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Treasury bond scams:

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CoI recommendation regarding forensic audits yet to be finalized, available reports with AG, CIABOC

By Shamindra Ferdinando

Over three years after Supreme Court Judge K.T. Chitrasiri led Presidential Commission of Inquiry (PCoI) into Treasury bond scams handed over its report to then President Maithripala Sirisena, the Monetary Board is yet to complete recommendation in respect of forensic audits.

Of the recommended forensic audits, five had been completed at a cost of Rs 275 mn and the remaining one not commissioned yet. 

The Island recently sought an explanation as regards the delay in completing the recommended process from Director Communications, CBSL.

The Island: What is the status of the procurement process pertaining to the sixth forensic audit ordered by the CoI?

CBSL: The procurement process to select an audit firm to carry out the sixth forensic audit is underway.

The Island: Can you explain how forensic audits so far obtained at a cost of Rs 275 mn utilized by the CBSL?

CBSL: Copies of the five forensic audit reports have been submitted to relevant authorities including the Attorney General and the Auditor General to initiate actions, as necessary. As per the request of the Director General of CIABOC, certain reports were submitted to CIABOC. Further, the Monetary Board appointed an internal Task Force to facilitate and oversee implementation of the recommendations in the Forensic Audit Reports which entailed, among others, strengthening of processes, internal controls, etc.

The CoI comprised Supreme Court Justice K. T. Chithrasiri, the late Justice Prasanna S. Jayawardena and retired Deputy Auditor-General K. Vellupillai, while attorney-at-law Sumathipala Udugamasooriya functioned as its secretary.

The Monetary Board commissioned forensic audits in consultation with the Attorney General and the Auditor General to deal with issues subsequent to the CoI probe on the issuance of Treasury bonds during the period 01st February 2015 to 31st March 2016 and matters that had come to light over the recent years in audit reports and in findings of internal investigations pursuant to the exercise of certain regulatory and agency functions undertaken by the CBSL. The CBSL in response to a previous The Island query said that the procurement of the five forensic audits were carried out by a Cabinet Appointed Consultant Procurement Committee and the contracts were awarded to audit firms with a global practice and international experience in forensic auditing with the approval of the Cabinet of Ministers.

Former Chairman of the Committee on Public Enterprises (COPE) D. E. W. Gunasekera yesterday (30) told The Island that parliament owed an explanation as regards the implementation of recommendations, both of CoI as well as the forensic audits. Pointing out that parliament conveniently failed to debate the CoI report on Treasury bond scams perpetrated in 2015 and 2016, the veteran politician said the issue at hand could be taken up in spite of the Attorney General moving Colombo High Court against some of the Treasury scam suspects. Former CBSL Governor Arjuna Mahendran remained at large, the former minister said, urging both the government and the Opposition to be responsible in their response to the country’s biggest ever financial fraud.

Responding to another query, one-time General Secretary of the CPSL reminded the CoI report on Treasury bond scams wasn’t taken up for debate in spite of it being on the agenda paper of the parliament.

The former minister said that the incumbent government couldn’t absolve itself of the responsibility for properly utilizing forensic audits obtained at a staggering cost of Rs 275 mn. The outspoken retired politician emphasized that the 2019 Easter Sunday carnage, the alleged fraud in controversial duty reduction of sugar and a spate of other controversies, including import of contaminated coconut oil shouldn’t be allowed to divert attention away from Treasury bond scams.

Samagi Jana Balavegaya (SJB) lawmaker Dr. Harsha de Silva said that his party expected the Attorney General to act on the basis of CoI recommendations and the forensic audit reports. The former Deputy Minister noted that action had been initiated at the Colombo High Court Trial at Bar in respect of the Treasury bond scams.



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Sajith warns country is being dragged into authoritarian rule 

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa has alleged that the current government is attempting to suppress freedom of expression and media freedom to lead the country towards authoritarian rule.

In a video message on Thursday (25), Premadasa said that in a democratic country, the four main pillars safeguarding democracy are the legislature, the executive, the judiciary, and the independent media, but, at present, the government is using the police to violate both the democratic rights of the people and the rights of police officers themselves.

He said that the government is working to establish a police state that deprives citizens of their right to access truthful information.

“For democracy to be protected, media freedom must be safeguarded, and space must be given to independent media. Instead, the government is interfering with the independent media process, using the police to suppress and intimidate independent media,” he said.

He noted that even when independent media present their views based on reason, facts, and evidence, the government attempts to suppress them. Such actions, he said, amount to turning a democratic country into a police state. “Do not suppress the voice of the silent majority, the independent media,” he urged.

Premadasa emphasised that independent media represent the voice of the silent majority in the country and must not be suppressed.

“Media repression is a step towards authoritarian rule, and the people did not give their mandate to create an authoritarian regime or a police state. If the government attempts to abolish democratic rights, the Samagi Jana Balawegaya will stand as the opposition against it,” he said.

The Opposition Leader further alleged that the government was interfering with police independence, stating, “Political interference has undermined the independence of the police, making it impossible for them to serve impartially. Suppressing freedom of expression is an attempt to lead the country towards authoritarian rule.”

Premadasa pointed out that the media has the right to reveal the truth, and interfering with that right is a violation of the rights of 22 million citizens.

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Wholesale mafia blamed for unusually high vegetable prices  

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Vegetable prices at the Peliyagoda Manning Wholesale Market surged to unusually high levels yesterday (26), raising concerns among consumers as the festive season drives up demand. The situation is expected to persist over the next few days, a spokesman for the Manning Market told The Island.

He said a sharp increase in the number of buyers visiting the wholesale market, ahead of upcoming festivities, had resulted in a sudden spike in demand, prompting wholesale traders to raise prices significantly. The price hikes have affected a wide range of commonly consumed vegetables, placing additional pressure on household budgets.

According to market sources, the wholesale price of beans climbed to Rs. 1,100 per kilogram, while capsicum soared to Rs. 2,000 per kilogram. Green chillies were selling at around Rs. 1,600 per kilogram. Prices of other vegetables, including beetroot, brinjal (eggplant), tomatoes, bitter gourd, snake gourd and knolkhol, also recorded unusually high increases.

The spokesman alleged that despite the steep rise in prices, vegetable farmers have not benefited from the increases. Instead, he claimed that a group of traders, who effectively control operations at the wholesale market, are arbitrarily inflating prices to maximise profits.

He warned that if the relevant authorities fail to intervene promptly to curb these practices, vegetable prices could escalate further during the peak festive period. Such a trend, he said, would disproportionately benefit a small group of middlemen while leaving consumers to bear the brunt of higher food costs.

By Kamal Bogoda ✍️

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Cyclone-damaged Hakgala Botanical Garden reopened with safety measures

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Hakgala Botanical Garden

The Hakgala National Botanical Garden, which was closed in the aftermath of Cyclone Ditwah, has been reopened to tourists from yesterday, the Ministry of Environment indicated.

The Ministry said the reopening was carried out in accordance with recommendations and guidelines issued by the National Building Research Organisation (NBRO) and the DisasterManagement Centre (DMC) after safety assessments were completed.

However, due to the identification of hazardous ground conditions, several areas, within the garden, have been temporarily restricted. These include the pond area, near the main entrance, and access roads leading towards the forest park where potential risks were observed. Warning signs have been installed to prevent visitors from entering these zones.

To ensure the safety and convenience of both local and foreign visitors, the garden’s management has introduced a special assistance programme, with staff deployed to guide and support tourists.

The Hakgala Botanical Garden was closed as a precautionary measure during the disaster situation triggered by Cyclone Ditwah. The Ministry noted that the garden has now been safely reopened, within a short period, following remedial measures and inspections, allowing visitors to resume access while maintaining necessary safety precautions.

By Sujeewa Thathsara ✍️

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