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Treasury bond scam case: Controversy over flawed indictments that caused dismissal of some charges against Ravi, Mahendran, PTL, others

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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.



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Navy divers restore sluice gate of Bomburuella Reservoir

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The Sri Lanka Navy successfully conducted a diving operation on 19 Jan 26 to inspect and restore the sluice gate of the Bomburuella Reservoir.

Acting on a request from the Department of Irrigation, the Sri Lanka Navy deployed a specialized diving team from the Western Naval Command, for the urgent requirement.

Through concerted effort, the Navy divers successfully cleared accumulated debris, including a significant quantity of wooden fragments, which had impeded the sluice gate mechanism.

 

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PM holds High-Level meetings with EU, UNDP, and corporate leadership at World Economic Forum

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Prime Minister Dr. Harini Amarasuriya held a series of high-level bilateral meetings on Wednesday [January 21] on the sidelines of the World Economic Forum in Davos, Switzerland, engaging with representatives of the European Union, the United Nations Development Programme, and the global private sector.

The Prime Minister met with Hadja Lahbib, European Commissioner for Preparedness and Crisis Management. During the meeting, she expressed Sri Lanka’s appreciation for the support extended by the European Union and its member states following Cyclone Ditwa. The Prime Minister also briefed the Commissioner on the key findings of the World Bank’s GRADE report and requested continued EU support for Sri Lanka’s development and recovery efforts.

Prime Minister Amarasuriya also met with Alexander De Croo, representing the United Nations Development Programme. She expressed appreciation for the longstanding partnership between Sri Lanka and the United Nations and acknowledged the UN’s support in flood relief and livelihood assistance. The Prime Minister noted that, following the mandate received at the parliamentary election, the government is focused on meeting public expectations through national rebuilding grounded in public trust and good governance. She further reaffirmed the Government of Sri Lanka’s commitment to strengthening social protection systems and safeguarding vulnerable communities.

In addition, the Prime Minister met with Robert M. Uggla, Chairman of A.P. Moller Holding. The discussion focused on engagement with the private sector and potential areas of collaboration.

These meetings reflected Sri Lanka’s continued engagement with international partners and global stakeholders to support recovery, development, and long-term economic stability.

[Prime Minister’s Media Division]

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Opposition slams sitting HC judge’s appointment as Justice Ministry Additional Secretary

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Prof. Peiris

… alleges Prez trying to control judiciary

Opposition grouping ‘Mahajana Handa’ has accused President Anura Kumara Dissanayake of trying to exercise control over the judiciary by appointing a sitting High Court judge as Additional Secretary to the Justice and National Integration Ministry.

Addressing the media at Dr. N. M. Perera Centre, Punchi Borella, on Tuesday (20) top Opposition spokesman and former External Affairs Minister Prof. G. L. Peiris warned the High Court judge D.M.D.C. Bandara’s appointment was nothing but a direct executive intervention in the judiciary.

Responding to The Island queries, Prof Peiris asked how the government could compel courts to deal with a sitting judge who functioned as Secretary to the Justice and National Integration Ministry.

Prof. Peiris explained that the latest move by the Executive should be examined taking into consideration the attacks on Attorney General Parinda Ranasinghe Jr, PC., the deliberate delaying of the appointment of Auditor General and the controversy over the process of promotions of Judicial Officers, Judges of the High Court and the Court of Appeal in Sri Lanka. Prof. Peiris pointed out that the Bar Association of Sri Lanka (BASL) had raised those controversial promotions with President Anura Kumara Dissanayake.

D.M.D.C. Bandara, Senior Assistant Secretary, Judicial Service Commission, was among altogether 18 High Court judges appointed by President Dissanayake in early Sept this year. The group consisted of 17 Special Class Judicial Officers and a Senior State Counsel serving in the Attorney General’s Department.

Referring to a recent meeting ‘Mahajana Handa’ representatives, including him had with the Mahanayake theras of the Asgiriya and Malwatta Chapters in Kandy, Prof. Peiris said that they had received the blessings of the Mahanayakes to go ahead with what he called a programme of action meant to address major issues.

Prof. Peiris said they would initiate talks with other like-minded political parties and groups in this regard soon. Referring a protest held at the Hulftsdorp on Wednesday (21) demanding the removal of the AG Ranasinghe, Prof. Peiris emphasized that the government’s hand in that demonstration was very clear. President Ranil Wickremesinghe appointed him as the AG in July 2024 with the unanimous backing of the Constitutional Council.

Prof. Peiris said that action was yet to be initiated to appoint new civil society representatives to the Constitutional Council. That issue hadn’t received sufficient public attention, Prof. Peiris said, urging President Dissanayake to come down from his high horse.

Asked whether the President could appoint a sitting judge as an Additional Secretary to a Ministry without consulting the Chief Justice and President of the High Court Judges Association, sources familiar with the issues at hand said that certain appointments could be made on secondment. However, that has to follow the proper procedure, sources said.

The Island sought a response from the Justice and National Integration Ministry to the accusations made by Prof. Peiris on behalf of ‘Mahajana Handa,’ but did not receive one until this edition went to press.

By Shamindra Ferdinando ✍️

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