Aloysius alleges two bond scam suspects set scot-free by the prosecution

Published : 9:10 am  January 25, 2019 | No comments so far |  | 

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  • Claims they should be held responsible
  • Deputy Governor Nandalal Weerasinghe and Deputy Governor Ananda Silva have been set free without holding them for the scam

 

LATE-CITY-DM-1-35 By T.Farook Thajudeen   

 Arjun Aloysius, who was in remand in connection with the Central Bank bond fraud, alleged that the investigating officers of the Central Bank bond scam had set scot free two main suspects in the case without charging them though there was ample proof against them.  

 Mr. Aloysius, filing a motion before the Colombo Chief Magistrate Court through his instructing Attorney Amila Pieris yesterday had complained to Magistrate Lanka Jayaratna that the Prosecution who are conducting investigations into the scandal had set scot-free the Senior Deputy Governor Nandalal Weerasinghe and Deputy Governor Ananda Silva of the Central Bank without holding them for the scam while there are ample proofs against the two over their involvement into the scam.   


Counsel Sajitha Jayawardena appearing with Aravinda Gamage and Dayal Wanniarachchi instructed by Attorney Amila Pieris submitted that the Presidential Commission who inquired into the scam in their report had held that the Deputy Governor Silva and Weerasinghe who were very experienced officers of the Central Bank bore a responsibility to look after the interest of the Bank had remained silent and did not consult Mr. Mahendran to desist from the course of action or at the very least record their opposition to the direction he issued to the PDD. 


 It was also said that both Deputy Governors would have been aware that an Auction was underway when Mr. Mahendran invited them to accompany Mahendran to the PDD after the Corporate Management Committee meeting.  The report had emphasized that they should have advised Mr. Mahendran at that time that it was not proper for the Governor to visit the PDD during an auction.  The Counsel further said that this had been asserted by the Government Auditor Gamini Wijesinghe too who had accused the Deputy Governors for their involvements.   


The Counsel also said that the Commission had observed that due to the aforesaid passive attitude adopted by the two amounts to negligence and a breach of their responsibilities as Deputy Governors of the Central Bank.   
 Counsel Jayawardena pleaded the Court to instruct the prosecution to name the two Deputy Governors of the Central Bank to the pending case.  The Magistrate ordered the Counsel to make that request in court on the next date of inquiry of the case in the presence of the prosecution to take appropriate action..   


Arjuna Mahendran, a Singapore national of Sri Lankan origin, and his son – in- law Arjun Aloysius and Perpetual Treasuries Ltd CEO Kasun Palisena were charged under the state Property Act for manipulating of bond auctions in 2015 and 2016, causing losses of over $11 million to the state.   

 

Amila Pieris yesterday had complained to Magistrate Lanka Jayaratna that the Prosecution who are conducting investigations into the scandal had set scot-free the Senior Deputy Governor Nandalal Weerasinghe and Deputy Governor Ananda Silva of the Central Bank without holding them for the scam while there are ample proofs against the two over their involvement into the scam


 A presidential report into the high-profile bond scandal accused the former Central bank Governor Arjun Mahendran for insider trading.   


 The investigation also had recommended a forensic audit of the Central Bank during the Rajapaksa era, saying insider trading had occurred under his rule.    

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