Special High Court issues arrest warrant on Mahendran

The Special High Court trial-at-bar yesterday issued an arrest warrant against former Central Bank Governor Arjuna Mahendran to be arrested and produced before court as the main suspect in the controversial bond scam.  

The three-judge bench consisting of Special High Court Judges Sampath Abeykoon, Sampath Wijeratne and Champa Janaki Rajaratne ordered to issue the arrest warrant in the English language.

Arjuna Mahendran

Additional Solicitor General Priyantha Nawana, speaking on behalf of the Attorney General, had recently requested the Special High Court to issue an arrest warrant at the earliest possible to produce Mahendran before the court as summons cannot be handed over to him.  

On 24 July, the Special High Court ordered the Attorney General to submit an affidavit before 9 August, if there are any grounds for the request made to issue a warrant to arrest Mahendran, who has currently absconded. 

Accordingly, the court taking into account the responses made by the AG, decided to issue a warrant for Mahendran’s arrest.

The International Criminal Police Organisation (INTERPOL) too has issued a red notice on Mahendran.

In addition to Mahendran and Aloysius, the former Deputy Governor of the Central Bank P. Samarasiri, along with seven other directors of Perpetual Treasuries Limited (PTL), the primary dealer at the centre of the controversial Treasury Bond auction on 27 February 2015, have been indicted on 23 counts, including criminal misappropriation and criminal breach of trust under the Penal Code, Public Property Act, and the Registered Stocks and Securities Ordinance.

Lakshman Arjun Mahendran, CBSL’s former Deputy Governor Paththinige Samarasiri, Perpetual Treasuries Ltd., Arjun Joseph Aloysius, Kasun Oshadhee Palisena, PTL directors Jeffery Joseph Aloysius, Pushya Mithra Gunawardane, Chitta Ranjan Hulugalla, Muthuraja Surendran and Ajahn Gardier Punchiheva were indicted by the Attorney General in connection with the bond scam.

The charges are from the Treasury Bond auction held on 27 February 2015 (in respect of the face value of Rs. 10.058 billion) causing a Rs. 688 million loss to the Government.

The charges had been formulated based on evidence presented during the Bond Commission Inquiry, conducted by the Commission of Inquiry appointed by the President, and also considering the material disclosed during the investigation conducted by the CID. 

According to the Auditor General, the estimated avoidable loss suffered by the Government at this auction alone (on 27 February 2015) was approximately Rs. 688,762,100.

Charges have been filed against the suspects under Section 5 (1) of the Public Property Act. Indictments had been served on eight suspects who had been granted bail afterwards.