{"id":138059,"date":"2015-01-28T07:56:51","date_gmt":"2015-01-28T02:26:51","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=138059"},"modified":"2015-02-07T05:24:19","modified_gmt":"2015-02-06T23:54:19","slug":"paikiasothy-saravanamuttu-cpa-slip-white-collar-crime-under-executive-summary-carpet","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/paikiasothy-saravanamuttu-cpa-slip-white-collar-crime-under-executive-summary-carpet\/","title":{"rendered":"Paikiasothy Saravanamuttu & CPA Slip White-Collar Crime Under ‘Executive-Summary’ Carpet"},"content":{"rendered":"

Painstaking efforts by the all-powerful Executive Director of the Center for Policy Alternatives<\/span><\/a> (CPA) Dr. Paikiasothy Saravanamuttu<\/span><\/a> have failed to cover up the organization\u2019s white collar crimes, Colombo Telegraph can reveal today.<\/p>\n

\"Dr.<\/a>

Dr. Paikiasothy Saravanamuttu<\/p><\/div>\n

On October 10, 2014, Colombo Telegraph exposed corruption related to CPA<\/span><\/a> \u2013 billing for un-held workshops, double billing scandals; i.e getting grants from two donors to do the same task and duplicating receipts, hotel bills and other bills to submit to donors (perhaps even submitting same bills to multiple donors), and hoodwinking donors by filing expenses under safe cost columns.<\/p>\n

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The particular Expos\u00e9 was related to cheating two donors; the European Union (EU) and the United Nations\u2019 Educational Scientific and Cultural Organization (UNESCO)<\/p>\n

Colombo Telegraph had continuously raised the issue with the CPA related to serious allegations – non compliances with standard procedures, fraudulent transactions and unethical practices committed – since 8th of June, 2014, giving the organization every opportunity to clarify and clear its name if indeed it had done no wrong. Unfortunately the CPA indulged in time-wasting tactics totally at odds with the organization\u2019s rhetoric on transparency and accountability. The CPA never offered a comprehensive response.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Instead of responding to us, on December 13, 2014 the CPA denied any wrongdoing, supporting the claim by publishing an Executive Summary of a \u2018forensic\u2019 report by a company called Corporate Doctors (Pvt) Ltd,<\/p>\n

The report itself is said to be 22 pages long. The compilers of the report offer the following disclaimer: \u201cthe executive summary is prepared based on the detailed report attached in Annexure 1 with a view of providing an overview of the outcome of the engagement to the reader. Therefore in case of any ambiguity or misunderstanding noted in the executive summary, the full version of the report given in Annexure 1 should be referred which should be taken as final.\u201d<\/p>\n

Colombo Telegraph urged the CPA to publish the full report since the executive summary published hardly cleared the CPA given information held by us and shared with the CPA. We did so since the published document itself essentially urges readers to refer to the full report if further clarification was required.<\/p>\n

Instead of responding to our request the CPA has deleted its post form CPA\u2019s official Facebook page. We copied the deleted post prior to the deletion. (Click here<\/span><\/a> to see the deleted posts).<\/p>\n

The Executive Summary of their findings can be read here<\/span><\/a>.<\/p>\n

Now let\u2019s examine the conclusions of the so called forensic auditors.<\/p>\n

Based on the available information and documents considred[sic] in above audit procedures applicable to the period covered in the audit scope, we could confirm that:<\/strong><\/p>\n

1.<\/strong>\u00a0We have not found any duplicate payments made by CPA relating to the cocktail party held in Galle Face Hotel (GFH). CPA has paid only once against an \u201cAccounst [sic] Statement\u201d issued by Galle Face Hotel in the name of Namal Perera of CPA. The fate of the bills exhibited in the website were not known but we did not find any proof of using any of them for making the payment to GFH or in claiming this expense from the Donor European Union(EU). This payment had been claimed only from one Donor i.e. EU. Therefore we conclude that duplicate payments not made to vendor and this payment was claimed only one time from EU.<\/strong><\/em><\/p>\n

CT comment:<\/p>\n

If \u201cthe fate of the bills exhibited in the website were not known but we (the auditor) did not find any proof of using any of them for making the payment to GFH or in claiming this expense from the Donor European Union (EU)\u201d, did they contact the Galle Face Hotel to find out the authenticity of the bills published by the CT?<\/p>\n

\u201cCPA has paid only once against an \u201cAccounst [sic] Statement\u201d issued by Galle Face Hotel in the name of NamalPerera of CPA .\u201d We have never said the CPA paid several times to Galle Face Hotel. Our question was, \u2018Why did the CPA obtain different bills from Galle Face Hotel instead of submitting the original bill?\u2019 What has Namal Perera had to do with this particular project? He had no engagement whatsoever with this project. He worked under Sanjana Hattotuwa<\/span><\/a> in a project called \u201cvoice of reconciliation\u201d \u2013 a multi million Canadian dollar project funded by “The Institute for Media, Policy and Civil Society” (IMPACS), where various corruptions took place. The project funded and initiated the website Groundviews. CPA was about to go bankrupt due to Hattotuwa\u2019s handling of the funds. Did this auditor interview Namal Perera? Have they checked the financial reports submitted to the IMPACS to find out if indeed there was double billing?<\/p>\n

There is another question that went unanswered. The original bill issued by the GF Hotel says it is for 60 people (BQT Cocktail reception) The bill under Namal Perera\u2019s name says; \u201c\u201cBQT \u2013 National Meeting Dinner for 100 people\u201d. Why is that?<\/p>\n

(Click here for the original bill which says for 60 people part one<\/span><\/a> \u2013 part two<\/span><\/a> , click here for the second bill and third bill<\/span><\/a> and click here for the fourth bill<\/span><\/a> which says \u201cBQT \u2013 National Meeting Dinner for 100 people\u201d).<\/p>\n

2. According to different invoices issued by GFH as quoted by CT website, there had been a liquor related amount of Rs.66,547\/50 included in the total bill of Rs. 152,047\/50 paid to GFH. We are unable to confirm whether CPA produced the Account statement or any of the bills issued by GFH published in CPW for claiming reimbursement as we have not inspected any acknowledged copies of claim documents. However, we have inspected the report issued by EU auditors Moore & stephens (Chartered Accountants) on the said project, who have not given any adverse comments about not producing any claim documents. Further, we did not find any specific prohibition on claiming \u201cliquor related\u201d expenses under the \u201celigible costs\u201d described in article 14 of the EU contract conditions. Therefore, we can not conclude that CPA has cheated the donors by submitting bills with incorrect descriptions.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

Of course you cannot find out those original bills in the CPA accounts, because they have not submitted original bills to the donors. How can EU auditors raise those issues, since they could not have been aware of alcohol consumption with CPA submitting camouflaged duplicated bills? Obviously these \u201cforensic doctors\u201d have no knowledge about EU guidelines. Every time EU funded projects, they conduct special training to project coordinators and the accountants in beneficiary organizations. Did this auditors question the CPA accountant or EU to find out whether it is in line with EU policies or not to use EU money for the purchase of alcohol? Claiming for alcohol is not possible and this is why the CPA managed to obtain camouflaged bills hiding the actual spending.<\/p>\n

3.\u00a0Invoice from Havelock Bungalow matches very closely with the activities of CPA project and the same amount paid to this vendor by an employee of CPA had been reimbursed by CPA as a cost of dinner and the full amount claimed from EU. The invoice published in CTW had many liquor items and was not found in CPA records. Since the contract conditions did not prohibit claiming liquor bills we conclude that there was no fraudulent manipulation in claiming them from the donor.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

Of course the auditors cannot trace the original bill since the CPA submitted camouflaged duplicated bills. Did the auditors request the relevant information from Havelock Bungalow to find out whether the Bill published by the CT is authentic or not? Auditors must name the “employee who claimed the bill. They should also explain under what line item the CPA paid back the said amount? \u00a0No donor listed prohibited items in the main contract as we commented above they train the beneficiaries and explain what to do and what should not.<\/p>\n

4.\u00a0Two different projects on \u201cPublic Service Media\u201d were running paralally during this period with EU and UNESCO and some activities had been carried out jointly. But the same expense had not been claimed from both donors.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

If the CPA had done it, they should have mentioned and reported to the donors, but none of the CPA\u2019s quarterly reports mentioned this fact! Can the auditor or the CPA disclose the activities carried out jointly?<\/p>\n

5.\u00a0Based on project updates reviewed, both projects had been completed and the finacials of CPA published the finance details in line with the standard disclosure requirements.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

The auditor came to this conclusion based on \u201cproject updates\u201d. The issue is those project update reports are not correct and they were misleading and blatant lies. Is camouflaging original bills a standard practice?<\/p>\n

6.\u00a0According to project updates, four panel experts had been paid Rs 123,000 (not Rs. 100,000 as published in CTW) based on the budget agreed in the proposal. Based on project updates inspected by us, we found all 4 panel experts got them selves involved in the relevant project.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

According to the finance and project reports the amount allocated was 4,500 Euros. Did the Auditors talk to the working group? Are there any minutes to establish the truth or otherwise of the allegation that they never met as a group or never even in a group email communication?<\/p>\n

7. Based on the project update reports, the 2 projects had been successfully completed.<\/strong><\/em><\/p>\n

CT comment;<\/p>\n

The auditor came to this conclusion based on \u201cproject update reports\u201d. The issue is those project update reports are not correct and they were misleading and blatant lies.<\/p>\n

Further evidence<\/strong><\/p>\n

While we wait for the CPA to publish the so called forensic report in full, Colombo Telegraph can give you few minor examples of the way CPA had cheated the donors.<\/p>\n

*. The quarterly report for the period Sep-November 2006, submitted to EU – Under the subheading “One-day training seminar for journalists” says; \u00a0\u201c4th<\/sup> September Kalmune, Zahira Collage auditorium for 31 Muslim journalists. Trainers: Uvindu Kurukulasuriya\/ Athula Vithanage from CPA\u201d .<\/em> This is a blatant lie. The fact is Uvindu Kurukulasuriya was asked to deliver a 20 minutes lecture on \u201cPublic Service Media\u201d at the venue of a Muslim media organization’s function that day. Uvindu, Athula Vithanage, Poddala Jayantha and a member a Muslim media organization call Munavar travelled form Colombo. Uvindu delivered the 20mins lecture and Munavar translated it into Tamil language! It was not a one day workshop on Public Service Broadcasting. ( Click here<\/span><\/a> and here<\/span><\/a> for the report )<\/p>\n

*. The first quarterly report \u2013 March-May 2006 says that Sunanda Deshapriya<\/span><\/a> was appointed as the Project Coordinator. This was also a lie. Sunanda was the Head of the Media Unit. He was a full time paid employee. His salary was paid from co-funding. (Click here<\/span><\/a> to learn about co-funding.) According to the project proposal and the CPA financial reports, Sunanda’s fee was Euro 5,400. Not a single cent was given to Sunanda, but CPA said to the EU that the sum was paid. On or around March 20th 2007 Sunanda’s money was withdrawn from the EU\/CPA project account. ( Click here<\/span><\/a>, here<\/span><\/a> and here<\/span><\/a> to read Euro 99,497.16 budget )<\/p>\n

*. Another Gall face Hotell bill \u2013 the original bill (number 0996), signed by Sunanda Deshapriya says it was a \u201chalf day seminar\u201d. The camouflaged bill for the same date and for the same amount says; \u201c BQT- Full day seminar\u2019!! ( Click here<\/span><\/a> for the original bill and click here<\/span><\/a> for the camouflaged bill)<\/p>\n

Colombo telegraph is in a position to provide more hard evidence to prove how the CPA has been cheating donors in this particular project as well as other projects implemented by the CPA. We urge the CPA to publish the full report of this investigation respecting \u201ctransparency and good governance\u201d and answer our simple questions we posed to the CPA last June.<\/p>\n

Unanswered questions<\/strong><\/p>\n

Colombo Telegraph first asked the CPA to respond to certain questions based on our investigations on 8th of June, 2014. The CPA, after exchanging a few emails finally said: \u201cWe consider further communication with you futile and reiterate our position that these allegations are clearly mala fide\u2019.\u201d<\/p>\n

We responded as follows:<\/p>\n

\u201cIt is of course your prerogative to communicate or refuse to do so, but there are troubling questions that remain.<\/p>\n

\u201cCan you tell us which of our allegations are mala fide?<\/p>\n

\u201cCan you tell us whether the CPA and the International Federation of Journalists together have submitted proposals to UNESCO and EU to do a \u201cPublic Service Broadcasting\u201d campaign\/training or not?<\/p>\n

\u201cIf \u201cyes\u201d can you tell us what workshops were, for whom and where they were held?<\/p>\n

How many workshops were held using UNESCO funding and how many workshops under EU funding?<\/p>\n

\u201cSince both EU and UNESCO funded workshops and certain activities, can tell us how much monies were given by both funders?<\/p>\n

\u201cContrary to your claim that the \u201cCPA paid the Galle Face Hotel liquor bill\u201d, Sasha Ekanayake (the Unit coordinator at that time) said CPA submitted a bill to EU as drinks and food \u201cSince (we) can\u2019t charge liquor, the CPA submitted a different bill to CPA\u201d. This means the CPA got a different bill from Galle Face Hotel instead of submitting the original bill (a copy of which I sent to you). Would you agree?<\/p>\n

\u201cAs we said before it\u2019s not our duty to provide you documents. As you have implied in your last email, you have access to organization\u2019s document so please check them.<\/p>\n

\u201cBut don\u2019t assume that we don\u2019t have documents, we have all narrative reports which CPA submitted to the donors or a file of original bills, which the CPA did not submit to the donors.<\/p>\n

\u201cJust so you know, all documents are authentic and we can prove this if necessary.\u201d<\/p>\n

These are questions and comments that are based on damning documentary evidence in the possession of the Colombo Telegraph. The Colombo Telegraph finds it appalling that a strong advocate of checks and balances, accountability and transparency such as the CPA remains silent on the allegations.<\/p>\n

Apart from above Colombo Telegraph can today reveal that Dr Saravanamuttu who was the paid supervisor, (according to the project documents his fee was 6,000 Euros for 20days) he was told by a whistleblower what was happening with regard to this project at that time it was happening. He asked the whistleblower to provide \u201chard evidence\u201d. The whistleblower met him 6 years ago and provided him hard evidence. Although he agreed to take an action, but up to now he has failed to do so.<\/p>\n

Related posts;<\/strong><\/p>\n

Expos\u00e9: Centre For Policy Alternatives Defrauded And Hoodwinked Donors<\/a><\/strong><\/span><\/p>\n

CPA\u2019s Powerful ED Dr. Sara Is Travelling, CPA Says It Needs Two Weeks To Respond<\/a><\/strong><\/span><\/p>\n

Nirmal Condemns Hypocrisy Of \u201cNGO Tribe\u201d<\/a><\/strong><\/span><\/p>\n

CPA\u2019s \u2018Two Weeks\u2019 Is Made Of 16 Days (And Counting): Troubled NGO Maintains Silence On Damning Charges<\/a><\/strong><\/span><\/p>\n

CPA\u2019s \u2018Two Weeks\u2019 Is Made Of 23 Days (And Counting): Troubled NGO Says \u2018Verification Of Documents Underway\u2019<\/a><\/strong><\/span><\/p>\n

CPA Remains Silent: Genuine Intellectuals Should Stay Away From These Corrupted NGOs: Dr Amarakeerthi<\/a><\/strong><\/span><\/p>\n

Exposed: Rights Advocacy A Gateway To Lavish Lifestyles<\/a><\/strong><\/span><\/p>\n

Response To Article In Colombo Telegraph<\/a><\/strong><\/span><\/p>\n

CPA Hattotuwa Must Answer Instead Of Dodging And Misleading<\/a><\/strong><\/span><\/p>\n

Sunanda Saga, States Of Denial And NGO Accountability<\/a><\/strong><\/span><\/p>\n

How Sunanda Robbed Money And Rs 30.9 million Unaudited FMM<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

[…]<\/p>\n","protected":false},"author":22,"featured_media":138078,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,1,6969,2375],"tags":[],"class_list":["post-138059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-news","category-popular-stories","category-stories"],"yoast_head":"\nPaikiasothy Saravanamuttu & CPA Slip White-Collar Crime Under 'Executive-Summary' Carpet - Colombo Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.colombotelegraph.com\/index.php\/paikiasothy-saravanamuttu-cpa-slip-white-collar-crime-under-executive-summary-carpet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paikiasothy Saravanamuttu & CPA Slip White-Collar Crime Under 'Executive-Summary' Carpet - 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