Notice of summons issued on former Governor Arjun Mahendran

Notice of summons was issued yesterday on former Governor Arjun Mahendran to appear before the Presidential Commission of Inquiry investigating into the Treasury bond issue.

The notice summoned former Governor Mahendran to appear before the Treasury Bond Commission on September 19, 2017. The notice was yesterday conveyed to Mahendran through a Fiscal officer.

Former Governor Mahendran gave statements to the CID assisting the Commission in March 2017.

Meanwhile, it was revealed yesterday that the Treasury Bond Commission had acquired evidence from 50 witnesses since its commencement. The witnesses include nearly 20 witnesses from the Central Bank of Sri Lanka. The other witnesses include, officials of the Employee’s Provident Fund, the Chief Dealer/Treasury Manager of Pan Asia Banking Corporation, the Chief Dealer/Treasury Manager of Bank of Ceylon, witnesses from companies which functioned as primary dealers, officials from the Treasury and three officers of the Perpetual Treasuries Limited.

The Treasury Bond Commission commenced its probe from February 21, 2017.

During yesterday’s proceedings, the Deputy Solicitor General suggested to the PTL CEO Kasun Palisena, the existence of a “ring” of chief dealers attached to the PTL, DFCC, NSB and elsewhere, selling government securities to the Employee’s Provident Fund. Palisena denied the allegation.

DSG Gunatilake also suggested that PTL’s outright sales reporting on February 2015 to March 2016, differed from what had appeared in the Lanka Secure System maintained by the Central Bank of Sri Lanka. DSG Gunatilake pointed out several discrepancies on reports relevant to dates June 03, 2015, June 11, 2015, September 29, 2015 and January 20, 2016. The discrepancies noted the amounts to Rs. 1 billion, 1 billion, 3 billion and 269 million respectively. Palisena in answer to DSG Gunatilake, said that these transactions were netted off transactions and that they did not appear in the Lanka Secure System. DSG Gunatilake begged to differ with Palisena.

The Commission will sit for hearing today (14) as well.

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