COPE report: Former CBSL Governor Arjuna Mahendran found accountable for bond scam

The COPE report on the controversial treasury bond issue of the Central Bank of Sri Lanka has found former Governor of the Central Bank Arjuna Mahendran accountable of the bond scam.

Chairman of COPE made the announcement when he tabled the report in Parliament today, October 28.

Chairman of the committee on Public Enterprises MP Sunil Handunnetti said, they probed the Central Bank Bond transactions for the years 2015 and 2016, and that the then Governor of the Central Bank of Sri Lanka had an influence or intervention with regard to the Treasury Bond Issue on February 27.

“The committee had observed the  facts and evidence that prove beyond any reasonable doubt that some transactions lack transparency and those actions had questioned the credibility of the Central Bank of Sri Lanka”, he said and addded “The committee had observed that one of the primary dealers in the bond transaction, Perpetual Treasuries had made shocking profits”.

He went on to note that the committee had recommended that punishments be imposed on those officials in the Central Bank and the institutions accountable for these transactions and that COPE recommends that the loss incurred by the country be reclaimed from those those officials and the institutions accountable for these transactions.

“COPE emphasises that necessary judicial processes need to be followed in this regard”, he added, Former Governor of the Central Bank of Sri Lanka Arjuna Mahendran should be held directly responsible for this controversial bond transaction.

Furthermore, he said that COPE recommends legal action be taken against those officials of the Central Bank. COPE recommends for the creation of a proper mechanism that would ensure transparency and credibility in such bond transactions. COPE recommends amendments be made to certain respective laws and regulation on this matter.

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