Mendis (Attorney-At-Law)
Committee Member

  Comments - 47

  • Citizen Sunday, 19 April 2015 15:11


    Reply : 45       119

    Sensible Monday, 20 April 2015 07:09

    The difference was a certain procedure was followed unlike before when such inquiries were not held.

    Reply : 4       13

    Perumal Sunday, 19 April 2015 15:13

    Please check the list of eminent lawyers

    Reply : 34       92

    Freebird Sunday, 19 April 2015 15:16

    Eminent layers were appointed by whom That is the now via DM Android App

    Reply : 17       67

    Sam Sunday, 19 April 2015 15:19

    Then who was the culprit?

    Reply : 11       90

    Abraham Sunday, 19 April 2015 15:55

    Brasil Rajapaksa

    Reply : 21       71

    sam Sunday, 19 April 2015 16:46

    Of course culprit is MR. Office Clarke of CB governers room, forgot to remove the framed picture of MR. Mahendran so the picture , got distracted and stressed. Then he called his son in law, to relieve the stress. While talking to him, accidentally said that they are willing to buy 10 Bil. eventhough offer is 1 Bil. So the committee unanimously decided MR as the culprit of this transaction....

    Reply : 20       69

    Bala Sunday, 19 April 2015 15:19

    Not unexpected Inquiry Report. Of course even if Governor not directly involved, then someone in the CB leaked out info and manouvred the increased issue and there must be a very thorough investigation how Perpetual got 50% at such high interest and why they went to BofC to borrow. Had they borrowed large amounts earlier from BofC. What was the colateral for the loan. Why did Aloysious resign from Perpetual and why hurried sale to Ishara. Far too many loose ends and drama like a thriller by John Grisham.

    Reply : 15       73

    Damien Sunday, 19 April 2015 15:20

    Wow we citizens surely had faith in this committee of UNP henchmen to come out with the truth.

    Reply : 32       77

    John Monday, 20 April 2015 10:58

    Agreed, but only now do we know we wonder how BILLIONS could have been fixed by the last regime and its erstwhile Governor?!

    Reply : 1       6

    Kumara Dharmarathne Sunday, 19 April 2015 15:23

    Was it credible committee? Why this committee was not appointed by the President? Central Bank Governor is supposed to be a good friend of Prime Minister and therefore it is not proper to appoint a committee by Prime Minister himself. Then the credibility is lost here. Why are these people acting like babies. Look like,for our Prime Minister there was no suitable and qualified person in 20 million people of Sri Lanka and he went all the way to Singapore to find this guy.(Singaporean) It is amazing.

    Reply : 20       60

    damien Sunday, 19 April 2015 15:42

    If Sri Lankans stopped being petty minded like you we would have a real shot at becoming even half as great as singapore. Focus on the positives...

    Reply : 35       37

    Ceasar Sunday, 19 April 2015 16:08

    Central bank comes under the prime ministers ministry so why should the president get involved?? If sl stops thinking like you we may one day be as great as Singapore ...

    Reply : 32       42

    sperumal Sunday, 19 April 2015 15:24

    What an unnecessary storm in a teacup!! Sri Lanka should avoid gutter politics...

    Reply : 20       45

    citizen kane Sunday, 19 April 2015 15:26

    The 3 eminent lawyers have done as good a job as any fat head financial professional out there…

    Reply : 14       44

    Raalahamy Sunday, 19 April 2015 15:48

    Ok . what this confirms is that the rotten corrupt internal process has continued even under the Yahapalanaya. Fix it asap and move on. All those interested in further investigation can have another committee.

    Reply : 6       45

    Anton S. Sunday, 19 April 2015 15:51

    What a shame. These lawyers should be shot with shit.

    Reply : 21       46

    MightyAnt Sunday, 19 April 2015 15:52

    This was expected. Just a eye wash. Hope the Singapore government will fix him. In Singapore corruption is not tolerated from top to bottom. That is why Singapore is what it is today. Ranil please pack you bags or keep them as it is after your visit to India. We do not want you.

    Reply : 21       43

    Kolitha Herath Sunday, 19 April 2015 15:53

    The appointment of this person is not ethical. Surely, a suitable Sri Lankan Citizen could have been found for the job.

    Reply : 16       37

    Ahmed Sunday, 19 April 2015 15:54

    Anyway you cannot clear it from the public mind. Well timed to release it when the PM was away.

    Reply : 11       25

    garawi Sunday, 19 April 2015 16:01

    That was quick! Yesterday he was banned from leaving the country and today he is acquitted! Hmmm! If only all other commissions are effective as this one we could get all culprits of former government behind bars!

    Reply : 10       29

    Premalal Sunday, 19 April 2015 16:04

    THE THREE STOOGES have found a fellow stooge not guilty. Yahapalanaya in its element. Mr. President wake up please.

    Reply : 14       37

    rukmal Sunday, 19 April 2015 17:14

    president giving his bro usd 100k salary at telecom. he is worse than ranil

    Reply : 14       33

    Ayio Sunday, 19 April 2015 16:06

    Ayio Serisena if the head of CB is not responsible then who is thought the new promises was to rid the old monkeys from the circus but now the new monkeys have started playing already jayawewa via DM Android App

    Reply : 13       26

    kanga Sunday, 19 April 2015 16:12

    Then Ranil is the culprit

    Reply : 16       38

    village guy Sunday, 19 April 2015 16:15

    Vow, YAHAPALANA investigation report is out. Ha Ha Haaaaaaaaaaaa!Ayyo Ponil.

    Reply : 15       33

    bandu Sunday, 19 April 2015 16:20

    Arjun and Arjuna sure ruined the new govt and whatever is said and done, Arjuna should go because of Arjun dealings - this one and his past dealings with previous govt.

    Reply : 11       25

    cyril n Sunday, 19 April 2015 16:27

    Further investigation may necessary on the activities of the Public debt dept, of th CB together with BOC about the manner they financed this large sum of money. There may some rotten fish from the previous regime still there.

    Reply : 13       24

    Henry Sunday, 19 April 2015 16:29

    Baduth haamudruwange - Naduth Haamudurwange - Shame on you PM.

    Reply : 13       34

    sam Sunday, 19 April 2015 16:34

    This is what we called " Horage Ammagen Pena Ahanawa Kiyala." Those committee members are bunch of Ranils henchmen...Sri Lankas biggest ever fraud gone unheard...

    Reply : 11       31

    Dinesh Sunday, 19 April 2015 16:41

    The best joke of the Yahapalanya. People will take care of the people who were supporting this guy.

    Reply : 12       31

    Das Sunday, 19 April 2015 16:45

    "................had no DIRECT role........................................."So, he had an INDIRECT role !!!!A good Whitewash.A governor who ignored a transaction of this magnitude and did not monitor it to prevent lapses should be sent home.

    Reply : 9       29

    npathirana Sunday, 19 April 2015 16:50

    Back to MR era. Even worse. Make somebody accountable. If that Committee accountable, sent those 8 people home and with penalties. Millions of Money lost, that has to be collected and Culprits whoever should be punished. Not only Politicians but all officials of Govt are responsible. Are the Govt servants are a very privileged lot ?This verdict is very fishy....

    Reply : 6       26

    perera Sunday, 19 April 2015 17:02

    Let us not weaken this govt and let the former rouges of MR regime take control of the country once again

    Reply : 25       19

    stupido Sunday, 19 April 2015 17:04

    Read the full report before making silly comments. This committee has recommended further investigation of the BoC dealing room process. .

    Reply : 17       22

    npathirana Sunday, 19 April 2015 17:05

    Thank you Ranil. We are now sure there is not much difference between Yahapalanaya and MR regime in most of the areas, but MR can deliver faster than you guys even without backing of West.

    Reply : 14       27

    Dhana Sunday, 19 April 2015 17:06


    Reply : 9       21

    sri lankans Sunday, 19 April 2015 17:08

    Wow. ... Never knew we had so many money market specialists following DLM News coverage..

    Reply : 10       19

    Naked Eye Sunday, 19 April 2015 17:09

    What a farce!!!. This was a foregone conclusion. RW appointed party lawyers to investigate.In sinhala such things are referred to as Kakille Rajjuruwange . .Naduthinduwa. When such crokide fidings are given. In addition to the Bribery Commission this scase should be handed over to the newly established Financial Fraude Division functioning under IGP.It is up to the opposition group in the Parliament to press for action by competant and independent body. President too has a responsibility as the people vated for him not for RW to bring foreign robbers to loot the country.

    Reply : 8       25

    Jude Sunday, 19 April 2015 17:17

    This is why I like Shakespeare who wrote: "The first thing we do is kill all the lawyers."

    Reply : 9       22

    Percy Sunday, 19 April 2015 17:17

    Socalled "Eminent Panel of Lawyers" would have cleared Mahendran, but not the People. In the minds of the people not only Mahendran, Ravi K. who appointed him and Ranil W. who defended him in Parliment even before his eminent panel of lawyers came out with the findings are not Cleared. The People will give them the right type of CLEARANCE at the next General Election. Percy

    Reply : 14       36

    katie Monday, 20 April 2015 09:20

    Can we know who the directors of Perpetual are?? as the 1st step???

    Reply : 1       7

    Silva Monday, 20 April 2015 11:01

    So, does this mean there is an in-direct involvement ? ? ? its a disgrace for a man of his caliber to hold on to this office still, please RW, MS send him home, let him first clear all allegations and then reinstate !

    Reply : 3       4

    sanju Monday, 20 April 2015 11:08

    SHAME SHAME SHAME !.And to think I voted for these people.Shame on me too !Mahendran MUST resign.That is the only way the Govt can save face.

    Reply : 3       5

    Malin Monday, 20 April 2015 15:23

    This is a big farce. Horage ammagen peena ahala! This result was no surprise. If Arjuna Mahendran is not directly involved as decided by the three musketeers of Ranil, it infers that he is indirectly involved. Instead of finding who is at fault of this BIG FRAUD, the panel has spent more time in how to put the house in order which was not their mandate.

    Reply : 0       1

    Senator Monday, 20 April 2015 22:59

    Ranil is a Lawyer himself.

    Reply : 0       0

    Prem Nath Tuesday, 21 April 2015 17:13

    O the Eminent Liars.

    Reply : 0       0

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