AG’s order disregarded AG’s order disregarded
Jun 15, 2017

Bond fraud led to Rs. 4 trillion debt! Featured

The state has got into debt amounting to Rs. 4.7 trillion as a result of the massive fraud and corruption that had taken place since 2008 during the Rajapaksa regime in the issuance of treasury bonds through direct placements, the commission investigating the fraud was told yesterday (14).

An order by the attorney general on 12 February 2004 to compulsorily audit all direct placements has been disregarded, it also transpired from the reports and statements submitted.

Lawyer Harsha Fernando led the evidence when AG Gamini Wijesinghe testified before the commission.

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Administrative shortcomings continue

When questioned by justice P.S. Jayawardena, the AG blamed continuing administrative shortcomings for the direct placement method still being followed despite its having caused massive fraud and corruption.

He agreed with the judge that direct placements should be controlled.

In answer to a question by commission chairman, justice K.T. Chitrasiri, Wijesinghe said he would check documents and inform about his order not being followed and no audit done despite the direct placement method being under the AG’s control since 2008.

Justice Jayawardena noted the State Debt Department of the Central Bank had earned trillions of rupees since 2008, and questioned the AG about the officials involved, if any corruption had taken place etc.

Senior additional solicitor general Dappula Livera and additional solicitor general Yasantha Kodagoda also attended the hearing.

Lawyer Harsha Fernando appeared on behalf of CB deputy governor P. Samarasiri.