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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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Enter correct age of children when setting up email accounts for them- Police Crimes Division

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Officials of the Police Crime Division told the Sectoral Oversight Committee on Reconciliation and National Unity that email accounts for school children should not be set up giving parents details but by entering the correct age of the children.

The officials pointed out that as online education has become a necessity it was necessary to provide the children with mobile phones (Smart Phone active) to access computer devices. However, they pointed out that by providing the parents’ data for this purpose when giving smart phones and setting up email accounts, the children will have the opportunity to access any website. But, if the information including the correct age of the children are provided, the internet system itself will control the ability and access of the children to view inappropriate videos and websites.

The Sectoral Oversight Committee on Reconciliation and National Unity met under the Chairmanship of Member of Parliament Dilan Perera in order to discuss the program to be carried out in collaboration with the National Reconciliation and Children and Women Bureau .

 

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New legislation being drafted to address land, labour, capital and technology laws – Presidential Advisor

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Addressing the Panel Discussion of the National Law Conference 2023, Presidential Advisor Dr. R.H.S Samaratunga, emphasized the need for a comprehensive review of land laws, labour laws, capital laws, and technology laws in order to meet the requirements of a competitive economy. He noted that the Presidential Secretariat is currently examining a series of new legislation drafts that address these four crucial sectors.

The National Law Conference 2023/24 was held from June 02 to June 04, 2023 at The Grand Hotel, Nuwara Eliya. The 2nd segment of the conference focused on sectoral views on strengthening the economy and a number of local and foreign key stakeholders gave their comments. They also commended the effort of the BASL in organizing such a conference and appreciated the government’s genuine efforts to recover the country from the crisis and extended their support in rebuilding the country focusing on areas in which they could contribute to.

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March 12 Movement, MP Rajakaruna ask Prez to sack gold-smuggling MP

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By Shamindra Ferdinando

Declaring that Muslim National Alliance (MNA) MP Ali Sabri Raheem couldn’t continue to be an MP after being fined for an abortive attempt to smuggle in Rs 78.2 mn worth of gold and smartphones, the March 12 Movement has appealed to the executive, legislature and the judiciary to sack the MP, who, they say, has brought Parliament into disrepute.

Civil society activist Rohana Hettiarachchi, on behalf of the March 12 Movement, told The Island that MP Raheem should be dealt with the way the late President J.R. Jayewardene had handled the case of Kandy District UNP MP Anura Daniel. Jayewardene had removed MP Daniel, who was nabbed for a similar smuggling offence, Hettiarachchi said, urging President Ranil Wickremesinghe to take the initiative.

Pointing out that Customs had fined MP Raheem Rs 7.4 mn over two weeks back, Hettiarachchi found fault with the President and Parliament for failing to take tangible measures in that regard. The All Ceylon Makkal Congress (ACMC), which fielded Raheem from the Puttalam District at the last parliamentary election (2020), couldn’t absolve itself of the responsibility for the MP’s despicable action, Hettiarachchi said.

Vanni District MP Rishad Bathiudeen, who entered Parliament on the SJB ticket, is the leader of ACMC.

Hettiarachchi, who is also the Executive Director of PAFFREL (People’s Action for Free and Fair Elections), said that the government conveniently forgot to investigate whether MP Raheem smuggled in gold, smartphones or any other items on earlier occasions, since he entered Parliament. Since 01 March this year MP Raheem had gone abroad (to Dubai) on five occasions before he was caught, Hettiarachchi said, finding fault with Parliament for not going the whole hog.

There should have been no holds barred investigation, Hettiarachchi pointed out and said Customs owed an explanation why a maximum fine was not imposed on the gold smuggling MP. Instead, the MP was fined Rs 7.4 mn and allowed to proceed to Parliament where he voted against a government motion.

Hettiarachchi said that the Customs response to the detection should be examined taking into consideration Customs (Amendment) Act (No 83 of 1988).

Responding to another query, Hettiarachchi said that in spite of leaders of several political parties requesting the Speaker Mahinda Yapa Abeywardena to take up this issue, the Speaker seemed to be determined not to get involved.

SJB MP Harshana Rajakaruna yesterday told The Island that though ACMC nominee Raheem entered Parliament on the MNA ticket, only President Ranil Wickremesinghe could compel the offending MP to quit Parliament. “That is the reality,” the Gampaha District MP said, pointing out that MP Raheem served the Wickremesinghe-Rajapaksa administration.

Recalling how MP Raheem voted for the 21 Amendment to the Constitution in October 2020, MP Rajakaruna said that the MP also voted for Ranil Wickremesinghe at the House vote to elect an MP to complete the remainder of ousted President Gotabaya Rajapaksa’s five-year term.

MP Raheem voting with the Opposition on the motion to remove Janaka Ratnayake as the Chairman of the Public Utilities Commission hadn’t changed the relationship between the two parties (the government and the MNA), MP Rajakaruna said. According to him, those responsible turned a blind eye to the incident.

Civil society member Hettiarachchi said that they sought information relating to MP Raheem’s case from Customs in terms of the RTI (Right to Information) Act as the crux of the matter is the imposition of a lower fine regardless of the provision to declare harshest fine in terms of Customs law.

Hettiarachchi raised the possibility of the government interfering with MP Raheem’s case as there couldn’t be any other reason for Customs to impose a relatively lower fine.

MP Raheem is on record as having claimed that Customs fined him Rs 7.4 mn whereas a close associate of him who smuggled the undisclosed gold and smartphones was fined just Rs 100,000.

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