SLC broadcast money from SA tour goes missing

Thursday, 4 October 2018 01:29 - - {{hitsCtrl.values.hits}}

By Madushka Balasuriya

Sri Lanka Cricket are in the process of recovering approximately $ 165,000 (Rs. 28 million) in broadcasting rights paid to them by Sony Pictures Networks for their recent home series against South Africa, after it came to light that the money had been wrongfully transferred to a bank account in the United States.

SLC were due approximately $ 1.1 million (Rs. 186.5 million) from Sony for the rights to the entire South Africa series. With the money due in three instalments, the first two payments are believed to have been received by SLC without a hitch, though the final 15% tranche never entered SLC’s accounts.

As per standard SLC procedure, the first and second instalments of broadcasting rights are paid before and during a tour, while the final instalment is paid upon conclusion of the series. Sri Lanka’s home series against South Africa ended on 14 August, however even midway through September SLC were oblivious to the accounting discrepancy.

It was only once SLC’s Chief Financial Officer – who was in charge at the time – was placed on indefinite leave last month, for his alleged role in an attempt to embezzle $ 5.5 million worth of broadcasting money due from Sony for the upcoming England tour, that SLC were alerted to the missing 15% tranche.

“We got to know only recently, immediately after that other [false] invoice [for the England Tour rights], we looked into previous transactions and discovered this,” SLC CEO Ashley De Silva told Daily FT. De Silva however was unable to confirm if the ousted CFO was connected to this latest incident.

As it stands the incident involving the England tour broadcasting rights is currently being investigated by the Criminal Investigation Department, while De Silva confirmed that SLC were in contact with the US bank in question to recover the funds from the South Africa tour.

In the meantime, SLC has also commissioned accounting firm Ernst & Young to conduct a special audit pertaining to the governing body’s ‘Media Broadcasting Rights and Receipts and Payments’ for years 2013-2018.