Exclusive: Bond Scam; Full Text Of Interim Report Of COPE Inquiry

June 30, 2015

The 13-member Special Parliamentary Investigation Committee that probed the alleged insider trading and favoritism in the recent treasury bond issue has established Central Bank Governor Arjuna Mahendran’s direct intervention on behalf of his son-in-law Arjun Aloysius owned Perpetual Treasuries.

The Central Bank Governor – Arjuna Mahendran

Last month, the three-member lawyers committee appointed by Prime Minister Ranil Wickremesinghe to probe into the controversy that has emerged over the issuance of Treasury Bonds has said that the Central Bank Governor Arjuna Mahendran had no direct role in deciding to accept bids over and above the one billion rupees stipulated in the 30-year bond tender and accept up to 10 billion rupees.

The parliamentary committee comprised Chairman of the Committee on Public Enterprises (COPE) and General Secretary of the Communist Party, DEW Gunasekera, Minister of Health and Indigenous Medicine Rajitha Senaratne, State Minister of Child Development Rosy Senanayake, Deputy Minister of Highways and Investment Promotion Eran Wickramaratna, Deputy Minister of Justice Sujeewa Senasinghe, UPFA MP Lasantha Alagiyawanna, Minister of Ports, Shipping and Aviation Arjuna Ranatunga, Democratic National Alliance MP Sunil Handunetti, Minister of Ports, Shipping and Aviation Arjuna Ranatunga, UPFA MP Susil Premajayantha, UPFA MP Hassan Ali, Prof. Rajiva Wijesinha, UPFA MP Weerakumara Dissanyake and Illankai Tamil Arasu Kadchi (ITAK) MP E. Saravanapavan.

The Parliament had never before appointed a special committee comprising members of COPE to investigate a specific allegation against a senior state official. The committee received the expert advice of former Deputy Governor of the Central Bank W.A. Wijewardena.  Apart from the expert advice, prior to the investigation COPE members were given a two day class by Dr. Wijewardena.

We publish below the interim report prepared by the committee, the sudden decision to dissolve effectively stopped the report from being tabled in Parliament.           Read More