CB Governor’s passport impounded


By Shiran Ranasinghe

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had decided to impound the passport of Central Bank Governor Arjuna Mahendran, a senior official of the commission said yesterday.

He said the decision had been conveyed to the Department of Immigration and Emigration.

The CIABOC summoned Mahendran and questioned him for nearly six and half hours and recorded a statement regarding the controversial Treasury bond issue on Thursday.

Mahendran has been under fire since the controversial treasury bond issue by the Central Bank with many calling for his removal. There have been rising concerns in bond markets over controversial deals made by Perpetual Treasuries, a firm connected to Arjun Aloysius, the son-in-law of Governor Arjuna Mahendran.

The money markets were in an uproar on Feb. 27 when the CB announced it was accepting bids worth Rs. 10 billion at 9.50-12.50 per cent whereas clients and most primary dealers had made bids between 9.50 and 10.50 per cent, not in the 11-12 per cent range. Only a few bids, including those by Perpetual Treasuries were made in the 12 per cent range and five billion bids from PT had been accepted at 12.50 per cent.

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