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Treasury bonds: Parliament can act on forensic audit reports, say officials
With all the documents released to Parliament by the Central Bank on the forensic audits on Treasury bonds, the Speaker can instruct the Attorney General to file a case against those implicated in the losses from Treasury bond sales, officials familiar with the process, said.
This, however, can happen only after Parliament debates the five audit reports on February 18-19, and until then there is unlikely to be any movement on these reports, one official said.
The five forensic audit reports revealed details of billions of rupees in losses from Treasury bond sales between 2002 and 2016, periods covering the former Mahinda Rajapaksa and previous Maithripala Sirisena-Ranil Wickremesinghe governments.
“However, it is likely that the findings of the forensic audits will be confined only to a parliamentary debate, and no judicial action will follow thereafter on its outcome, as the affiliates of both the present government and the opposition have been accused in this great bond robbery,” said the senior official at the Auditor Generals (AG) Department who was actively involved in the preparation of the investigation report on the Central Bank Bond issue from February 2015 to May 2016. He declined to be named.
The material including annexure and exhibits along with forensic reviews are now available publicly providing sufficient information to take legal action against perpetrators, he revealed.
He noted that most of the 18 plus recommendations made in the AG’s investigation report have been implemented by the Central Bank under the directions of previous Governor Dr Indrajit Coomaraswamy.
Central Bank Governor Prof W D Lakshman pointed out that the government is currently considering action, and the Central Bank will also have to take measures in accordance with the recommendations of the forensic audit.
Separate action will have to be taken by the judiciary and intelligence authorities with regard to findings in the report; he said adding that the Central Bank is still to take any action as it is now studying the very complex matter.
Senior Deputy Governor Dr Nandalal Weerasinghe noted that the Central Bank will be taking appropriate measures on the forensic audit recommendations relating to procedures and processes of bond transactions after studying the reports.
Former Chairman of the Committee on Public Enterprises (COPE) and MP Sunil Handunnetti told the Sunday Times that Prime Minister Mahinda Rajapaksa in his capacity as the country’s Finance Minister can direct the Attorney General to file a separate case making use of the forensic audit reports. This is possible as the Treasury Secretary is the Chief Accounting Officer in accordance with administrative regulations, he explained.
These reports will also be useful for the ongoing four Treasury bond cases, he said adding that this will never happen as the ruling party affiliates like Udaya Gammanpila have launched a media campaign to whitewash their own bond and EPF manipulators, Mr Handunnetti said.
“Through COPE’s scientific investigations the capacity for legal action has been strengthened. The forensic audit report was prepared on a request by COPE mainly for legal action. Therefore, making use of it is no waste of time and money spent on obtaining it,” Mr Handunnetti said.
As the forensic audit report has revealed information from the very beginning of frauds and irregularities in connection with bond transactions, it has confirmed significantly that the conflict of interests adversely affected the operations of the Central Bank.
Another important fact the forensic audit report on bond transactions points out is that the impact of the bond scam does not limit only to the Central Bank.
Former Finance Ministers Ravi Karunanayake and Mangala Samaraweera and State Minister Harsha de Silva are among those listed to speak on behalf of the UNP at the parliamentary debate.