Cabraal questions validity of Central Bank Forensic Audits

Former Governor of the Central Bank of Sri Lanka(CBSL), Ajith Nivard Cabraal today questioned the validity of the Forensic Audit reports on the CBSL Treasury bond investigation.

Cabraal was speaking to reporters following the launch of his book on the 2015 Central Bank bond scam today(4)

Asked what he had to say about the Forensic Audits on the CBSL Treasury bond investigation, he said the Auditor General should have overlooked the forensic auditing process.

“How can the CBSL overlook the audits if it is the entity under question? There is conflict of interest here,” Cabraal pointed out.

Cabraal who served as Governor CBSL, under the Rajapaksa regime further noted that his book reveals the actual loss to the Central Bank from Bond Scam.

Following the probe into the controversial Rs. 11 billion Bond Scam of February 2015, the CBSL commissioned two international Auditors, BDO India and KPMG to conduct Forensic Audits (FA) on the issuance of Treasury Bonds and transactions of the Employees’ Provident Fund (EPF) between January 1998 and December 2017 dating back to the Rajapaksa regime and the Bandaranaike regime.

A staggering Rs. 900 million was paid to the Auditors for five Forensic audit reports.

The Sunday Morning reliably learnt last week that forensic audits uncovered losses amounting to Rs. 19 billion from the period between 1998  to December 2017.

These losses are detailed in three out of five reports relating to the issuance of Treasury Bonds between January 2002 to February 2015, primary and secondary market transactions of EPF between January 2002 and February 2015, and EPF transactions in listed and unlisted equities between January 1998 and December 2017.