AG Dept goes to SC over bond decision

The Attorney General’s (AG) Department has decided to file a revision application before the Supreme Court next week challenging the split decision given by Colombo High Court Trial-at-Bar in the second bond scam case filed against the 11 accused including former Finance Minister Ravi Karunanayake.

The majority of the Colombo High Court Trial-at-Bar has discharged 11 accused only of the charges brought under the Public Property Act stating that the first accused, Perpetual Treasuries Limited (company), was not a natural person and it could not be charged under the Act.

It was therefore stated that the charges filed under the Public Property Act against the 11 accused, including Mr Karunanayake, former Central Bank Governor Arjuna Mahendran, PTL Directors Geoffrey Aloysius, Arjun Aloysius, Kasun Palisena and others cannot be maintained.

The defendants are accused of criminal breach of trust in connection with the issuing of bonds for Rs36.98 at the Central Bank's bond auction in 2016.

The matter was brought before Colombo High Court Trial-at-Bar Judges Damith Thotawatta, Manjula Thilakaratna, and Mohamed Irshadeen last Friday (4) to hear preliminary objections presented by the defendants, arguing that the case filed by the Attorney General against them could not proceed.

The majority decision was delivered by Justices Damith Totawatta and Manjula Thilakaratna, who stated that under Section 7 of the Public Property Act, only natural persons can be charged.

However, High Court Judge Mohamed Irshadeen opposing the above order made by the two judges, firmly said that charges could be filed under the Public Property Act against the accused.

President’s Counsel Shavendra Fernando representing the defense said that their clients could be acquitted from the case since the Court had decided to file charges under the Public Property Act.

However, Senior State Counsel Lakmini Girihagama informed the Court that the charges have been filed in the case in connection with the first accused, and the AG’s Department would think deeply about the verdict and take further action.

She further informed the Court that since the first charge of the case is null and void by the above decision, the other charges are also null and void.

The Colombo High Court Trial-atBar fixed the case with other charges based on the Registered Stocks and Securities Ordinance for pre-trial on May 4, 2022.

The AG has filed indictments before three Trials-at-Bar regarding the alleged scams that took place during three different Treasury Bond auctions during the term of the former Government.

The total amount of funds that had allegedly been defrauded during the three bond actions amounts to Rs 68 billion, according to the AG’s Department.

The AG’s Department alleges that Rs 18 billion has been defrauded during the bond auction that took place on February 27, 2015 and Rs 36.98 billion defrauded during the auction on March 29, 2016. The amount defrauded at the auction held on March 31, 2016 is Rs 15 billion.

The AG has filed 24 indictments regarding the first Bond auction, 30 indictments on the second auction and 30 again on the third auction.