New lawyers-committee to probe Central Bank, Treasury, accountants
View(s):A new committee of lawyers has been appointed by Prime Minister Ranil Wickremesinghe, this time to probe the affairs of the Institute of Chartered Accountants, Treasury, Central Bank and the Registrar of Companies in a move that has raised concerns from veteran lawyers.
The committee comprising Harsha Soza – PC, Vinodh Wickramasooriya and Roshaan Hettiarachchi, has been mandated to ascertain whether there has been any ‘act or omissions” by these four institutions pertaining to their duties and monitoring role of the securities market (stock market), commercial banks and other financial institutions.
“How can you appoint ad hoc committees which are not sanctioned with judicial authority, don’t have any statutory powers or mandated by parliament to examine the role of agencies with regulatory functions,” asked a top lawyer and President’s Council, adding “appointing these private like committees is setting a dangerous precedent”.
In a public notice published last week, the Secretary to the Committee has invited public representations before July 6 pertaining to this probe. Interestingly the Securities and Exchange Commission (SEC), which just like the Central Bank plays the role of a regulator, has not been brought under the purview of the committee though the stock market has, in the past, been mired in irregular transactions and many acts of omission.
The notice said the committee has been appointed to “inquire into any act or omissions committed by the Treasury, Central Bank, Institute of Chartered Accountants and its members and the Registrar of Companies in carrying out the duties, powers and functions assigned to them by law including any fiduciary, regulatory and monitoring duties, powers or functions with regard to (a) the Securities Market, (b) commercial banks (c) other financial institutions”.
Another respected legal luminary, who also declined to be identified, said committees like this don’t have any authority to compel officials of the Central Bank, Treasury or allied state agencies to present themselves for an inquiry unless they volunteer to do so (just like in the case of the Central Bank Governor Arjuna Mahendran in the Treasury bond case).
Earlier a committee of lawyers, connected to the United National Party, was appointed to probe the controversial Treasury bond issue. In a report that was presented to parliament, the committee said there was no direct involvement in the issue by the Governor but said a comprehensive investigation was needed into this bond sale and other bond issues in the past.
The legal luminary said while that there may be wrongdoing in these institutions, such affairs can only be probed by legally-authorised bodies. “Otherwise committees of lawyers or civil society personalities can also be appointed to probe for example the Attorney General’s Office or the Police,” he said. (Feizal)