The Forensic Audit (FA) reports related to the issuance of
Treasury Bonds and transactions of the Employees’ Provident Fund (EPF) have
uncovered a loss of at least Rs. 19 billion to the Treasury.
These losses are detailed in three out of five reports relating
to the issuance of Treasury Bonds
·
Between January 2002 to February 2015, primary and secondary market
transactions of EPF
·
Between January 2002 and February 2015, EPF transactions in listed and
unlisted equities
· Between January 1998 and December 2017.
There is a possibility that these losses are far greater. But sources
were only able to confirm the discovery of Rs. 19 billion in losses so far.
It’s been two months since the reports were handed over to the
Central Bank, then sought the opinion of the Attorney General as to whether the
reports should be made public. but due to Attorney General’s instructions, the
reports are yet to be made public.
Reporting done by leading international audit firms such as KPMG
and BDO was handed over to the Central Bank in late October. They were
commissioned based on the recommendations of the Presidential Commission of
Inquiry (PCoI) to investigate the issuance of Treasury Bonds during the
period 1 February 2015 to 31 March 2016.
Former President Maithripala Sirisena set up the PCoL in order
to probe the controversial Central Bank Treasury Bond Scam of February 2015
that caused losses amounting to Rs. 11 billion.
The AG opined that the findings in the reports have the
potential to be evidence in investigations and legal actions and therefore,
access should be limited to those who have statutory authority to access them
while emphasizing that the recipients maintain confidentiality.
The AG further informed the Central Bank that once the reports
and related documents have been fully considered, any extracts which could be
disseminated in the public domain without prejudice to investigations or
litigation will be notified to the Central Bank.
The reports have since been veiled in a cloak of secrecy for two
months and extracts have not been put in the public domain either as specified
by the AG.
When contacted by (Author) Deluka Ranasinghe of Lanka
news, the Senior Advisor on Economic Affairs to Prime Minister Mahinda
Rajapaksa, Ajith Nivard Cabraal said the Government had not discussed the issue
as yet. Former Finance Ministry Secretary Dr. R.H.S. Samaratunga, who was a
member of the Central Bank Monetary Board till November, refused to comment on
the losses which are contained in the report.
“Monetary Board members were given the draft reports before it
was finalized. I cannot disclose the contents of the report. The onward actions
should be taken according to the AG’s advice and I have not been a member of
the Monetary Board since the second week of November,” Dr. Samaratunga said.
Former Chairman of the parliamentary Committee on Public
Enterprises (COPE) MP Sunil Handunnetti noted that the reports could only be handled
by current Finance Minister Mahinda Rajapaksa since COPE had automatically been
dissolved with the prorogation of Parliament early this month.
“Now, there are no committee members and a new committee should
be appointed after the new sessions begin and therefore, former members cannot
use the reports or take any decision on it,” he stressed.
“The committee was scheduled to meet on the day the Parliament
was prorogued to discuss the report. The AG has advised that the contents
should be carefully viewed by the members of COPE and the Finance Minister. But
it was only an opinion and since it has already become a parliament document,
the members could take a decision on the report,” Handunnetti explained.
“But since there is no COPE at present, the sole responsibility
is vested with the Finance Ministry,” he added. When asked whether the COPE
Chairman had seen the report, Handunnetti noted that he had not opened the
report since it was scheduled to be opened at the meeting.
The three reports in question are among a total of five forensic
audit reports which were commissioned by the Central Bank, which are listed
below:
1. Issuance of Treasury
Bonds during the period from 1 January 2002 to 28 February 2015 by the Public
Debt Department
2. Primary and secondary
market transactions of the EPF involving Treasury Bonds issued/transacted
during the period from 1 January 2002 to 28 February 2015
3. Transactions of the EPF
from 1 January 1998 to 31 December 2017 in listed and unlisted equities
4. Issuance of Treasury
Bonds and remittance of funds received to the General Treasury during the
period from 1 February 2015 to 31 March 2016 by the Public Debt Department
5. Conduct of the supervisory and regulatory role by the Superintendent of Public Debt/Director, Supervision of Non-Bank Financial Institutions pertaining to selected Primary Dealers from 1 January 2009 to 31 December 2017
Well, this is what looks like when well-connected corrupted individuals
come to power, Rajapaksa regime always finds a way to cover up its fault by
turning the lawmakers into their pocket. Corruption can be stopped if we work
for political system change in Sri Lanka. As a well-wisher of this country and
dedicated Journalist, we had sent printed copy this article to the new
President Gotabaya Rajapaksa to get prompt action. Let us see how he initiate
his “one country one law” Election theme.
Polito’s News
