Thursday 29 March 2018

Placing ‘Bond Report’ in court ‘illegal’: says Gamini Marapana PC



By Shehan Chamika Silva

Gamini Marapana PC who appeared for Arjun Aloysius and Kasun Palisena in the revision bail application filed before the Court of Appeal, today challenged the placing of ‘Bond report’ into the magisterial inquiry by the prosecution as it was inadmissible in court by law. Therefore, the materials, based on which the Fort Magistrate had given the bail order on suspects, cannot be regarded as evidence.


He was of the view that the insertion of the ‘bond report’ by the prosecution had prejudiced the court in a way of contaminating the magistrate’s mind against his clients to rebut the 'presumption of innocence' that his clients are entitled by the law.


At the onset of the submission, President’s Counsel Gamini Marapana who supported the revision bail application filed on behalf of Arjun Aloysius and Kasun Palisena, drew the court attention to consider over the repercussions sustained by his clients due to the Presidential Commission of Inquiry into the bond controversy as his client was almost tried by the Media.


Mr. Marapana was of the view that the prosecution in the magisterial inquiry had attempted to link the Public Property Act for a simple reason so that the Bail Act cannot be applied in the inquiry with regard to the suspects. He said it was clear abuse of law to lockup his client, as there was no danger of his client fleeing from the country.


Mr. Marapana reasoned that the 1982 Public Property Act (PPA) was introduced during a period where a lot of terrorist activities were prevalent and therefore it gave court the provision to safe guard the public properties by imposing heavy sanctions on culprits. He said that the PPA is now being used merely to lockup people by the prosecutions.


Mr. Marapana formulated his main legal argument in the backdrop of the legal concept of the Rule of Law considering the notion of the ‘presumption of innocence’.


Mr. Marapana challenged the inclusion of the Presidential Commission of Inquiry’s report on bond issue into the magisterial inquiry at the Fort Magistrate’s court by the prosecution.


He said, even though, the Attorney General can initiate criminal actions against individuals based on the materials transpired during the commission’s inquiry under the section 24 of the Commission’s inquiry Act, the materials of the Commission cannot be regarded as evidence in the court proceedings.


Elaborating on the legal nature of such Commissions, Mr. Marapana was of the view that commission’s materials are inadmissible in the court of law as commissions are not identified as judicial or quasi judicial body by the law.


Citing several previous Supreme Court judgments in connection with the nature of such commissions’ reports and recommendations, he said ‘a report of a Commission’ will not be regarded as evidence in any court according to the law. Thereby, he challenged prosecution placing the ‘Bond report’ into the magisterial inquiry and said ‘placing the report it self is illegal’.


He contested that the material (bond report) on which the Magistrate had given the bail order is inadmissible in court since, the report of a commission cannot be taken as evidence in court according to the law.


Citing several precedents, Mr. Marapana argued that commission’s recommendations have no consequential effect in nature; hence its findings or the report has no legal or binding effect by the court of law.


 ‘The reason behind placing bond commission’s report in Magistrate’s court by the state (prosecution) was to prejudice the court contaminating the mind of the Judge against the suspects’ Mr. Marapana said.


 He also said that the Magistrate in her bail order had also quoted the bond report frequently by citing various findings of the Commission’s inquiry, hence, the illegal inclusion of the bond report had flawed the entire magisterial inquiry.


 Mr. Marapana in his submission also contested the inclusion of the Public Property Act into the incident. He said that under the PPA, the public property is identified as a movable property, however, the allegations levelled against Arjuna Mahendran was in respect of criminally misappropriating and breaching the trust over a ‘duty’ assigned upon him (duty to collect borrowings for the government), therefore, the offence doesn’t fall under the Public Property Act.


Thereby, he requested the court to issue notices to the respondents of the revision petition and also requested for an interim relief to be given granting bail for his clients.


 In the meantime, Additional Solicitor General Yasantha Kodgoda PC was also present in the court of appeal while Mr. Marapana was submitting his arguments and addressing the court, ASG Kodagoda said that he also wishes to reply petitioner’s submission as it was relating to the legality of the magisterial inquiry and also wishes to apprise on the legal jurisdiction of the court to hear the petition.


However, at that moment,  the court was running out of time, hence, bench comprising Justice Shiran Gunaratne and Prithi Padman Surasena (President) re-fixed the further submission for May 18, 2018.


President’s Counsel Gamini Marapana and President’s Counsel Kalinga Indatissa appeared for the petitioners.


Earlier, the Fort Magistrate remanded the suspects considering the allegations levelled against them under the Public Property Act. And later, the suspects went to the High Court as the magistrate cannot release them on bail as per the PPA, where one who misappropriated public property causing more than Rs. 25, 000 damage to the state has no bail relief unless exceptional circumstances or by a high court judge.


However, Colombo High Court also refused to grant bail on suspects set a siding the suspects’ petitions. As a result, the suspects filed a revision bail petition in Court of Appeal to revise the bail order of the Magistrate and the decision of the High Court.

Friday 16 March 2018

Arrest warrant issued on Mahendran




- Sufficient grounds to believe suspect absconding: Fort Magistrate

- Aloysius and Palisena re-remanded till March 29

By Shehan Chamika Silva

Drawing the consideration based on the sufficient materials filed in court, Fort Magistrate Lanka Jayaratne yesterday issued an arrest warrant on former CBSL Governor Arjuna Lakshman Mahendran as he seems to be absconding the court and unlikely to be obeyed with further court notices that to appear before the CID.

The Prosecution stated court that it had taken sufficient steps appropriately to inform the suspect who is residing in Singapore about the court order that to appear before the CID. Therefore they said there are enough grounds to believe that suspect Mahendran is absconding the court hence an arrest warrant be issued against him.

In compliance with the Criminal Procedure Code. the Magistrate before issuing the warrant,directed the prosecution to lead evidence of the CID official Sanjeewani Keppettige IP, who dealt with process of sending notices to Mahendran,
Magistrate Lanka Jayaratne observed the fact that the prosecution had leveled allegations against suspect Mahendran under the Public Property Act and the Penal Code based sufficient materials and that the court can issue an arrest warrant against the suspect under the section 63 of the Criminal Procedure Code before the suspect being charged (giving a charge sheet to suspects) in the magisterial inquiry.

The Magistrate also considered the facts that daughter of the first suspect (Mahendran) in a statement had said that his father was aware about the notice and that second suspect Aloysius is also the son in law of Mahendran hence the court has sufficient grounds to believe that the suspect was aware of the notice.

Subsequently, an arrest warrant issued in both Sinhalese language ( to be used locally) and English language ( to be used internationally).

Filing a further report in Court, the prosecution sought several court orders to intensify the magisterial inquiry conducted over the misappropriation took place during the Treasury-Bond auction held on February 27, 2015.

Acceding the prosecution's request the Magistrate issued court orders to the relevant authorities of Etisalat, Dialog, Mobitel and Telecom service providers to provide communication details pertaining to several concerning individuals mentioned in the B report by the prosecution.

The prosecution requested the Court to send a notice to the relevant authority of the Perpetual Treasuries Ltd (PTL) to send a representative on behalf of the company which is also made liable and the third suspect in the inquiry for the offences commttied under the Registered Stocks and Securities Ordinance as it was required under the section 261 of the Criminal Procedure Code.

However, Counsel Jeewantha Jayathilake who appeared for the defense stated that fourth suspect Kasun Palisena who is the Chief Executive Officer of the PTL can represent the company as well.

Additional Solicitor General Yasantha Kodagoda PC who appeared for the prosecution objected that and held that Kasun Palisena is already a remanded suspect to the inquiry and in the event if he represents the PTL too, there could be possible impediments to the inquiry in a way of conflict of interest.

The Magistrate however decided to peruse the legal aspect of the situation further and fixed the order to be delivered on next hearing.

The prosecution also requested the court to direct suspects Kasun Palisena and Arjun Aloysius to provide a comprehensive report on their assets in expectation of identify the final destinations of the illegal profits gained by the PTL in Bond transactions.

However, Counsel Jayathilake objected to it and maintained that his clients are not Government Officials who should give such declarations hence not legally bound to do so.

ASG Kodagoda PC said that the prosecution requires only a report on suspects' assets and that report would not be even used as evidence in the inquiry since the prosecution needs only to identify the certain assets owned by the suspects.

ASG Kodagoda however informed the court that the prosecution had identified a Rs. 150 million fixed deposit of WM & Mendis being lifted very recently by a private bank to over draw its credits. He said This transaction took place because the previous prevention order given on transferring assets of Perpetual Group did not included the fixed deposits owned by the other associated companies. ASG Kodagoda also said it was very important to identify the current form of the money that PTL gained illegally.

The Magistrate fixed the next date to deliver an order on the request.

Meanwhile, the Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were ordered to be re-remanded till March 29 by Fort Magistrate Lanka Jayaratne over the magisterial inquiry in which they were accused of abetting and conspiring with Arjuna Mahendran to misappropriate public funds worth Rs. 688 million during the Bond auction held on February 27, 2015.

The Prosecution alleged that Arjuna Mahendran as the main responsible figure in CBSL (former Governor) upon whom the element of entrust of the Government securities was assigned with as per the Monetary Law Act had failed to exercise his duty to raise borrowings to the Government on 'least cost' as he had associated with his son in laws company by providing price sensitive information.

Therefore the Prosecution leveled allegations against the former governor under the sections 386 and 388 of the Penal Code over criminal misappropriation and criminal breach of trust.

The prosecution also leveled charges against Arjuna Mahendran under the sections 8(1) and 5(1) of the Public Property Act over the misappropriation of public funds (in this case government securities).

The Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were also made liable under the Public Property Act and the Penal Code for abetting and conspiring with Mahendran to misappropriate the public funds.

It was explained that a Magistrate cannot release them on bail as per section 5 and 8(1) of the Public Property Act, where one who misappropriated public properties or assets causing more than Rs. 25,000 has no bail relief unless exceptional circumstances or by a High Court Judge.

The prosecution also leveled allegations against ‘Perpetual Treasuries Ltd’, Arjun Aloysius and Kasun Palisena for engaging in illegal ‘insider dealing’ by obtaining price sensitive inside information, which is deemed to be a punishable and prohibited conduct under section 56 (1) of the Registered Stocks and Securities Ordinance and the Code of Conduct for Primary Dealers by the CBSL. (Punishment was five years of imprisonment).

They alleged that Arjuna Mahendran had also helped PTL to get insider information and therefore made him also liable under the offence of ‘Abetment’ for ‘insider dealing’ under the Penal Code.

Saturday 3 March 2018

The Fort Magistrate says Mahendran still has time till March 8 to report to the CID

 -Issuing necessary Court orders on Mahendran could be considered if he fails to report  the CID, says the Magistrate
 
-Aloysius suffering from a skin condition and a urine infection at the remand prison says defense Counsel
 
-Aloysius, Palisena re-remanded till March 15
 
By Shehan Chamika Silva 
 
Fort Magistrate Lanka Jayaratne yesterday observed that the issuance of a special Court order on Central Bank's former governor Arjuna Lakshman Mahendran was not required because he has till March 8 to report to the CID.
She said such move would be considered if he fails to report to the CID at least by that date.
Deputy Solicitor General Haripriya Jayasundara prosecuting, informed Court that the order issued on Mr. Mahendran was not carried out because the Singapore courier service was unable to locate him at his current address in that country.
He said however, the courier service had thereafter dialled Mr. Mahendran's mobile phone number and the person answering the phone identified himself as Lakshman said he was returning to Singapore on March 30.
The DSG sought a court order to permitting the CID to record more statements from Arjun Aloysius and Kasun Palisena because they had reported sick on the previous occasion.
He also requested Court to direct Perpetual Treasuries Ltd (PTL) to send a company representative to Court as it was liable for the offences committed under the Registered Stocks and Securities Ordinance and that under Section 261 of the Criminal Procedure Code the company should be represented during the inquiry.
President's Counsel Kalinga Indatissa who appeared for the defense undertook to have a company representative in Court at the next hearing.
Meanwhile, Counsel Jeewantha Jayathilake appearing for Mr. Aloysius informed Court that his client was suffering from a bad skin condition and a urine infection and as such request Court to direct the prison authorities to produce Mr. Aloysius before a prison doctor or a suitable medical officer.
He said because of media pressure the prison authorities appear reluctant to allow his client medical attention.
However, the Magistrate said under a Judicial Services Commission circular, the Court could not issue such orders with reference to a suspect's medical condition and directed the prison authorities to consider Mr. Aloysius' request and produce him before a suitable medical officer.  
The Magistrate also permitted the CID to record further statements of the suspects inside the remand prison.
 
Meanwhile, Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were ordered to be re-remanded till March 15 by Fort Magistrate Lanka Jayaratne over the magisterial inquiry in which they were accused of abetting and conspiring with Arjuna Mahendran to misappropriate public funds worth Rs. 688 million during the Bond auction held on February 27, 2015.
 
The Prosecution alleged that Arjuna Mahendran as the main responsible figure in CBSL (former Governor) upon whom the element of entrust of the Government securities was assigned with as per the Monetary Law Act had failed to exercise his duty to raise borrowings to the Government on 'least cost' as he had associated with his son in laws company by providing price sensitive information.
 
Therefore the Prosecution leveled allegations against the former governor under the sections 386 and 388 of the Penal Code over criminal misappropriation and criminal breach of trust.
 
The prosecution also levelled charges against Arjuna Mahendran under the sections 8(1) and 5(1) of the Public Property Act over the misappropriation of public funds (in this case government securities).
 
The Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were also made liable under the Public Property Act and the Penal Code for abetting and conspiring with Mahendran to misappropriate the public funds. 
 
It was explained that a Magistrate cannot release them on bail as per section 5 and 8(1) of the Public Property Act, where one who misappropriated public properties or assets causing more than Rs. 25,000 has no bail relief unless exceptional circumstances or by a High Court Judge.
 
The prosecution also leveled allegations against ‘Perpetual Treasuries Ltd’, Arjun Aloysius and Kasun Palisena for engaging in illegal ‘insider dealing’ by obtaining price-sensitive inside information, which is deemed to be a punishable and prohibited conduct under section 56 (1) of the Registered Stocks and Securities Ordinance and the Code of Conduct for Primary Dealers by the CBSL. (Punishment was five years of imprisonment). 
 
They alleged that Arjuna Mahendran had also helped PTL to get insider information and therefore made him also liable for the offence of ‘Abetment’ for ‘insider dealing’ under the Penal Code.