Mahendran resides in Singapore: S'pore Police

By Shehan Chamika Silva

ASG Yasantha Kodagoda today informed Court that the Singapore Police had officially informed the CID that former CBSL Governor Arjuna Mahendran is currently residing in Singapore.

In expectation of bringing him down to Sri Lanka, the ASG said all the necessary internal actions are being taken place between the CID and the Singapore Police.

Arjuna Mahendran is the first suspect of the Magisterial inquiry in which he was accused over misappropriating public funds worth Rs. 688 million during the Bond auction held on February 27, 2015.

A parliamentarian received ‘cash cheque’ from PTL related company: ASG Kodagoda

- Court orders for more details of those companies

-   Arjun Aloysius, Kasun Palisena re-remanded till June 7 

By Shehan Chamika Silva 

Additional Solicitor General Yasantha Kodagoda today said a cash cheque of ‘Walt and Row Associates’- a group company of Perpetual Treasuries Ltd, amounting to Rs. 1 million, had been encashed by a security officer of a Parliamentarian. 

The name of the Parliamentarian which was stated in the B report was not revealed in open courts by the Prosecution. 

This was revealed according to a statement given by a police officer to the CID recently, who was attached to the security of the so called Politician.

 

Elaborating on the suspicious nature in which Perpetual Treasuries Ltd had transacted with its group companies (W.M. & Mendis and Walt & Row Associates) to encash cheques which had been ultimately lasted as money to third parties, ASG Kodagoda revealed another encashment of a cash cheque in similar manner. 

ASG Kodagoda said that the investigation had accidentally revealed another similar cheque encashment where an employee of a professional services providing company (Certis Lanka) was interviewed by the CID. 

This cheque was also amounting to Rs. 1 million belonging to W.M. & Mendis- a PTL related group company. 

It was explained that on behalf of W.M. & Mendis this person had encashed the cheque from a reputed Bank and subsequently the money in cash had been handed over to a third party who was seated in the passanger seat of a Defender at the car park of the Bank premises. 

The name of this third party was also not revealed in open proceedings by the ASG.

However, in expectation of perusing on more possible 'money trading' activities of PTL, the prosecution obtained a court order on Certis Lanka to provide details about the services it provided to the PTL and its related companies, W.M. & Mendis and Walt & Row Associates.

At the onset of the inquiry, ASG Kodagoda also sought necessary court orders in relation to certain details of the secondary market transactions of PTL. 

He explained that it was not only about how PTL operated in the Primary Market but also how it dealt within the bond related secondary market. 

It was explained that every primary dealer like PTL had to maintain records about their secondary market dealings in both physical nature (as paper works) and in the scriptless computer system contemporaneously with the Central Bank's computer system (RTGS). 

This computer system that primary dealers operate in relation with secondary market deals is installed and maintained generally by a company called Lanka Finance Services Bureau. 

In view of identifying whether PTL had fed its secondary transactions properly into the CBSL scriptless system (RTGS) via its computer system provided by LFSB, Fort Magistrate Lanka Jayaratne directed LFSB to provide all details relating to secondary market transactions of PTL including ‘SWIFT messages’ from January 2015 to February 2018. 

The Magistrate also directed Geoffrey Aloysius who was the second share holder of PTL to provide all the physical documents that it maintained during all bond transactions to the prosecution. 

In the meantime, Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were ordered to be re-remanded till June 7 by the magistrate 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.

Dayasiri received Rs. 1mn cheque from Aloysius' PTL related company in 2015

By Shehan Chamika Silva

According to a further report (B report) filed into the magisterial inquiry over the Bond scam by the prosecution yesterday, it was revealed that Parliamentarian Dayasiri Jayasekara had received a cheque of Rs. one million from Walt & Row Associates- a Perpetual Treasuries Ltd related group company in 2015.

According to a statement given by a police officer to the CID, who was attached to Mr. Jayasekara’s security in 2015, it was revealed that, on June 13, 2015 Mr. Jayasekara had asked his security officer, Amila Kumara Herath, to encash a cash cheque ( bearing number 566635) which was issued by Walt & Row Associates (under the current account number 0073900773)

According to the statement of Mr. Herath, he then had encashed the cheque from a Kurunegala Bank and subsequently the Mmney ‘in cash’ was handed over to Mr. Jayasekara.

Due to the suspicious nature in which Perpetual Treasuries Ltd had transacted with its group companies (W.M. & Mendis and Walt & Row Associates) to encash cheques which had been ultimately lasted with third parties, the prosecution also obtained a court order to the Chief Executive Officer of Walt & Row Associates to provide details about cheque transactions relating to such nature.

Inland Revenue details of Bond scam suspects can be obtained: Fort Magistrate

By Shehan Chamika Silva

Fort Magistrate Lanka Jayaratne gave an order today with regard to the legal ambiguity that occurred earlier regarding how to seek details from the Inland Revenue Department (IRD) Commissioner under the amended Inland Revenue Act 2014, in order for the prosecution to obtain income related details of the suspects relating to the magisterial inquiry conducted into the Bond scam.

According to Section 42 (relating to the section 209 of the original Act) of the Number 8, 2014 (Amendment) Inland Revenue Act, it states that “if required, in pursuance to an Order issued by a competent Court, the Inspector General of Police, in the course of an investigation which affects to the public interest, can request from Commissioner of the Inland Revenue Department to furnish all information relating to the suspect concerning”.

The Magistrate said for the court to give an order, first of all there should be a written request from the Inspector General of Police or an authorized officer on behalf of him in the court based on which then the Court can issue an order to the IRD.

It was explained that the previous law before the amendment did not allow anyone to peruse such details of any person and that now the prosecution can acquire details from the IRD obtaining a court order after that IGP requests the court to do so concerning the public interest of the inquiry.

Court orders W.M. Mendis & Company CEO for finance details

-PC Kalinga Indatissa observes unfeasibility of bringing down Mahendran under Extradition Law

-Defense files written submissions over PTL representation and legality over requiring assets reports from suspects

-Aloysius and Palisena were re-remanded till May 24

By Shehan Chamika Silva

In the wake of prosecution’s allegation on suspicious money transactions that transpired from Perpetual Treasuries Ltd to one of its group companies, W M. Mendis & Company, the Court today directed Chief Executive Officer of W M. Mendis & Company to furnish a comprehensive report on its finances to the Prosecution.

Fort Magistrate Lanka Jayaratne made this direction based on the request of the prosecution so as to investigate the matter further.

The Prosecution sought the details in form of a report (not a form of a declaration) which is for the sole purpose of the investigation.

In the meantime, the Defense filed their written objections on two matters that occurred earlier as to whether Perpetual Treasuries Ltd should send an independent representative on its behalf for the inquiry instead of allowing either Kasun Palisena (CEO and the 4th suspect) or Arjun Aloysius (de facto owner and 2nd suspect) to appear for the Company which is also the 3rd suspect of the inquiry as well.

The defense also objected to the legality and compliance of the earlier court direction given to the PTL and the two suspects (Aloysius and Palisena) to provide a comprehensive list of their assets in the form of a report to the prosecution.

Subsequently, the Prosecution was also allowed to submit their counter objections in written form on the next day by the Court so as to deliver an appropriate order on the matters concerned.

Meanwhile during the proceedings, President's Counsel Kalinga Indatissa who appeared for the suspects, in a neutral observation, said it was not possible to apply extradition law with regard to former CBSL governor Arjuna Mahendran since that law is only related with convicts and not with suspects.

He observed this when the prosecution contemplated on the possibility of extraditing former CBSL governor Arjuna Mahendran based on Extradition law. He further said that there are other legal mechanisms which can be used by the prosecution since the matter is quite complicated than one would think.

Perpetual Treasuries Ltd owner Arjun Aloysius and its CEO Kasun Palisena were ordered to be re-remanded till May 24 by the magistrate 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.

State Counsel Udara Karunathilake appeared for the state while PC Kalinga Indatissa and Counsel Jeewantha Jayathilake appeared for the suspects.