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Legal action demanded against Rajapaksa administration's bond scammers

Six forensic audits into alleged treasury bond scams and mismanagement of a Rs. 2.2 trillion Employees’ Provident Fund (EPF) are to be completed this year, official sources revealed.

Public interest groups are now demanding the authorities to instigate legal and disciplinary action against all officers allegedly involved in treasury bond misappropriations since 1998, especially in the period between 2008-2016.

The six forensic audits were expanded to cover 2015 and 2016, but the Presidential Commission of Inquiry looking into the alleged bond scam recommended that the government inquire from the year 1998.

Holding a forensic audit examination on the EPF involvement in Treasury Bonds and Treasury Bills transactions from 2008-2014 was also recommended by the Commission.

BDO India and KPMG are conducting the forensic audits and five of those audits began in April this year.

Most of those audits are to be completed in two to three months and the longest audit will take at least six months for its completion.

One of the forensic audits has still not commenced as the Indian audit firm BDO was claiming a high fee of Rs. 900 million to conduct it.

Out of this amount, a sum of Rs. 1.5 million is needed only for the purpose of auditing phone calls.

Most of these telephone calls were in Sinhala and the content of it will have to be translated to English enabling the foreign audit firm to continue the auditing process.

The Cabinet Tender Committee appointed to select prospective bidders has awarded contracts to BDO India and KPMG at an agreed payment of Rs.250 million and it was approved by the Cabinet on March 6 this year.

However, all six audits are expected to be completed before the end of this year and necessary action would be taken by the Central Bank considering the outcome of the forensic audits.

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