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.