By Amrit Muttukumaru
It is a reflection of the rot in governance in this country that the NDB Bank PLC Director Board is still in office despite its shocking NEGLIGENCE to prevent the MASSIVE internal FRAUD estimated at a minimum of Rs. 13.2 Billion. Their removal is necessary for their shocking negligence and the potential to TAMPER with evidence to save their skins.
Since the INTEGRITY of most regulatory agencies have been compromised in some shape or form over the years – SEC, CBSL, CA Sri Lanka and BASL, it is recommended that the proposed 3 member ‘Interim Council’ to replace the NDB Director Board although not ideal must be forthwith appointed by President Anura Kumara Dissanayake who is also Minister of Finance. It must subsequently receive CONFIRMATION from the Governing Council of the OPA within one week.
The government through the EPF/ETF/SLIC/BOC is the major shareholder of the publicly owned NDB Bank PLC with a 32 % shareholding. The Negligence of CBSL’s Bank Supervision Department looms large. Governor Dr. Nandalal Weerasinghe was a Deputy Governor under Arjuna Mahendran at the time of the scandalous CBSL Bond Scam.
The scandal at publicly owned NDB Bank PLC has not publicly evinced any concern from SEC Chairman, Dr. Hareendra Dissabandara.
All those having direct/indirect OVERSIGHT on this scandal – NDB Director Board, CBSL Governor – Dr. Nandalal Weerasinghe and SEC Chairman – Dr. Hareendra Dissabandara are all appointees of the Ministry of Finance of which AKD is Minister. The mere SUSPENSION of some employees while the Director Board is in place is clearly untenable. In the context of the fraud being estimated at a minimum of Rs. 13.2 Billion, it is ABSURD for the country’s Central Bank (CBSL) to repeat parrot like “The CBSL has also been informed that no customer accounts or deposits have been affected by this fraud.” It is equally nonsensical for the country’s only stand-alone business newspaper ‘Daily FT’ to REPEAT this without comment.
NDB Board Directors
NDB board directors include Sujeewa Mudalige – former Managing Partner of PwC / Past President of CA Sri Lanka, Hasitha Premaratne – Managing Director of Brandix Group, Shanil Fernando – founding member of Virtusa Corporation and Co-Founder of Sysco Labs, Bernard Sinniah – former Managing Director of Citibank and Kasturi Chellaraja – former Group CEO of Hemas Holdings PLC. How Directors such as the above could have MISSED this outrageous fraud is a mystery. It will be equally outrageous to even consider COLLUSION and blatant negligence on their part. It is useful to keep in mind that the massive internal fraud is estimated at a minimum of Rs. 13.2 Billion.
NDB External Auditors & AKD
The external auditors of NDB Bank PLC is Ernst & Young of which the Managing Partner is Duminda Hulangamuwa – Senior Economic Adviser to AKD. On this basis alone is not Hulangamuwa’s position as adviser to AKD fraught with ‘conflict of interest’? ‘Conflict of Interest’ seems par for the course for the President AKD led government as it has been for several other administrations. Apart from EY being the external auditors of NDB, does not anyone in this country realize that Hulangamuwa has the potential to pass on sensitive information to EY clients/potential clients? Does not the fact that COMPETING audit firms do not have a problem with this expose the PATHETIC audit profession in Sri Lanka? Are not chartered accountants/auditors the first and last line of defense against any form of financial corruption in the public/private sectors?
Conclusion
One area in which successive governments and oppositions in Sri Lanka have CONSENSUS is in giving a FREE PASS to the private sector which for the most part is the MOTHER of political corruption. The country looks forward to witness whether the HIGH PROFILE private sector NDB board directors concerned and external auditors EY will be held ACCOUNTABLE for their shocking NEGLIGENCE by parliamentary oversight committees – Committee on Public Enterprises (COPE) and Committee on Public Finance (COPF) of which leading opposition member Dr. Harsha de Silva is Chairman.
(colombotelegraph.com)