Regulatory failure of epic proportions

Thursday, 9 April 2026 00:05 - - {{hitsCtrl.values.hits}}

A simple but diligent asset verification at the NDB at its Annual audit would have revealed the fact that these amounts of Rs.13,200 million were fictitious assets that do not exist.

The Internal Auditor, the Bank’s Audit Committee, and the Bank’s Board have been reckless or incompetent.

The Central Bank does an on-line verification of Banks’ financial statements on a regular basis. These fictitious assets have obviously escaped their attention as well. Therefore, the CBSL has also been highly negligent and/or reckless.

The conversion of the spoils to crypto is said to have been done by a “ghost” as per FB stories floating about. If so, it is unlikely that this “ghost” would have assisted or carried out this fraud only at the NDB. It is very likely that similar frauds may have taken place in other Banks as well.

Overall, this NDB fraud seems to have its foundation in a regulatory failure of epic proportions.

The contagion effect of this fraud could spread to other banks as well, as it is a systemic failure, and the Central Bank and its Governing Board must be held responsible and given the immediate sack.

As Chairman and Board members are accountable and responsible together with oversight committees they all should be sacked together with Deputy Governor of Banking supervision of CB.

J.R. Colombo 7