Treasury bond scamsCOPE report holds Mahendran responsible
‘Good Governance’ MPs in last ditch-battle to defend their man
UNP to present alternative report disputing damning report
The Island draws fire for reporting committee proceedings
Parliamentary watchdog committee, COPE (Committee on Public
Enterprises), yesterday approved its Chairman’s report holding former
Central Bank governor Arjuna Mahendran responsible for Treasury bond
scandals. The report recommends legal action against those involved in
the scams and the recovery of losses from them, according to a senior
COPE member.
The COPE met around 9.30 am in Parliament yesterday, following heated
exchanges over the Mahendran issue the previous day, and the division
continued resulting in UNP members of the committee saying that they
would not agree with Chairman, JVP MP Sunil Handunnetti’s report. Of the
14 members of the COPE, who met yesterday, eight representing the UPFA
and the JVP endorsed the Chairman’s report. They are Mahindananda
Aluthgamage, Lakshman Seneviratne, Chandrasiri Gajadheera, Priyankara
Jayaratne, Lasantha Alagiyawanne, Weerakumara Dissanayake, Bimal
Ratnayake and Dr. Nalinda Jayatissa.
As they failed to secure majority to exonerate Mahendran of the treasury
bond scam or change the report of investigation, the five UNP Members,
Dr. Harsha de Silva, Ajith Perera, Sujeewa Serasinghe, Hector Appuhamy
and Harshana Rajakaruna said that they would submit an alternative
report of their own on the investigation, according to sources.
Sources said UNP Ministers Senasinghe and Perera openly faulted COPE
Chairman and Auditor General at yester’s meeting in a threatening
manner, demanding that they amend their findings. Minister Perera told
the Committee that the Auditor General was neither the God nor the
Buddha and others should not accept his word as the final. Perera became
silent only when other members pointed out that it was unbecoming of an
MP to threaten AG to change his report on the findings of an
investigation conducted by his department. They said such action
amounted to a punishable offence. Senasinghe wielding a photocopy of
page one of The Island newspaper, which reported the proceedings of
COPE on Thursday accused the COPE chairman of leaking the story to the
media.Chairman Handunnetti vehemently denied the allegation.
The Chairman’s report concludes that there have been irregularities and
malpractices of serious nature in the auctioning of treasury bonds from
February 2015 to May 2016.
The irregularities and malpractices during the said period with
Mahendran as the Governor of the Central Bank of Sri Lanka (CBSL) were
proved beyond a reasonable doubt and it was revealed that they had
caused the public and the international community to lose faith in
the CBSL.
The COPE report recommends that severe punitive action be taken against
those responsible for the bond scams. It also calls for the setting up
of a committee or any other mechanism to monitor the progress of the
implementation of the COPE recommendations and report it to Parliament.
Observing that Perpetual Treasuries company, owned by a relative of
Mahendran has made massive profits during the period in question, the
COPE report recommends that a special investigation be held into its
financial gains. If that institution’s profit making resulted in any
losses to the Central Bank, then the losses should be recovered from it,
the report says.
The report also recommends the creation of a new mechanism to prevent occurrence of similar incidents in the future.
After eight members of the COPE had endorsed the report by placing their
signatures thereon, the UNP MPs said that they would put out another
report on the same issue.
The five UNP members, COPE Chairman, Auditor General and the COPE
Secretarial staff stayed back after others had left the meeting
around 1.30 pm, according to sources.
Sources said the COPE Chairman’s report on the bond scams would be
presented to Parliament on Oct. 25 in spite of the UNP’s efforts to
scuttle it. Finalising of the UNP report on Treasury bond scams had been
postponed till Oct. 24, the senior COPE member said, adding that the
UNP’s attempt to absolve Mahendran of what he did had failed at the end
of 16-month long deliberations on the issue.











