News
Treasury bond scam case: Controversy over flawed indictments that caused dismissal of some charges against Ravi, Mahendran, PTL, others
Trial-at-Bar highlights major flaw in Offences against Public Property Act, AG Dept.’s failure
By Shamindra Ferdinando
The Colombo High Court Trial-at-Bar had dismissed some of the charges filed against former Finance Minister Ravi Karunanayake, fugitive ex-Central Bank Governor Arjuna Mahendran and nine others in respect of Treasury bond scam perpetrated on 29 March 2016, due to the flawed indictments, legal sources told The Island yesterday (5).
Former President of the Bar Association of Sri Lanka (BASL), who is also the advisor to the Justice Ministry U. R. de Silva, PC, confirmed the issue at hand.
The Trial-at-Bar comprising Damith Thotawatte (Chairman), Manjula Thilakaratne and M. Izzadeen by a majority decision dismissed the relevant charges.
The court turned down a plea by State Counsel Lakmini Girihagama to alter the charge sheet last Friday (4). Karunanayake’s Counsel, Shavendra Fernando, PC, objected to the request made on behalf of the Attorney General. Judge Issadeen stated that charges could be maintained.Responding to The Island query, U.R. de Silva explained that under the Public Property Act (1982) only individuals could be indicted. But in the case of Treasury bond scam both individuals and Perpetual Treasuries (PTL) had been indicted, the President’s Counsel said, acknowledging it was a matter for serious concern. The first accused was the PTL, and other individuals.
The court was told the word ‘person’ hadn’t been interpreted in the Public Property Act hence the dispute. The Trial-at-Bar also held that though the interpretation in respect of ‘person’ in Penal Code could have been used but the Public Property Act didn’t make any reference to in this regard. The Trial-at-Bar, pointed out a major flaw in filing of the charges.
The incumbent President of BASL Saliya Peiris, PC, was not available for comment.
The indictments were filed during Dappula de Livera’s tenure as the AG. Sanjay Rajaratnam succeeded de Livera in May last year.
Attorney-at-Law and civil society activist Nagananda Kodituwakku said Friday’s discharge of Treasury bond scam suspects had prompted him to make inquiries from relevant parties.
Lawyer Kodituwakku said that those charged for Treasury bond scam had been discharged by the HC Trial-at-Bar only from some of the charges on the basis that only natural persons could be charged for robbing public funds and not companies such as the Perpetual Properties under the Public Property Act. There had been a similar judgment given by the HC in the recent past and that decision had been challenged by the Attorney General and the matter was still pending, the lawyer said.
Earlier, on 30 December 2017, a Presidential Commission of Inquiry (PCoI) headed by Justice K T Chitrasiri, had probed the Treasury bond scams, identified these suspects as being responsible for the fraud, and directed the Attorney General to initiate criminal proceedings against them, Kodituwakku said. Therefore, there was no truth in what was being circulated in the public domain that all suspects have been discharged by the judiciary, the lawyer said.
The PCoI consisted of Chairman Justice K.T. Chitrasiri, the late Justice P S Jayawardene and retired Deputy Auditor General, V Kandasamy.
Earlier, on 06 Dec., 2021, 11 persons including former MP Karunanayake and Arjuna Mahendran were indicted.
The three-judge Trial at Bar declared that as the 11 charges filed against the suspects couldn’t be sustained, they were dismissed.
The AG filed indictments against the suspects for conspiracy to commit criminal misappropriation in respect of Treasury bonds to the face value of Rs 36.98 billion on March 29, 2016.
The first Treasury bond scam was perpetrated on 27 Feb. 2015. The suspects are Ravi Karunanayaka, Arjuna Mahendran, Arjun Aloysius, Kasun Palisena, Jeffrey Joseph Aloysius, Chitta Ranjan Hulugalle, Muthuraja Surendran, Ajahn Gardige Punchihewea and Batugoda Hewa Indika Saman Kumara.
Kodituwakku pointed out that the dismissal of some of the charges in respect of the high-profile Treasury bond scam should be examined against the backdrop of the AG and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) withdrawing over 50 cases since the last presidential election.
The competence of the AG’s Department was raised in the Colombo High Court rulings given in respect of former Defence Secretary Hemasiri Fernando and ex-IGP Pujith Jayasundera in the Easter Sunday case.
News
Pakistan naval trio leaves Colombo after goodwill visit
Wrapping up their goodwill and replenishment visit, the Pakistan Navy ships ‘PNS Taimur’ and ‘PNS Aslat’, along with the submarine ‘PNS/M Hangor’, departed the island on 04 Jun 26. The naval units, which arrived in Sri Lanka on 01 June, were accorded a traditional naval send-off by the Sri Lanka Navy at the Port of Colombo, upon their departure.
During their stay, the Commanding Officers of Pakistan Navy ships and submarine called on the Commander Western Naval Area and the Flag Officer Commanding Naval Fleet at the Western Naval Command Headquarters, where discussions were held on several matters of mutual interest.
Meanwhile, Sri Lanka Navy personnel had the opportunity to visit the visiting Pakistan Navy ships and submarine. Furthermore, the crews of the visiting vessels explored the rich heritage of Sri Lanka, taking time to tour several culturally significant landmarks across the island.
News
China, Lanka intensify cooperation to fight cross-border crimes spreading across Asia and beyond
China and Sri Lanka have intensified joint law enforcement efforts to combat cross-border online gambling and telecom fraud, crimes that authorities warn are increasingly spreading across Asia and beyond.
The Chinese Embassy in Colombo said both countries are working closely to dismantle scam centres and fraud networks that have relocated to Sri Lanka from other parts of Southeast Asia. The Embassy noted that such operations often intertwine with human trafficking and other serious crimes, posing grave risks to public security and social stability.
China’s position on cross-border gambling remains firm: Chinese capital is prohibited from investing in overseas casinos, citizens are barred from operating them, and foreign casinos are forbidden from soliciting Chinese nationals. The Embassy stressed that gambling “almost invariably leads to financial ruin,” with tens of thousands of Chinese citizens suffering losses and harm. Recent amendments to China’s Criminal Law have criminalised cross-border gambling activities.
The Embassy pointed out that Sri Lankan authorities have carried out multiple raids in recent months, dismantling gambling and fraud dens and arresting suspects from several countries. Several Chinese nationals, involved in fraud-related crimes, have been handed over to Chinese authorities, producing what officials described as a strong deterrent effect.
The Chinese Embassy praised the efforts of Sri Lanka’s ministries of Foreign Affairs, Finance, and Public Security, particularly immigration and police officials, for their cooperation.
It warned that without firm and immediate measures, the spread of illegal gambling and fraud could damage Sri Lanka’s international image, undermine social stability, and harm the safety and security of its people.
China has already conducted similar law enforcement cooperation with countries including Spain, the UAE, Myanmar, and Cambodia, leading to arrests and repatriations of overseas fraud suspects. It has also proposed the creation of an international alliance against telecom and online fraud to coordinate global efforts, it said.
Going forward, China pledged to actively implement the Global Security Initiative and Global Civilization Initiative, while continuing to deepen law enforcement and security cooperation with Sri Lanka.
The Embassy said these efforts aim to safeguard lives and property, protect financial security, and build a “clean, safe, and beautiful Sri Lanka,” while contributing to a new global framework for combating transnational crime.
News
Asst. Manager, security officer arrested over Rs 30 mn snatch at Horana PB branch
An assistant manager and a security officer, attached to a state bank branch in Horana, have been arrested in connection with the robbery of more than Rs. 30 million that was being transported to replenish automated teller machines (ATMs), Police said.
The two suspects were taken into custody on Friday after statements were recorded from them regarding the incident, which occurred on Wednesday afternoon at the Horana branch of the People’s Bank.
According to Police, a bank employee was carrying two bags containing cash through the rear entrance of the bank at around 2.45 p.m. when an individual, who had arrived on foot, allegedly snatched the bags and fled the scene.
The stolen money, amounting to approximately Rs. 30.5 million, had been prepared for distribution to ATM machines and transportation to other bank branches. Earlier reports had estimated the loss at around Rs. 35 million.
Investigators subsequently arrested a suspect believed to have been directly involved in the robbery and recovered Rs. 17 million of the stolen cash.
Police have not disclosed the exact circumstances that led to the arrest of the assistant manager and security officer but said investigations uncovered information linking them to the incident.
The Western Province North Crime Division is conducting further investigations to determine whether additional suspects were involved and to recover the remaining stolen money.
The daring daylight robbery has raised concerns over security procedures employed during transportation of large sums of cash to/from banking institutions.Further investigations are continuing.
by Norman Palihawadane
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