CID files B Report over bond scam, cites Mahendran, Aloysius

2 February 2018 01:45 pm - 36     - {{hitsCtrl.values.hits}}

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Filing the first ‘B’ report in Court on its investigation into the CB bond scam, the CID on Friday cited former Central Bank Governor Arjuna Mahendran, Perpetual Treasuries Ltd., (PTL) owner Arjun Aloysius, PTL Chief Executive Officer Kasun Palisena and PTL as suspects in the main magisterial inquiry.

Appearing for the CID, Senior Additional Solicitor General Yasantha Kodagoda PC told Court that the facts presented in the report were based on the prima facie appearance of the material investigated so far by the CID.

SASG Kodagoda said once the prosecution found suspects liable, in connection with the allegations, beyond reasonable doubt, the CID was legally obliged to arrest and produce the suspects in Court in due course.

CID in its report stated that Arjuna Mahendran was liable in connection with an estimated Rs.688 million financial loss caused to the Government at bond auction on February 27, 2015.

It levelled criminal charges against Arjuna Mahendran on two counts, ‘Criminal Breach of Trust’ and ‘Criminal Misappropriation’ by way of deliberate violation of the due process at the Central Bank and causing a huge financial loss to the Government.

Above allegations were levelled under the Section 5(1) of the Public Property Act, and Section 386/389/391 of the Penal Code.

PTL's de facto owner Arjun Aloysius was also made liable for ‘Conspiring’ to commit the two offences of Criminal Breach of Trust and Criminal Misappropriation with Arjuna Mahendran at the bond auction on February 27, 2015 under Section 113(a), 386, 389 and 391 of the Penal Code and the Section 5(1) of the Public Property Act.

The CID also made Arjun Aloysius and PTL CEO Kasun Palisena liable in the bond issue under the offence of ‘Abetment’ (Section 102 of the Penal Code).

‘Perpetual Treasuries Ltd’ (Arjun Aloysius and Kasun Palisena) were also made liable by the CID for engaging in illegal ‘insider dealing’ by obtaining price sensitive inside information, which is deemed to be a punishable and prohibited conduct under Section 56 (1) of the Registered Stocks and Securities Ordinance and the Code of Conduct for Primary Dealers by the CBSL. (Liable to five years of imprisonment).

In the 'B' report, the CID alleged that Arjuna Mahendran had also helped PTL to get insider information and therefore made him also liable under the offence of ‘Abetment’ for ‘insider dealing’.

On behalf of the CID, SASG Kodagoda PC also sought nine Court orders pertaining to the further magisterial inquiry of the CID under the Section 124 of the Criminal Procedure Code.

Acceding to all requests, Colombo Fort Magistrate Lanka Jayaratne imposed a foreign travel ban on Arjun Aloysius and directed the Immigration Department to inform the CID no sooner Arjuna Mahendran arrives in Sri Lanka. It was revealed that Mr. Mahendran, who is a Singapore citizen was currently residing in there.

SASG Kodagoda sought a court order to direct the Monetary Board not to lift its suspension order on two RTGS accounts in which PTL as a primary dealer transacted in the Primary and Secondary Markets in Government securities. Those two RTGS accounts has a balance of Rs.9.1 billion belonging to PTL.

The Fort Magistrate also ordered two PTL officials -- W. Jesudasan and Finance Manager N. Nadeeka Dilhani to hand over the initial documents pertaining to the bond transactions to the CID with no further delay.

The Magistrate also made a special order suspending PTL from the transfer, the sale, gifting, investing or transacting using its assets or funds with any party. The Magistrate made this order based on the prosecution’s observation that there is a possibility of moving the PTL’s assets to third parties to forestall any potential future legal confiscation.

Acceding to the CID’ s request to question Arjuna Mahendran over the allegations, the Fort Magistrate ordered Mahendran to report to the CID before February 15, 2018 and directed that the court order be sent via Singapore International Police to Mr. Mahendran's residence.

Court also directed PTL officials -- W. Jesudasan and Finance Manager N. Nadeeka Dilhani to provide the relevant detailed documents pertaining to every primary and secondary market bond transaction of PTL to the CID with immediate effect.

SASG Kodagoda also sought court orders to obtain a detailed list of PTL’s acquisition of assets using the profits gained in bond transactions in the recent past.

SASG Kodagoda told court, “People were involved in colluding not due to their generosity towards PTL, but as they had been bribed to do so.”

The Fort Magistrate also directed the secretary of the Presidential Commission of Inquiry, to provide all collected materials (phones and computers) it had obtained during its inquiry and investigation to the CID for further magisterial inquiry.

A Court order was also issued to the CBSL Governor, Non Banking Financial Institutions Supervision Director and the Director of the CBSL Financial Intelligence Unit to prepare a comprehensive forensic report on the bond transactions since February 27, 2015 to date and hand it over to the CID without delay.

Senior Additional Solicitor General Yasantha Kodagoda, Deputy Solicitor General Haripriya Jayasundara, Senior State Counsel Lakmini Girihagama, Director of the CID Shani Abeysekara, Deputy Director SP Ampavila and SI Jayaweera appeared for the prosecution.

 

‘Court Orders given by the Fort Magistrate Lanka Jayaratne’

- Foreign travel ban on Arjun Aloysius

- Directs Immigration Department to inform the CID about Arjuna Mahendran upon his arrival in Sri Lanka

- Monetary Board directed not to lift its suspension order on two RTGS accounts in which PTL as a primary dealer transacted in Primary Market and the Secondary Market in Government securities

- Officials of PTL ordered to hand over the initial documents pertaining to Bond transactions to the CID with no deliberate further delay

- Special order suspending PTL from transfer, sale, gift, investment or transacting its assets or funds with any party

- Mahendran ordered to appear before the CID before February 15, 2018 and the notice about the court order to be sent via Singapore International Police to the residence of Mahendran

- Officials of PTL directed to provide the relevant detailed documents pertaining to every primary and secondary market bond transaction of PTL to the CID with immediate effect

-Order to obtain a detailed list of PTL’s acquisition of assets using the profits gained in bond transactions during February 2015 to March 2016

- Secretary of the Presidential Commission of Bond Inquiry, directed to provide all collected material (phones and computers) at the Commission’s inquiry to the CID for further magisterial inquiry

- CBSL ordered to prepare a comprehensive forensic report on the bond transactions since February 27, 2015 to date and hand it over to the CID without delay

(Shehan Chamika Silva)

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  Comments - 36

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  • Appachchimalaa Friday, 02 February 2018 02:03 PM

    The pair met in the dinner table but never spoken about " business" , according to the evidence given.

    ase Friday, 02 February 2018 02:46 PM

    so what is now ?? did we saw or some created a Tsunami in a tee cup ??

    Gayan Friday, 02 February 2018 03:01 PM

    Good luck getting Mahendran from Singapore.

    Kavin Friday, 02 February 2018 09:50 PM

    Mark my word. Singapore would never extradite Mahendran to Sri Lanka because Singapore has Jaffna connection spanning over 100 years.

    Sunil Friday, 02 February 2018 03:31 PM

    Bring in the bribery cases also very soon.

    Good News Friday, 02 February 2018 03:35 PM

    Good news indeed.

    shanthapriya Friday, 02 February 2018 03:52 PM

    If Mahendran appear before 10th Feb, Some 400,000 additional votes for UNP

    concern Friday, 02 February 2018 07:24 PM

    Yes. After getting the votes he will be released of all charges. That's how corrupt govt works.

    Samy Friday, 02 February 2018 03:55 PM

    Waiting for the other B Reports too.

    jaliya Friday, 02 February 2018 03:56 PM

    We need to post the "B"report in public domain. It certainly be interesting to read the findings of the investigation after all its the public will have to eat up the expenses incur on these court cases. Let's not celebrate yet we still have a long ways from the conclusion. Like MS said this may be another Gimmick ........... that's what MS's attorney says after a long phone conversation in English.

    C.K.Lankaputhra Friday, 02 February 2018 03:57 PM

    What about the culprits in other scams. Not in a hurry so much. Isn't it?

    BUSHEL Friday, 02 February 2018 09:09 PM

    if that is the biggest worry leave Mahendran and catch other culprits

    Amaris Friday, 02 February 2018 03:57 PM

    elakiri

    manju Friday, 02 February 2018 04:29 PM

    An election gift from PM to the people of this nation.

    ananda Friday, 02 February 2018 04:35 PM

    Good luck jail the duo for what they have committed as Mahendran shat wholesale the trust placed on him as the governor. via DM Android App

    Gamaya Friday, 02 February 2018 04:44 PM

    Ask Ranil if Mahendran will ever come back to Sri Lanka and if there is ever a possibility of getting him here.For Ranil to have gone to the extent of appinting him as the Governor of the Central Bank when even the President has objected to this appointment there must have been some pull to appoint him.

    Park Friday, 02 February 2018 05:05 PM

    We all know that Mahendran and Aloysius have committed crimes. If the B report was issued due to the pressure of the Secretary to the President, which means pressure from the President's office, then its wrong. If this was done following the normal legal procedure then its ok. Even if the normal procedure was followed, it is clear once again as in the case of protecting Gotabaya, President is getting involved directly with the Judiciary and/or legal process in the country which is also a crime.

    Sharon Friday, 02 February 2018 05:12 PM

    How about Ravi, Ranil, Malik, etc.?

    BUSHEL Friday, 02 February 2018 09:10 PM

    yes ..correct

    nick Friday, 02 February 2018 05:13 PM

    another drama before election via DM Android App

    Ella Friday, 02 February 2018 05:15 PM

    Then Gamaya why did the president appoint him with his signature on the letter?

    Kadiya Saturday, 03 February 2018 07:40 AM

    Because the President had a premonition that this bugger was going to rob the country!!!!!!!!!

    Kadiya Saturday, 03 February 2018 08:39 PM

    I meant that when someone recommends a good servant and you recruit her/him how on earth do you know that one day she' he will clean your house and vanish?

    Pala Friday, 02 February 2018 05:28 PM

    If AG won't submit complaint against ranil kabeer,malik and others whose names appeared as wrong doers ,civil society fellas who deceived us promising just society should come forward and sue them in the courts.

    Bandula Kendaragama Friday, 02 February 2018 05:31 PM

    This is very good news. Maximum punishment should be given for cheating, stealing money belongs to poor people, and lying to the country. They are Royal Thieves.

    Dp Friday, 02 February 2018 09:42 PM

    Ranil had is buddy out or the island before court proceedings.now how will you bring back a Singaporean??. Happy hunting..

    dharma Friday, 02 February 2018 06:46 PM

    MR mahadran must go to CID then you will be remanded, please tell mr Ranil was behind you,

    Sincere Friday, 02 February 2018 06:58 PM

    What about the emergency supplementary estimate to expand the prison hospital and equip same with state of the art ammeties?

    Ceylon Friday, 02 February 2018 07:27 PM

    This two theives made billions and paid billions.

    Mason Friday, 02 February 2018 07:36 PM

    The CID will have to investigate before they could arrest two involved. The big one is in Singapore and will not return to have his neck in the noose. In his absence can a successful prosecution be done. There appears to be a hurry in the "B" Report filing, and can see the hidden hand pushing it to get votes for his party.

    Ceylon Friday, 02 February 2018 08:18 PM

    According to atorney ajith petera,lanka takes 17 years to finish a case.many of them and othets can hear the judgement from hell.

    ja1962 Friday, 02 February 2018 08:19 PM

    Now no one can discus this in parliment

    Yeti Saturday, 03 February 2018 07:43 AM

    They can find them guilty and they can put them away for life but the JO will not be satisfied if somehow the PM is not roped into this scam guilty or not!!!!!

    RAK Saturday, 03 February 2018 07:55 AM

    So the bigwig policticos are scot free ?

    G.M. Jayawardena Saturday, 03 February 2018 10:03 PM

    Nothing will happen to these two because their involvement for the loss can not be proved..their actions were in line with the normal practice of business... but the opportunity was manipulated by a 3rd party for which they are not responsible...

    c.mahendran Sunday, 11 March 2018 09:15 PM

    all this b report saga, is the creation of an arrogant presidency.those who cooked up the b report on the bond scam will learn to their cost, that the law above all is the ultimate arbiter ,not men in important positions.


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