SC case against Treasury bond issue on Tuesday

The Supreme Court Fundamental Rights (FR) petition seeking an independent inquiry into the controversial Central Bank Treasury bond will be heard by court on Tuesday, May 5, according to Saliya Peiris, lawyer appearing on behalf of the petitioners.

Central Bank Governor Arjuna Mahendran, embroiled in the case owing to his sonin-law’s family firm securing 50 per cent of the said Rs.10 billion bond, returned to work last week from self-imposed leave after a 3-member inquiry committee said he was not ‘directly’ involved. The report of the committee is yet to be tabled in parliament. On Wednesday, the opposition handed over a motion to the parliamentary speaker seeking action against the Governor.

The FR petition was filed last month by three good governance activists - Dr. G. Usvatte-Aratchi (economist and former UN official), Dr. A.C. Visvalingam (engineering consultant and former member of the Public Service Commission) and Chandra Jayaratne (chartered accountant and former Chairman, Ceylon Chamber of Commerce). They are seeking an order from court directing the Monetary Board “to carry out an independent inquiry by a competent panel of professionals well versed in the rules, systems, procedures and processes applicable to the public debt management under the supervision of court”.

It said the February 27 bond transaction “is steeped in serious irregularities, lack of transparency and adherence to accepted best practices of good governance and possibly tainted by conflicts of interests and related party transactions…”

On Wednesday, the opposition handed over a motion to the parliamentary speaker seeking action against the Governor