Colombo Telegraph

Sirisena Appoints Presidential Commission To Investigate Bond Scam

As promised last week, President Maithripala Sirisena has today appointed a three member special presidential commission to investigate the bond scam at the Central Bank, allegedly committed by ex-Governor Arjuna Mahendran.

The commissioners comprises: Supreme Court Judges Kankani Tantri Chitrasiri, Prasanna Sujeewa Jayawardena and retired deputy Auditor General Velupillai Kandasamy.

In a tweet on Sunday, Sirisena said, “I will appoint a Special Presidential Commission of Inquiry this week to investigate the Central Bank bond issue and recommend actions.”

In November last year, Sirisena said that the judiciary must decide on the bond scam, and it was not a matter to be interfered by politicians.

According to the Auditor General the country lost Rs. 1.6 billion due to the scam at the Central Bank which occurred during the term of Mahendran.

A 55 page report by COPE in October found Mahendran guilty as he was directly responsible for the Treasury Bond transactions at Central Bank in 2015 and 2016. The scam resulted in the country losing Rs. 1.6 billion, while primary dealer of Central Bank, Perpetual Treasuries Limited, which is linked to Mahendran’s son-in-law Arjun Aloysius, recorded a profit of Rs. 5 billion for the year that ended in March 2016, an increase of 430% in profits in comparison to the previous year at the company.

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