The Committee on Public Enterprise has recommended legal action against former Governor of Central Bank Arjuna Mahendran.

Mahendran was directly involved in the bond scam at the Central Bank, the report filed to the Parliament by COPE Chairman Sunil Handunnetti said.

It also recommended that the loss incurred by the government to be recovered from the Perpetual Treasuries company, connected to Arjun Aloysius, son-in-law of Mahendran.

Mahendran, a Sri Lankan born Singaporean, is a protege of Prime Minister Ranil Wickremesinghe.

A three member committee appointed by the Prime Minister in March 2015 said that Mahendran was not directly involved in the bond scam. The findings by the COPE has seriously undermined the recommendations of the committee, and indicates that it may have been a cover-up.