The Colombo Telegraph has managed to get a copy of the draft report by the Committee Chairman Sunil Handunneththi, which has been endorsed by majority of the members, except for the UNP members in the committee. The report will be presented in Parliament this week.
COPE in its final report on the investigations into the Treasury Bond scam has ruled that Mahendran is ‘directly responsible’ for the 2015 and 2016 bond scams.
“Arjuna Mahendran is directly responsible in the 2015 – 2016 bond transactions, and therefore, legal action must be taken against him and the other officials who were involved in the transaction and steps must be taken to recover the loss from him,” the report by COPE Chairman Sunil Handunneththi said.
In his report, Handunneththi has also recommended that a mechanism be put in place to ensure the transparency of such transactions in future, and safeguard the confidence of the Central Bank.
The COPE report has also recommended that a law enforcement agency must carry out an investigation into Perpetual Treasuries Limited and how it received undue advantage as a primary dealer from the Central Bank.
“Investigations must also be conducted as to how Perpetual Treasuries Limited recorded a very high profit in a relatively short period of time,” the report by Handunneththi said.
The COPE report, which was drafted after months of investigations and evidence gathering, has not been signed by the UNP members in COPE, who have announced that they will issue a separate report on the Treasury bond scandal, in their effort to safeguard Mahendran despite his direct role in the scam.
Perpetual Treasuries Limited is linked to Mahendran’s son-in-law, Arjun Aloysius. Perpetual Treasuries recorded a profit of Rs. 5.1 billion for the year ending March 2016, an increase of 430% in profits in comparison to the previous year.