Treasury lost Rs. 1.6b in Bond auctions claims AG

Friday, 1 July 2016 00:50 - - {{hitsCtrl.values.hits}}

Untitled-5 The Auditor General of Sri Lanka has concluded that the Treasury had lost a cumulative Rs. 1.6 billion from two controversial Treasury Bond auctions and found that Governor Arjuna Mahendran had failed to exercise “due professional care” demanded by his position.

According to sections of the Auditor General’s report to the Committee on Public Enterprises that were leaked on the internet and shared across social media yesterday, the Treasury lost an estimated Rs. 889.3 million in the February 2015 bond auction and an estimated Rs. 784.8 million in the March 2016 bond auction that his Department was commissioned to audit. “It has been concluded that authorities must take responsibility for the failure to prevent these losses,” the leaked report, dated 29 June 2016 states.

“According to information obtained by the Auditor General in drafting this report and as revealed in the preceding paragraphs, it has not been found that in the exercise of his duties, the Central Bank Governor has maintained the standards of due professional care expected of his position” the leaked version of the report states.

The special audit of the February 2015 and March 2016 Treasury Bond auctions was commissioned by COPE. (DB)