It has been revealed that former Governor of Central Bank of Sri Lanka (CBSL) Arjuna Madhendran, during whose tenure the controversial bond scam was committed, has defrauded Rs.66 million of public funds on 163 occasions. This is revealed in an internal audit carried out by the internal audit department of the CBSL.
He has defrauded funds exceeding the credit card limit a governor could spend officially. According to the audit report Mr. Arjun Mahendran has also spent Rs.2 million to buy valuable suits. He has spent funds from CBSL as if he was spending from his business earnings. He has produced bills of expenditure for two hotels for the same day when participating in a summit in India.
The audit report reveals very high monthly credit card expenditure, not producing invoices for payments, producing unacceptable invoices, delaying personal payments, absence of audit evidence for official spending, not settling personal spending in Singapore, not settling stamp duties, over-the-limit fees for credit cards, claiming official spending for personal spending, violating CBSL regulations when spending, staying in places closer to the official residence of the Governor, submitting contradictory costs, violating excise regulations are some of the instances mentioned in the report.
There are also violations of travel allowances, producing bills for several hotels for stays on the same day, variance in dates and times of entry and exit, ordering board in hotels for extra guests, contradiction in hotel bookings and travel claims, over spending committed by Mahendran according to the audit report. He has also violated regulations in entertainment.
As a result of serious irregularities committed by Arjun Mahendran CBSL has incurred a loss of Rs.66280616 reveals the internal audit report.
The convener of Voice Against Corruption (VAC) Wasantha Samarasinghe said a complaint would be lodged at the Anti-Corruption Committee Secretariat against former Governor of CBSL Arjun Mahendran who has destroyed people’s funds as a plundering villain.
Audit report ii
Audit report i:
Audit report ii: