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Mahendran responsible for CB Bond scam: COPE report


28 October 2016 11:34 am - 53     - {{hitsCtrl.values.hits}}


The parliamentary Committee on Public Enterprises (COPE), in its final report on the investigation into the Central Bank bond controversy, held former Central Bank Governor Arjun Mahendran directly responsible for the questionable transaction and called for legal action.

It said there was evidence which gives credence to the allegation that Mr. Mahendran interfered and influenced the process.

After the report consisting of 55 pages supported by 2000 annexes was presented to Parliament, its Chairman JVP MP Sunil Handunnetti read out the recommendations agreed upon by all 26 members.

The COPE stated that there was a lack of transparency on the bond issue that took place on February 27 last year and that the credibility of the Central Bank had suffered as a result.

It recommended legal action on this matter and observed that bond trader, 'Perpetual Treasuries' had made a huge profit within a short span of time .

It also recommended legal investigations and stressed the need for Parliament to monitor the follow- up action by law enforcement agencies and carry out progress reviews.

COPE recommended a mechanism to prevent the repetition of such irregularities in the future and requested the President to set up a system to supervise the awarding of such tenders by the Central Bank.

It also recommended that the financial loss caused to the government should be recovered from those responsible and called for a separate investigation by the Central Bank to determine how Perpetual Treasuries made such a huge profit within such a short time.

COPE stressed the need to evolve fresh legislation to ensure transparency where such transactions are concerned leaving no room for the credibility of the Central Bank to be tarnished. (Kelum Bandara and Yohan Perera )



See full report in Sinhala


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  Comments - 53

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  • Citizen Friday, 28 October 2016 02:59 PM

    Mahendran told Central Bank officials that he was acting on instructions of the PM.

    hora Friday, 28 October 2016 01:18 PM

    Now lets see what action and how quickly it will be taken.It will be delayed for soooooo long that it will soon be forgotten. JVP please ensure that action will be taken. No trust in the main parties

    Rasheed Friday, 28 October 2016 01:33 PM

    This is because of Yahapalana Government only this fraud came to light with the help of COPE, how many COPE report went under the carpet during MR regime.

    Tanya Friday, 28 October 2016 01:37 PM

    Hilarious how some people are actually trying to find a way to turn this on MR. Please focus on what is happening right now! Dont be as pathetic as yahapalane

    Shehan Friday, 28 October 2016 01:42 PM

    Good governance? Ha ha.. Where was it when this non citizen was imported and implanted in this crucial position and being facilitated and defended by the PM himself?

    Joe rajah Friday, 28 October 2016 01:57 PM

    I dont fathom hoe people can rob the poor people money. Get the money back

    vithra Friday, 28 October 2016 02:14 PM

    Let the legal proceedings begin without any delay or interference with the judicial process from any quarter.

    fazeel Friday, 28 October 2016 02:23 PM

    The horse has bolted from the stable

    Appuhaamy Friday, 28 October 2016 02:25 PM

    Can we know who decided to stop the Private Placements and go for Public Auctions of the Bonds. Who got the balance allocation of the Bonds issued on this day ? How much profits these other Dealers made ?

    Danny Ocean Friday, 28 October 2016 02:27 PM

    Shouldn't it be a lot more serious? These guys robbed 20 million Sri Lankan's. Are we all a bunch of bloody buffaloes not to realize this?

    Pradeep Friday, 28 October 2016 02:27 PM

    people has forgot the past. during the last regime cope did not function at all. We know what happen to Lasantha due to disclosure of mig deal.

    vx06 Friday, 28 October 2016 02:33 PM

    PM forced him to go for that wedding., Check how many phone calls he made.,

    RM Friday, 28 October 2016 02:36 PM

    Where are our friends who were day dreaming of two cope reports are they still asleep ?

    ananda Friday, 28 October 2016 02:45 PM

    Well done COPE for the excellent job. investigate frauds during Cabrals period which was rampant at that time to the present. via DM Android App

    Saman Friday, 28 October 2016 12:55 PM

    People like Sunil Handuneththi made the difference. Hats off to the people who genuinely participated in this matter. This is just the report. Now its up-to the law enforcement to take action. This the part usually does not happen.

    Gayan Friday, 28 October 2016 03:19 PM

    The day Mr clean became Mr bleach. Trying to whitewash crooks.

    Gayan Friday, 28 October 2016 03:29 PM

    Steeling 10 million of our money is good govenence?

    Deen Friday, 28 October 2016 03:45 PM

    10 Million ! what made you to drop dozens of Zeros.

    Hora Friday, 28 October 2016 04:00 PM

    If this was any other country the PM would have had to resign immediately I think we all need to ask for it and go on the streets asking for it o

    Pf Friday, 28 October 2016 04:36 PM

    Immediate legal action should be taken against the culprits and recover money ASAP so that no need to increase VAT. via DM Android App

    kapila Friday, 28 October 2016 09:08 PM

    The credit should go to the COPE chairman Mr Sunil Handunetti via DM Android App

    Lion Saturday, 29 October 2016 06:37 AM

    This shows difference even though with so much of short comings. Was it possible during Rajapaksha regime? There were so many allegation against Nevard Cabral. There were lot of fake inquires, nothing saw the day light of the day. Every one was saying that P.M is shielding Mahaendran now every one is convinced it is not to be. its hilarious to see the corrupt lot, so called joint opposition is clamoring for a debt. During Rajapaksha regime this lot is keeping mum soloing what ever Rajapaksha throw at them. These slaves will be slaves of Rajapaksha for ever. They will not get out of that bondage.

    Nihal Amarasekera Saturday, 29 October 2016 07:01 AM

    No he is not, it is his friend. Your guess is as good as mine.

    kumara Saturday, 29 October 2016 09:28 AM

    thanks very much Mr sunil hadunhetti... superb job done by jvp... wish you all the best.... via DM Android App

    Janaka Saturday, 29 October 2016 12:04 PM

    I guess this robbery was well planed and placed this man imported from Singapore, while having thousands of our own countryman well qualified to be in this position, isn't it ??,,,, there should be a law in our country from now not to give such positions to foreigners for the sake of all Sri Lankan's...

    Reader Saturday, 29 October 2016 01:52 PM

    At the time of appointment many politicians incl UNPers had objected but PM recommended him. So PM must now explain.

    DGee Saturday, 29 October 2016 01:59 PM

    Dear President you did not give Mahendran an extension as you did not trust him while PM recommended. True that you won primarily with UNP votes but we as UNPers request you to take drastic action and recover losses to the country from him and the Primary dealer.

    saman Friday, 28 October 2016 12:20 PM

    Perpetual Treasuries was only primary dealer who got license in 2013 among many applicants. Nivard Cabral's sister was a board member of perpetual companies till 2015. They have connections on both sides.

    Kaboos Friday, 28 October 2016 11:43 AM

    Cope thanks for your excellent job. Good governance proves in action.

    DillonDP Friday, 28 October 2016 11:46 AM

    Well some progress i guess and instead of 21 million fine, which is negligible for the un fair profit they had made, if found guilty license of perpetual should also be cancelled.

    Chamith Friday, 28 October 2016 11:48 AM

    Common, this yapalana government allowed to this kind of massive fraud. now this, toy idiots going to pass blame on MR.... Even after this fraud identified, Rani tried to keep him as a CB government when if couldn't work appointed him as head of his advisers. So, big Hora is Ranil.Ranil has used money from this fraud for 2015 Aug general election. they put massive advertising campaign.

    dham Friday, 28 October 2016 11:55 AM

    No need to sideline with public funds get back every cent over paid to the son-in-law. via DM Android App

    Ravi Friday, 28 October 2016 11:57 AM

    He left the country yesterday.. catch me if you can.. go and fetch him RW..

    Tin Friday, 28 October 2016 12:01 PM

    Action on this will show if Yahapalanaya is true to its values or just another farce

    paduma Friday, 28 October 2016 12:07 PM

    RW and Shiranthi Rajapaksa are Children of first cousins. Thats why RW is not pushing against Shiranthi. We are the fools. Deals with in Deals.

    Madiya Friday, 28 October 2016 12:09 PM

    Now we know the culprit . Get the money back and reduce or remove the VAT.

    Sharon Friday, 28 October 2016 12:12 PM

    Thanks Sunil and the people who faught very hard with UNP COPE members to get the facts straight... Well done boys...

    Sharon Friday, 28 October 2016 12:15 PM

    Even the opposition is effective when MR is there...

    Civilian Friday, 28 October 2016 12:15 PM

    Mahinda supporters cannot say a word against this, at that time COPE never investigated anything against the rajapakshas or cabraal

    BR Friday, 28 October 2016 12:17 PM

    You can leave the country but you are not going to escape the long arm of the law.Specially not by going to a country like SINGAPORE where fraud is not tolerated at all.

    Kolla Friday, 28 October 2016 11:38 AM

    Vasudeva recently revealed why MR didn't allow JO to push against Mahendran harder. Read it (Namal and Alosiyas are freinds)

    Gulity Friday, 28 October 2016 12:21 PM

    Knowing before hand onlyone has been found gullty, the others din't flee.

    Menna Aththa Friday, 28 October 2016 12:22 PM

    Mahendran did this on the instructions of Ranil, Ravi Malik and Charitha.

    Sharon Friday, 28 October 2016 12:22 PM

    Now lets see whether Mr. Clean will step down like a gentleman or not... He made so many attempts to protect AM and even reappoint him. No confidence in his appointments...

    Sanjeewa Friday, 28 October 2016 12:23 PM

    guys, How the duty of Hadunnethi

    Madiya Friday, 28 October 2016 12:26 PM

    A black day for the UNP! The day Mr. Clean became Mr. Dirty. In a civilized country many politicians in the government directly connected to the central bank would have quit.

    dev Friday, 28 October 2016 12:26 PM

    Ha..ha..Mahendra PM's closest friend, and JO protest in the first place when Mahendra was given this position as he is foreigner

    Avisenna Friday, 28 October 2016 12:25 PM

    Awa Giya joke is on the Banker. All those who supported and Aided him must honorably resign. via DM Android App

    Aiyo Oh Friday, 28 October 2016 12:31 PM

    Action should be taken against the three lawyers who initially reported that there was no fraud involved. They tried to white wash this scam.

    Sandun Friday, 28 October 2016 12:37 PM

    Legal action against mahendran is the bare minimum. Ranil should take moral responsibility for parachuting a crook into such a responsible post.

    Praba Friday, 28 October 2016 12:40 PM

    Well done Mr Handunhetti.

    Mason Friday, 28 October 2016 12:49 PM

    We appreciate COPE for NOT leaning towards the PM, who from the very outset was shielding Arjuna Mahendran. Will AM come back and face the music or stay put abroad.He must be brought back and charged in Courts.Happy days ahead for team high bracket lawyers as AM has made billions !

    Pipi Friday, 28 October 2016 12:49 PM

    Who balmed MR? It was Vasudeva that criticized MR for having "deals" vasu is from JO by the way

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