President Maithripala Sirisena yesterday revealed to the public recent incidents of corruption and bribery over the issuance of Treasury Bonds as well as serious acts of fraud and abuse of power and state resources, backing key recommendations from specialists tasked with an independent probe.
In a much-awaited prerecorded televised address to the nation, the President detailed the incidents, several of which were criminal in nature, and named the culprits, among whom were the former Finance Minister Ravi Karunanayake, the Central Bank Governor Arjuna Mahendran and his son-in-law Arjun Aloysius along with other officials and private sector personnel.
Full Text oftThe Official translation of President Sirisena’s speech released by the President’s Office is as follows –
May the Triple Gem Bless You!
First of all, I offer my best wishes for the New Year.
As the people of the country are eagerly waiting with high interest, I wish to make a statement on the final report of the Presidential Commission of Inquiry (PCoI) into the Issue of Treasury Bonds of the Central Bank of Sri Lanka, which was appointed by me taking into consideration the opinion of the people regarding allegations of corrupt practices and misdeeds during the period 2015 and 2016. Its report was handed over to me on December 30, 2017.
The Commission was mandated to inquire into the issuance of treasury bonds during the period from 1st February 2015 to 31st March 2016 to find out actual facts and to make recommendations as to the steps to be implemented in the future.
I thank the Supreme Court Judges and former Auditor-General who functioned as members of the Commission and its Secretary and the staff, and those who assisted the work of the Commission, Attorney Generals Department, Police Department and other relevant organizations and individuals.
The Commission is of the opinion that similar incidents as revealed in the Commission Report had happened even in 2008. The Commission recommends that the Central Bank of Sri Lanka should first conduct a forensic audit with regard to the alleged fraud and corrupt practices from 2008 onwards, and based on such findings, legal actions should be taken.
Commission states that funds of the Employment Provident Fund (EPF) were lost mostly during that period.
The Commission has submitted a full report covering the period 2015 and 2016, comprising 1257 pages and it is not an interim report. The Commission has taken 10 months for this task.
I have already submitted this report to Attorney-General and the Commission recommends that the criminal and civil court action must be taken through the Criminal Investigations Department and the Commission to Investigate Allegations of Bribery or Corruption.
The Commission has clearly stated the structure of the Central Bank, Public Debt Department, direct issuance of Treasury bonds and the pros and cons of the system of issuance of bonds as well as bond auctions. The report stated that the Perpetual Treasuries Limited has earned profits through means that are not legal, with the involvement of Mr Arjuna Mahendran, Bank officials and some external parties.
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