Bond scams: AG asks acting IGP to obtain warrants, arrest Ravi K and 11 others
By A.J.A Abeynayake-March 3, 2020, 10:28 pm
Attorney General Dappula de Livera PC yesterday instructed Acting DIG C. D. Wickramaratne to obtain warrants to arrest former MP Ravi Karunanayake, former CBSL Governor, Arjuna Mahendran and 10 others on misappropriation of Rs. 51.98 billion of public funds during two Treasury Bond auctions in 2016.
Wickramaratne was also instructed to record statements from the aforesaid persons on the treasury bond auctions on 29 March 2016 and 31 March 2016. Copies of their statements should immediately be submitted to the Attorney General.
The 12 suspects are former MP Sandesh Ravindra Karunanayake, former CBSL Governor, Lakshman Arjuna Mahendran, owner of Perpetual Treasuries Limited (PTL) Arjun Joseph Aloysius, PTL Chief dealer Kasun Palisena, PTL Chairman Geoffrey Joseph Aloysius, PTL directors Chitta Ranjan Hulugalle, Muthuraja Surendran, Ajahn GardiyaPunchihewa, former head of the Public Debt Department of the Central Bank of Sri Lanka, Buddhika Sarathchandra, Sangarapille Padumanathan, former EPF Bond Dealer Indika Saman Kumara and PTL.
The Attorney General issued the instruction to acting IGP after considering investigation reports that said the suspects had violated Offences Against Public Property Act (No. 12 of 1982) and sections 386 and 398 of the Penal Code by misappropriating Rs. 36.98 billion and Rs. 15 billion, respectively, during bond auctions on 29 March 2016 and 31 March 2016.
The Attorney General has informed the acting IGP that there is a reasonable doubt that the suspects engaged in market manipulation by violating the code of conduct introduced by the CBSL for primary bond dealers, which should be read with section 56. A (1) of the registered stock and securities ordinance.
Former MP Sandesh Ravindra Karunanayake can be named a respondent to six offenses under the Offenses Against Public Property Act, which should be read with sections 113. B, 102 and 386 of the Penal Code, the AG has said. Lakshman Arjuna Mahendran can be named a respondent as regards four offences. Copies of the Attorney General's instructions have been sent to Magistrate of the Fort Magistrate’s Court, DIG in charge of the CID and its Director.
