Interpol “red notice” for Sri Lanka’s ex-c.bank chief over bond sale
Interpol has issued a red notice, a request to locate and provisionally arrest, Sri Lanka’s former central bank governor Arjuna Mahendran who is wanted in connection with an investigation into a bond sale.
President Maithripala Sirisena said in January that a presidential commission investigating 2015 bond sales had recommended legal action against Mahendran, a Sri Lankan-born Singapore citizen who was central bank governor at the time, and several others.
Opposition lawmakers have alleged the 2015 bond auction cost the state more than $1 billion because of rising borrowing costs.
“International police today issued a red notice for former central bank governor Arjuna Mahendran related to the investigation by the police criminal investigation department of the bond sale,” police said in a statement.
Mahendran was not immediately available for a comment and his whereabouts were not known.
He has denied wrongdoing.
A Sri Lankan court in February arrested the owner of dealer Perpetual Treasuries Ltd, Arjun Aloysius, who is also the son-in-law of Mahendran, and its chief executive, Kasun Palisena, on suspicion of involvement in the alleged scam.
Aloysius and Palisena have also denied any wrongdoing.
The presidential commission also recommended legal action against the then finance minister, Ravi Karunanayake.
He resigned from his portfolio in August. He has also denied wrongdoing.
The central bank said in January it had suspended four officers and taken disciplinary action against several others in connection with the allegations of irregularities in the 2015 government bond auction and it had initiated several legislative changes aimed at preventing irregularities arising in connection with future bond issues.
(Reuters)
Latest Headlines in Sri Lanka
- Sri Lanka President leads discussion on strengthening airport security and combating corruption December 28, 2024
- CAA imposes new maximum retail prices for canned fish effective today December 28, 2024
- Ex-Minister Manusha’s brother arrested in Rs. 3 million job scam December 28, 2024
- Mahinda Rajapaksa’s security chief Neville and son Yoshitha summoned to CID December 28, 2024
- Salochana Gamage arrested by CIABOC in Rs. 9 million bribery case December 28, 2024
This the only clever thing our senile prime minister has done employing Sri Lanka’s former central bank governor Arjuna Mahendran who is wanted in connection with an investigation into a bond sale.
Anymore clever ideas Ranil before you drop dead.
This is a futile exercise.
There are no charges against Mahendran in a court of law. He is alleged only to be absconding enquiry by CID.
Where is the evidence of Red Notice issued by Interpol?
These guys are cheating.
The CID will be better off drilling Central Bank officers who have been supporting Perpetual Trustees for many, many years commencing MR/Cabraal era.
Why is Cumrara Sami reluctant to purge Central Bank of all corrupt officers from top to bottom?
Is it because he used them when he was working with convicted Raj Rajarathnam?
The Singapore government will not extradite him if they consider there was no bond scam
In 2015, the Supreme Court dismissed the Fundamental Rights application against the much-publicised 30-year Treasury Bond issue of 26 February seeking an independent inquiry into the Central Bank Treasury Bond issue and the Bank’s Governor Arjuna Mahendran.
The move has effectively cleared both Governor Arjuna Mahendran and primary dealer Perpetual Treasuries and others sighted as respondents.
In dismissing the FR application filed by good governance activists Dr. G. Usvattearachchi, Dr. A.C. Visvalingam and Chandra Jayaratne, the Supreme Court said there was no legal basis to issue notice.
The petitioners in their application expressed the belief that the Rs. 1 billion 30-year Treasury Bond issue contained serious irregularities, lacked transparency and did not adhere to the accepted best practices of good governance and was possibly tainted by conflicts of interests and related party transactions.
The petitioners said that the Bond issue on 27 February by the Public Debt Department of the Central Bank lacked transparency and resulted in a “significant incremental unwarranted” cost for Sri Lanka.
The Counsel for respondent, Perpetual, submitted that the claimed loss to the Government by petitioners was imaginary.
In fact when court questioned the counsel for the petitioners as to how the alleged loss was calculated, he admitted that it was on the basis of an assumption that if the higher value would be accepted was advertised.
However, it was submitted by the counsel for Perpetual, with facts and figures obtained from the Central Bank, that out of the six 30-year bond auctions, this particular bond auction came at the lowest cost to the Government, calculated on the weighted average yield.
Stop playing politics with the best financial brain CBSL has ever had in its history. The Interpol Red Notice is a figment of the CID’s imagination.
In my view, before appointing Ex CB Guvnor, Ranil gave a statement in front of the parliament.
In that statement he clearly stated that, Arjuna is well known person with high capabilities of handling financial matters. Also he stated that he personally guarantee about him and his duties.
So, if PM taken such responsibility he should take a bow of his wrong decision and resign.
This is not a joke.
The main person who runs the government did a day light mistake and made a country in a real mess. Which allows to hike the taxes and burden the public.
Isn’t it fair to the PM to resign?
If he is a real clean man, then he should dissolve the parliament and step down with his government.
People in this country just killing time with those bad politicos and watching the country sliding down.
When are you all opening the eyes and request the PM to resign?
Note: This is not a political message, its a message from a public who like the country to stand firm.
Harrison and Lance have wonderful and valid comments on this subject.
The case against Arjuna M is purely political by someone who is hoping to perpetuate his stay in the big chair through political manipulation.
Arjuna M is a citizen of Singapore with whom SL signed a Free Trade Agreement; that shows how important they are.
Arjuna M will be protected by the State of Singapore unlike SL which hangs its citizens at the behest of foreign powers.
Arjuna M is innocent; he was doing his best to bail out a country which is in shit’s creek of debt.
The corruption in SL extends to all sectors including the judiciary; that’s why we are labelled in the TOP MOST 5 CORRUPT COUNTRIES in the world.
Please don’t waste time pursuing Arjuna M; be better off chasing corruption in CBSL under the rule of Cumarasamee who is a former employee of Rajaratnam.