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Five-way tie for first place in Transparency in Corporate Reporting (TRAC) Assessment 2023 by TISL
John Keells Holdings PLC and Teejay Lanka PLC who ranked first in previous Transparency in Corporate Reporting assessments are joined this year by Ceylon Tobacco Company PLC, Dialog Axiata PLC, and Dilmah Ceylon Tea Company PLC who have all achieved the full score for transparency in corporate reporting, while 27 companies are considered ‘Significantly Transparent’ in corporate reporting as per the latest TRAC assessment by Transparency International Sri Lanka (TISL).
TISL has been conducting the Transparency in Corporate Reporting (TRAC) Assessment since 2020 and has continued to do so annually. For the first time this year, there is a five-way tie for first place in corporate reporting among the top 125 public limited companies in Sri Lanka (based on market capitalisation on the Colombo Stock Exchange as of July 5th, 2023).
The TRAC 2023 Report, unveiled on Thursday (15), reveals that companies evaluated this year have achieved an average score of 5.85 out of 10. This marks a slight overall improvement compared to the previous year’s assessment, reflecting advancements in corporate transparency and reporting practices.
The TRAC Report 2023 assessed companies on their corporate disclosure practices in several important areas crucial to fighting and preventing corruption: reporting on anti-corruption programmes, organisational transparency, domestic financial reporting, reporting on gender and non-discrimination policies, country-by-country reporting, and reporting on procurement related to government contracts/tenders. Companies were then scored on a scale of 0-10, (10 being the highest and 0 being the lowest) based on publicly available information and were categorized into six groups as “Fully Transparent, Significantly Transparent, Moderately Transparent, Partially Transparent, Slightly Transparent, and Least Transparent” according to the level of transparency in their corporate disclosures. Companies were also given with the opportunity to provide feedback on their initial scores.
While congratulating the high scorers of the assessment, it is important to note that the TRAC report assesses transparency in corporate disclosures, and does not assess the actual implementation of companies’ anti-corruption policies or programmes. Therefore, a low score does not necessarily mean that a company does not have strong anti-corruption programmes, nor does it indicate any wrongdoing on the part of the company. Conversely, a high score may not always reflect operational and implementational success of anti-corruption programmes, but merely reflects strong disclosure mechanisms pertaining to anti-corruption, organisational transparency, domestic financial reporting, and policies on gender and non-discrimination.
TISL’s expectation is that periodic TRAC assessments will encourage companies to improve standards of integrity and transparency in business. The most important objective of this assessment is to encourage companies to incorporate and strengthen anti-corruption practices and to make this information publicly available.
As much as public sector corruption is a serious problem, so too is private sector corruption, wherein private sector actors can often be silent colluders or enablers of much larger public sector corruption. The newly enacted Anti-Corruption Act of 2023, for the first time in Sri Lanka recognizes bribery in the private sector as a punishable offence. This is further strengthened by the revised Listing Rules of the Colombo Stock Exchange, under which listed companies are required to adopt and maintain whistle-blower policies and anti-bribery and corruption policies and to make disclosures on said policies.
“Assessing corporate transparency through TRAC assessments will not address all grand corruption cases in Sri Lanka, as TISL also conducts research, engages in litigation and conducts other programmes and initiatives such as trainings on Anti-Bribery and Corruption for the private sector, to raise further awareness to address the issue of corruption. Nevertheless, corporate transparency is one step that companies can take to reduce the risk of corruption within their organisations” said Nadishani Perera, Executive Director, TISL. She continued to state that “Companies must commit to abide by the new regulatory standards, whilst also self-regulating to maintain higher standards than the minimum requirements. As such, periodic reviewing of corporate disclosures serves as a strong motivator for companies to regularly review their policies and improve their disclosures.”
News
Open hearing on coal procurement inquiry set for July first week
Open hearing of evidence into alleged irregularities in coal procurement is scheduled to begin in the first week of July, while the Presidential Commission of Inquiry continues recording statements from relevant officials, investigators said.
So far, the Commission has recorded statements from around 40 government officials, including members of procurement committees and other personnel attached to institutions involved in coal-related transactions.
Officials said that, depending on evidence gathered during the ongoing inquiry, statements may also be obtained from former ministers if required.
The Commission has also received 28 complaints in connection with alleged irregularities in coal imports and related procurement processes.
President Anura Kumara Dissanayake on April 17 appointed a three-member Presidential Commission of Inquiry under the Special Presidential Commissions of Inquiry Act No. 07 of 1978 to probe alleged malpractice in coal imports and electricity generation since the inception of coal-based power generation up to April 16, 2026.
The Commission is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Judge Aditya Patabendige and High Court Judge Sanjeewa Somaratne serving as members. Former State Ministry Secretary P.V. Bandulasena acts as Secretary to the Commission.
The inquiry covers alleged procurement irregularities, possible financial losses to the State, import of substandard coal, quality inspection failures, contractual breaches and operational issues in power generation, including whether corrective measures were taken where necessary.
It will also identify responsible political authorities, officials of Sri Lanka Coal Company (Private) Limited and suppliers, while recommending legal or administrative action and measures to prevent future lapses.
Meanwhile, the Committee on Public Enterprises (COPE) is also preparing to table its report on coal procurement in Parliament, with officials from relevant institutions having been summoned during its proceedings. COPE Chairman MP Dr. Nishantha Samaraweera said audit findings had also been considered, and any matters requiring further investigation would be referred to law enforcement and anti-corruption authorities.
News
TNA MP calls for complete repeal of PTA
Trincomalee District TNA MP Shanakiyan Rasamanickam has submitted a motion to Parliament calling for the immediate repeal of the Prevention of Terrorism Act (PTA), arguing that the controversial law has enabled arbitrary detention, torture and the targeting of minority communities for more than four decades.
In his motion, now published in the Addendum to the Order Book of Parliament, the MP urged the Government to repeal the Prevention of Terrorism Act, No. 48 of 1979, in its entirety and refrain from introducing any replacement legislation containing similar provisions.
Rasamanickam contended that the PTA had been used for over 40 years to facilitate prolonged arbitrary detention and to obtain false confessions through torture. He further alleged that the law had disproportionately affected minority communities and civil society groups.
The motion states that there is no justification for maintaining a permanent counter-terrorism law that grants sweeping powers to the authorities.
The TNA legislator argued that existing legal provisions were sufficient to address security threats, noting that terrorism-related offences could already be prosecuted under the Penal Code.
He also pointed out that the Government retained the power to declare a state of emergency when circumstances warranted extraordinary measures, rendering a permanent anti-terrorism framework unnecessary.
Accordingly, the motion calls on Parliament to resolve that the Government take immediate steps to abolish the PTA without replacing it with legislation containing comparable powers.
The Prevention of Terrorism Act, enacted in 1979, has long been the subject of criticism from human rights organisations, civil society groups and international bodies, which have raised concerns over provisions relating to detention without trial and safeguards against abuse.
News
Assistant manager, security officer held over Horana bank cash robbery
An assistant manager and a security officer attached to a state bank branch in Horana have been arrested in connection with the robbery of more than Rs. 30 million that was being transported to replenish automated teller machines (ATMs), Police said.
The two suspects were taken into custody on Friday after statements were recorded from them regarding the incident, which occurred on Wednesday afternoon at the Horana branch of the People’s Bank.
According to Police, a bank employee was carrying two bags containing cash through the rear entrance of the bank at around 2.45 pm when an individual who had arrived on foot allegedly snatched the bags and fled the scene.
The stolen money, amounting to approximately Rs. 30.5 million, had been prepared for distribution to ATM machines and transportation to other bank branches. Earlier reports had estimated the loss at around Rs. 35 million.
Investigators subsequently arrested a suspect believed to have been directly involved in the robbery and recovered Rs. 17 million of the stolen cash.
Police have not disclosed the exact circumstances that led to the arrest of the assistant manager and security officer but said investigations uncovered information linking them to the incident.
The Western Province North Crime Division is conducting further investigations to determine whether additional suspects were involved and to recover the remaining stolen money.
The daring daylight robbery has raised concerns over security procedures employed during the transportation of large sums of cash from banking institutions.Further investigations are continuing.
by Norman Palihawadane ✍️
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