CB forensic audit shows only losses, not fraud: Aluthgamage

• Claims report only indicates losses before 2015, does not prove any illegal activity by former Govt. 

By Nuwan Senarathna

A Government spokesman yesterday contended that the forensic audit on the Central Bank bond sales indicated that there was a loss to the Government but the loss was not an indication of fraud in bond sales or auctions conducted before 2015.

The Monetary Board, in consultation with the Auditor General and the Attorney General, took measures to commission six forensic audits pursuant to the recommendations of the Presidential Commission of Inquiry appointed to investigate and inquire into and report on the issuance of Treasury bonds during the period 1 February 2015 to 31 March 2016. 

Power State Minister Mahindananda Aluthgamage

Speaking to media at the Power and Renewable Energy Ministry, Government spokesman and State Minister Mahindananda Aluthgamage argued that while the information contained in the forensic audit reports were important, it did not necessarily follow that the losses were a result of fraud. 

“Since the forensic audit reports have shown there is a loss to the Government, people immediately believe that this loss was caused by corrupt activities. But this is not the case. Just because there is a loss does not mean there was fraud,” Aluthgamage said.

The State Minister also alleged that the forensic audit had been given to an international company by the Monetary Board of the Central Bank, and that the Monetary Board members were partial to Perpetual Treasuries owner Arjun Aloysius. 

However, the Central Bank earlier this month said they had undertaken the forensic audits as part of the recommendations given by the Presidential Commission of Inquiry report, and that the procurement of the five forensic audits were carried out by a Cabinet-appointed Consultant Procurement Committee, and the contracts were awarded to audit firms with a global practice and international experience in forensic auditing with Cabinet approval. 

Aluthgamage also argued the audit report did not mention if any illegal activities were conducted during the period before 2015.

“We always fought against the Central Bank bond scam and demanded proper investigations into the incident. If there were any illegal activities that took place during our time, legal action should be taken against those responsible as well,” he added.

Pic by Lasantha Kumara