Sri Lanka: Capital of The Cover up? THE GREAT SWINDLE CARRIES ON

Welcome to 2019 and our first issue. Now that the celebrations are all done, the Ceylon Independent reveals how a full year after the BOND Report was handed over to President Maithripala Sirisena, the Central Bank of Sri Lanka are yet to deliver the forensic audit into the issuance of bonds.

We note that to complicate and drag matters even longer, the forensic audit is to look at the entire gamut – read that to mean that this government have somehow or other prevailed upon the Central Bank to have a forensic audit to encompass the Cabraal Years as well as the Mahendran Years.

If the political pundit who masquerade as pseudo democrats have real commitment to get to the bottom of this scam (so described by the Attorney General’s department at the Commission of Inquiry) the boffins at the Central Bank ought to have ordered different sets of Forensic Audits – so as to elicit the information quicker not be bogged down by several years’ issue of treasury bills and bonds which will obviously take its toll on time.

We note what the BOND Report had to say about Arjuna Mahendran the Governor of the Central Bank. We carry images on the front page today of that.

“Firstly we have earlier determined that the Government of Sri Lanka suffered an avoidable loss of RS 688,762,100 as a direct result of Mr. Mahendran’s intervention in the Treasury Bond Auction of 27th February 2015 and the instructions he gave to both the Public Debt Department and the Tender Board that bids to the value of Rs 10,058,000,000 (Rs 10.05 BILLION) must be accepted at the auction.”

“We are of the considered opinion that Mr. Mahendran is liable and responsible for this loss and that this loss should be recovered from Mr. Mahendran”

“We have also earlier in the Report determined that Mr. Mahendran directed that Rs 10,058 Billion be accepted for the improper, wrongful and mala fide collateral purpose of enabling Perpetual Treasuries Ltd to obtain a high value of Treasury Bonds at the Auction, at low bid prices and high Yield Rates and that, Mr. Mahendran provided “inside information” to Perpetual Treasuries Limited which Perpetual Treasuries Ltd used to its benefit at the Treasury Bond Auction held on 27th February 2015. We are also of the view that Perpetual Treasuries Limited are also liable for this loss of Rs 688,762,100”

We note what the BOND Report had to say about Perpetual Treasuries Ltd. We carry images on this page of that too.

“We are of the view that the quantum of the sum to which Perpetual Treasuries Ltd., gained or benefitted from “inside information (price sensitive information)” and ‘market manipulation’ can be reasonably estimated at Rs 8,529,964,495.61c.”

“We are of the view that the Hon. Attorney General or other appropriate authorities should consider instituting proceedings against Perpetual Treasuries in terms of … the provisions of the law …in the event of a conviction …… after summary trial, Perpetual Treasuries Ltd. Could be liable to a fine equivalent to twice the value of that sum” (Rs 17,059,928,991.22c)

The Ceylon Independent would like to point out that at the rate of 12.05% interest per annum, this works out at a loss of Rs 5,710,337.34c EACH AND EVERY DAY to the EPF.

Put another way at Rs 1,200,000 per house for the homeless Sajith Premadasa would be able to construct and distribute 1,733 houses each 365 days.4

The Unforgivable Nelsonian Eyes of the Party Faithful

Members of the party faithful including members of the judicial system (judges, lawyers, retired and serving alike) professionals from all walks of life and others who are deeply committed to the ideology of the UNP are also as much to blame as those who actually planned and executed the Great Swindle.

There is an almost thumbs up being given by some of the faithful because ‘after all the party had no money’. That would not have been an excuse worth considering in any heist of this nature. Yet the BOND scam is being treated by the party faithful as an inconvenient truth and every attempt is made to protect the leader and those closest to the scam.

The party faithful probably are welcoming the news that Arjun Aloysius was released on bail. We take the view that Aloysius is slowly being rehabilitated especially now that elections are hovering. Skeptical followers of the BOND SCAM point put that Aloysius knows the full extent of the depravity and other observers say that it is a moment not too far away that Aloysius will once again be re-admitted to the upper echelons of power. It’s a new beginning, but what is clear is that those who were indeed making nay raking in the billions, will be scouring the market place to do some deals to get back on the road to corruption. It is after all a road they have travelled at some other point.

Almost as sad as the Premier’s nonchalance is the appalling lack of urgency displayed by Guv. Coomaraswamy. He knows perfectly well that a year is far too long for the forensic audit to make up for the numbers. The grapevine indicates that he will be leaving these shores by Easter – meaning a new Governor will be in place and therefore the public can legitimately expect that the BOND Scam will never be resolved in our lifetime. Editor urges the public to think about this before voting.



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