{"id":174216,"date":"2017-02-22T06:12:47","date_gmt":"2017-02-22T00:42:47","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=174216"},"modified":"2017-02-28T23:52:56","modified_gmt":"2017-02-28T18:22:56","slug":"auditor-general-silent-on-corrupt-ca-sri-lanka","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/auditor-general-silent-on-corrupt-ca-sri-lanka\/","title":{"rendered":"Auditor General Silent On Corrupt CA Sri Lanka\u00a0"},"content":{"rendered":"

By\u00a0Amrit Muttukumaru<\/a> –<\/strong><\/p>\n

\"\"<\/a>

Amrit Muttukumaru<\/p><\/div>\n

By what perverse logic does Chandra Jayaratne<\/a> described as a \u201cgood governance activist\u201d expect a corrupt CA Sri Lanka to \u201cSafeguard the Integrity\u201d of the Auditor General \u2013 H.M. Gamini Wijesinghe under attack by powerful vested interests threatened by his demand for accountability for alleged egregious wrongdoing? He does so in his independence day letter to the President and Council of the Institute of Chartered Accountants of Sri Lanka captioned \u201cAn Appeal to Safeguard the Independence, Integrity and Professional Position of the Auditor General<\/em><\/a>\u201d also copied to the President and Prime Minister of Sri Lanka.<\/p>\n

In his letter he inter alia informs CA Sri Lanka \u201cI am sure you realize that the position of the Auditor General, is the most prestigious and responsible office a member of the Institute can hold<\/em>\u201d<\/p>\n

Chandra was made fully aware by this writer through \u2018open\u2019 letters in the media and e-mails of the \u2018open & shut\u2019 case of professional misconduct by the \u2018Partners\u2019 concerned of the Sri Lanka affiliates of PwC and Ernst & Young in the fraudulent privatization of the Sri Lanka Insurance Corporation confirmed by (i) Supreme Court (ii) Parliament\u2019s COPE (iii) Attorney-General and the failure of CA Sri Lanka and Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) to hold those concerned accountable.<\/p>\n

This is apart from CA Sri Lanka ‘Ethics’ Committee itself more than 10 years ago further to my complaint endorsing the findings of its Investigating ‘Panel’ of a prima-facie case of ‘Professional Misconduct’ by\u00a0PwC and EY and\u00a0ALL their Partners at the relevant period in the scandalous SLIC privatization.<\/p>\n

Not only did he not respond but more reprehensibly he has never referred to this \u2018open & shut\u2019 case in his regular missives in the media on good governance with emphasis on accountability.<\/p>\n

Surely, is there any need to inform Chandra Jayaratne and Auditor General \u2013 Gamini Wijesinghe both senior chartered accountants held out to be good governance activists of this egregious professional misconduct?<\/p>\n

Gamini Wijesinghe of whom much is expected and described by an influential section of the media as \u201cfearless<\/em>\u201d and a \u201cknight in shining armour<\/em>\u201d will definitely enhance his credibility and moral authority by demanding accountability for this \u2018open & shut\u2019 case. Previously he was Director General of SLAASMB.<\/p>\n

While PwC (Indonesia & Sri Lanka)\u00a0functioned as Consultant, ‘Investment Banking and Legal Advisory Services’ to the Government of Sri Lanka, EY (Sri Lanka)\u00a0were the ‘Auditors’ to SLIC.<\/p>\n

Peculiar Letter<\/strong><\/p>\n

Earlier in another letter to President, CA Sri Lanka and Chairman, SLAASMB in the \u2018Daily Mirror\u2019 of 25 October 2016, Chandra urged them to \u201cintroduce necessary regulatory reforms and oversight mechanisms, to assure upholding of professional standards, best practices, ethics<\/em>\u201d.<\/p>\n

This is strange since all chartered accountants are aware that CA Sri Lanka established by Parliament by Act No.23 of 1959 has the necessary regulations \u201cto assure upholding of professional standards<\/em>\u201d and what is glaringly lacking is the WILL to uphold the same.<\/p>\n

CA Sri Lanka & SLAASMB<\/strong><\/p>\n

The ‘Supreme Court’ (SC FR Application No: 158\/2007) in its\u00a0landmark Judgment delivered on 4 June 2009, held the SLIC privatisation to be “illegal and invalid ab initio<\/em><\/strong>” and had ordered the removal “forthwith<\/em>” of the auditors, EY. The judgment is also signed by incumbent Chief Justice Hon. K. Sripavan. (emphasis mine)<\/p>\n

Not holding those concerned accountable violates with impunity Section\u00a017 (2) (b)<\/strong> of CA Sri Lanka Act of Incorporation which clearly stipulates that\u00a0when an ‘Investigating Committee’ appointed by\u00a0the ‘Council’\u00a0“reports to the Council that a prima facie case of professional misconduct has been made out against a member, the Council shall<\/strong> appoint a disciplinary committee for the purpose of inquiring into the conduct of such member<\/em>” (emphasis mine).<\/p>\n

As for the SLAASMB, at the conclusion of its purported \u2018investigation\u2019 of this same fraudulent privatization, I received the following farcical response as per its e-mail dated 28 November 2005:
\n“Whilst we appreciate the contribution made by the complainants, we are not in a position to keep the complainant informed of the progress of the investigation and the outcome of the investigation, as it would undermine our policy on releasing information to the public.\u201d<\/p>\n

This was signed by Ms. Gayani L. Perera, then Technical Manager and presently Deputy Director General.<\/p>\n

Mr. W.A Wijewardena<\/a> \u2013 Former Deputy Governor, Central Bank of Sri Lanka was Chairman<\/a>, SLAASMB on this date.<\/p>\n

\u2018Partnership\u2019 Law<\/strong><\/p>\n

Under the \u2018Partnership\u2019 law in Sri Lanka, ALL<\/strong> \u2018Partners\u2019 are \u2018Jointly and severally\u2019 liable for any wrongdoing. All Partners are aware of every audit and assignment. It is unethical for any \u2018Partner\u2019 to plead ignorance.<\/p>\n

It is the responsibility of CA Sri Lanka to forthwith disclose the identity<\/strong> of those who were \u2018Partners\u2019 of PwC and EY at least 3 years prior to 11 April 2003<\/strong> which is the date on which the fraudulent SLIC privatization took place.<\/p>\n

It is outrageous that some \u2018Partners\u2019 falling under this period have been appointed \u2018Directors\u2019 of \u2018quoted\u2019 companies and Banks. Some have even been appointed by CA Sri Lanka to its ‘Quality Assurance Board’ and inducted to its \u2018Hall of Fame\u2019! Such is the impunity.<\/p>\n

Conclusion<\/strong><\/p>\n

In another recent article Chandra Jayaratne inter alia states \u201cProfessionals are Accountable for the Destiny of Sri Lanka<\/em>\u201d. While agreeing with him, I ask him and other proponents of good governance such as \u2018Friday Forum\u2019 of which he is convener and Transparency International Sri Lanka of which he was a Director whether they are serious in combating corruption and abuse of power when the role of auditors is ignored? After all, are not chartered accountants and auditors the first line of defence against corruption in all entities dealing with financial resources?
\nCould the alleged Treasury Bond scams have taken place without the complicity of professionals in the hierarchy of the Central Bank and Bank of Ceylon \u2013 lawyers, accountants and others?
\nAlthough activists talk the hind legs off a donkey on the evils of corruption and some get paid handsomely for doing so, they fail to bite the bullet by \u2018naming & shaming\u2019 errant professionals and bigwigs in the corporate sector complicit in the corruption of politicians.<\/p>\n

My experience after several years of \u2018struggle<\/strong>\u2019 as the complainant to CA Sri Lanka is that there is a conspiracy involving influential sections of the political, corporate, professional, media and NGO establishments for a \u2018cover-up\u2019 due to \u2018wheels within wheels\u2019 within our largely \u2018wheeler dealer\u2019 economy. The perilous state of the economy and social fabric for which successive governments are responsible bear testimony to this assertion.<\/p>\n","protected":false},"excerpt":{"rendered":"

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