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Obtaining foreign loan: Mahendran, Aloysius involved in another deal: PHU

6 February 2018 06:01 am - 17     - {{hitsCtrl.values.hits}}


The Pivithuru Hela Urumaya (PHU) yesterday alleged that former Central Bank (CB) Governor Arjuna Mahendran and his son-in-law Arjun Aloysius had caused a colossal loss to the country when obtaining a foreign loan to build the Pothuhera to Galagedara stretch of the Central Expressway.

He said the the government had obtained a loan of Rs. 138 billion from the Tokyo Mitsubishi bank of Japan to build the 32 kilometer stretch of the Central Expressway from Pothuhera to Galagedara.

“The Japanese bank's local agent who negotiated the deal to obtain the loan, was none other than Arjun Aloysius. All foreign loans should be approved by the CB monetary board, if the loan conditions are favourable. The monetary board was where Mr. Mahendran acted as the Chairman when he was the CB governor. For the loan of Rs. 138 billion, Sri Lanka has to pay Rs. 14 billion as the insurance. The insurance, which amounting to 10 percent of the loan, was obtained by the bank in case the government failed to pay the loan. This 10 percent is exorbitant compared to previous insurance rates of 5-10% and 2-5%," he told a news briefing.

He said neither Mr. Mahendran nor Mr. Aloysius would reveal the conflict of interest in the approval procedure of the loan or the fact that it was obtained when Aloysius was an agent of the Japanese bank.

He said this deal was the second chapter of the bond scam and requested President Maithripala Sirisena to appoint a presidential commission of inquiry in this regard without delay. (Lahiru Pothmulla)


Video by RM

  Comments - 17

  • rajitha7 Tuesday, 06 February 2018 06:19 AM

    Way overrated.

    Andy Capp Wednesday, 07 February 2018 08:47 AM

    Didn't they give you the Rs. 100/-

    Yeti Tuesday, 06 February 2018 06:27 AM

    Mr. Know-all rides again!!!

    Bond Tuesday, 06 February 2018 07:35 AM

    They appear to have beaten all your bosses' looting done in 9 years and deserve to be the next president!!!

    god Tuesday, 06 February 2018 06:49 AM

    hang them all via DM Android App

    hemantha Tuesday, 06 February 2018 09:00 AM

    Including 100 rupee collector who rob money of a foreigner

    Gunasiri Tuesday, 06 February 2018 07:26 AM

    If we have good investigative journalists we could minimize corruption to a great extent.

    dulan Tuesday, 06 February 2018 08:18 AM

    You have no shame to talk of deals of others when u yourself has cheated a foreigner and the case is ongoing.

    cheers Tuesday, 06 February 2018 08:22 AM

    Mara gahilak ne mun ghanne i mean UNP

    Kalu Sudda Tuesday, 06 February 2018 08:29 AM

    Another jerk that should be thrown in Jail.

    Mahinda Tuesday, 06 February 2018 08:46 AM

    Thank you ,In the mean time People want to know how about your deal of selling a Australian company and earned money with cheating the proprietor

    Shehan Tuesday, 06 February 2018 09:16 AM

    All rouges including you're self must punished lawfully Mr. Udaya.

    Lion Tuesday, 06 February 2018 01:25 PM

    They took loans but you rob cash of that Australian man

    pala Tuesday, 06 February 2018 01:33 PM

    good exposure ,present people in power used these guys every where they can plunder government coffers continue it to the end.

    REYNOLD ABEYKOON Tuesday, 06 February 2018 08:01 PM


    mali Wednesday, 07 February 2018 09:54 AM

    Why MR and family do not scream about bond scam?? Cos Mahendran helped them to deposit their illicit money in overseas accounts.

    pala Friday, 09 February 2018 09:58 PM

    good exposure,go ahead , find more details,and sue them

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