Committee appointed to investigate irregularities in four State banks

• Four-member committee appointed to oversee allegations at BOC, People’s Bank, NSB, and RDB
• Cabinet approval given for committee; report to be presented to Finance Minister in three months  

A committee has been appointed to investigate alleged irregularities, inefficiencies, and malpractices that occurred in four State banks during the past five years, the Finance Ministry said in a statement yesterday.

According to the statement, a four-member committee has been appointed to investigate the irregularities and malpractices that may have occurred since 8 January 2015 in Bank of Ceylon, People’s Bank, National Savings Bank, Regional Development Bank and affiliated institutions. The committee will also identify officials and outside parties responsible for financial losses.

The Finance Ministry added that the committee will also present recommendations on legal, financial, and administrative measures required to ensure such malpractices do not occur in the future as well as recommendations on offering an improved service through the State banking system.

The committee is led by former High Court Judge Sisira Rathnayake, with a representative of the Finance Ministry acting as the Secretary. The remaining members of the committee are Chartered Accountant Susantha de Silva and retired Additional Auditor General W. Premananda. They will be required to present their recommendations in three months’ time.

The statement added that Finance Minister Mahinda Rajapaksa’s proposal on strengthening the country by increasing the efficiency of the State bank system while investigating irregularities has received Cabinet approval. 

Ahead of the Parliamentary Election a group of bank unions met Rajapaksa and during the meeting had drawn his attention to alleged irregularities and malpractices within State banks. At the meeting Rajapaksa agreed to appoint a committee to probe the alleged irregularities.