CB chief denies delays in forensic audits

Thursday, 3 January 2019 02:29 - - {{hitsCtrl.values.hits}}

Says process has been continuing since Jan. 2018, likely to start in Feb.
Expects it to be completed by end 2019 but first report possible in four months
Says interim report to update President was sent to Presidential Secretariat on 26 Oct.
Presidential Comm. report says audits for CB purposes, AG must decide if reports are used for legal needs

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday denied delays in commencing six forensic audits that were recommended by the Presidential Commission of Inquiry into irregular bond transactions.

Dr. Coomaraswamy denied statements made by President Maithripala Sirisena that the forensic audits had been intentionally delayed, pointing out that it involved a cumbersome process the Central Bank had embarked on immediately after it had received the Presidential Commission report.

“Work was started after the report was issued in January. This is a very complicated process. First we had to look at the recommendations of the Presidential Commission, and determine what we should do about it. Then we had to work out the terms of reference for the six forensic audits, which we did with the assistance of the Auditor General. After that we had to call for Expressions of Interest from people who have the international expertise to undertake this type of exercise. The proposals that were submitted are now being evaluated. All this had to be done in a very careful way, because if the process is even a little wrong, someone can go to court and the whole thing will have to start again. So you can’t rush these things,” he said.

The Cabinet-appointed Consultant Procurement Committee has also been extremely careful, and they were working with the Central Bank to ensure due process is followed, the Governor said. The process is expected to be completed by February, and the contracts would then by awarded for the six forensic audits, and each would investigate different periods of time. Both he and Senior Deputy Governor Dr. Nandalal Weerasinghe denied that the amount of losses had been mentioned at the meeting with President Sirisena.

“If things move according to the schedule, everything will be completed by the end of this year. But we should complete some in three or four months. We are also asking for interim reports from each of the audits. About three or four months ago, we had a meeting with the President and explained the process to him. An interim progress report was sent to the Presidential Secretariat on 26 October,” he added.

The Governor pointed out the Commission recommended the forensic audits to identify areas that the Central Bank could improve on, and did not necessarily link to investigations being done on the bond scam. He noted that the results of the forensic audits would eventually come under the purview of the Auditor General, and the Central Bank’s role was simply to facilitate the process by handing over documents and other information. A decision on whether the audits would be used for legal purposes would have to be decided by the Attorney General, once they are completed.

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