CoPE summons ex-People’s Bank Chairman before Privileges Committee

Friday, 6 September 2019 00:12 - - {{hitsCtrl.values.hits}}

CoPE finds Fernando and Semasinghe ignored its directive
Allows ex-GM six month extension and retirement with two vehicles
CoPE orders Rs. 68 m paid to ex-GM be recovered

The Committee on Public Enterprises (CoPE) yesterday decided to summon former People’s Bank Chairman Hemasiri Fernando and Finance Ministry Additional Secretary R. Semasinghe before the Parliamentary Privileges Committee, for providing the bank’s former General Manager Vasantha Kumara a six-month extension, rather than removing him as instructed by CoPE.

During the CoPE investigation held in Parliament, it was revealed that CoPE had rejected the service extension request received from the People’s Bank earlier, and instead instructed Hemasiri Fernando and R. Semasinghe to allow Kumara to retire at the end of his term.

However, instead, Fernando and Semasinghe was found to have misled Ministers Lakshman Kiriella and Mangala Samaraweera, and to have given Kumara a six month extension – pointing out the need to train his successor, a senior officer who was with the bank for over 38 years – by CoPE yesterday.

Based on the seriousness of the issue, CoPE decided to summon both Fernando and Semasinghe before the Parliamentary Privileges Committee, for ignoring the directives issued. It was also decided to recover the monthly salary of Rs. 2.1 million, accumulated to Rs. 15 million inclusive of other benefits, paid to Vasantha Kumara for the six-month period, along with the two vehicles worth over Rs. 16 million from the Bank, along with salary arrears of Rs. 37 million. The officers, who were unable to recover the losses, will be penalised using the provisions available with the Audit Act.

According to the People’s Bank officers present before CoPE, it was accepted that the bank has Rs. 895.91 million worth of unrecoverable debt, reported by the end of 2018.

During the investigation, CoPE Chairman Sunil Handunnetti pointed out the salary of the People’s Bank General Manager is far higher than the standard salary paid in other banks in the country. “The six-month service extension incurred a loss of Rs. 15 million, and another Rs. 37 million, which had been paid as arrears to Vasantha Kumara. In addition, the Bank purchased a BMW worth Rs. 16.6 million for him. Vasantha Kumara subsequently retired with two vehicles. Where on earth do you find an official going home with two cars? How could you permit this sort of fraud?” he questioned.

In response, People’s Bank Chairman Nissanka Nanayakkara held that the retired General Manager had requested for the vehicle, highlighting some sentimental value.

“You have misled Ministers Lakshman Kiriella and Mangala Samaraweera. The Board of Directors has acted irresponsibly. They have overruled the directive given by CoPE, and thereby caused a massive loss to the Government. The person who should have been fired six months earlier, has been given a six-month service extension. You should be ashamed. Imagine the level of a person who, after cheating the bank by various means, goes home with two cars stating that he has sentimental value for one of them? There are many public officials who do not even dream of doing such things,” added MP Handunnetti. (AH)