PARLIAMENT

The Hon. Speaker of Parliament Karu Jayasuriya has decided to table the Forensic Audit report on the issuance of Treasury Bonds by the Central Bank of Sri Lanka to the members of parliament yesterday (21) at parliament.

The speaker stated in parliament that it is his belief that the Audit Report will not stand as a hindrance to the ongoing judicial proceedings regarding the CBSL bond issue.

Presidential Commission of Inquiry to investigate and inquire into the Bonds Scam has instructed to conduct a Forensic Audit report on issuance of Treasury Bonds by the Central Bank.

The forensic audit report was received by the Parliament in November 2019 and the Speaker had taken measures to abstain from releasing the aforesaid to Members of Parliament upon the consultation of the Attorney General.

The Hon. Members of Parliament appealed to the Speaker in request of a parliamentary debate on this report to which the speaker stated a date will be given after discussing regarding the matter at the next party leaders meeting in response.

Following is the full text of the speech made by the Hon. Speaker.

In consideration of The Forensic Audit Reports arising from the Presidential Commission of Inquiry to investigate and inquire into the Issuance of Treasury Bonds by the Central Bank of Sri Lanka undertaken in 2015, received by the Committee on Public Enterprises and constantly requested to  be tabled in parliament by many MPs for the knowledge of all Members of Parliament on the 3rd of January 2020 in Parliament and outside the premises as well as during meetings held with the Party Leaders and Political Party Representatives  with my presence on the 13th of January 2020, I have hereby decided to announce to parliament my decision with regards to the aforesaid.

The Committee on Public Enterprises (COPE), in investigating the issue in question regarding the Issuance of Treasury Bonds by the Central Bank of Sri Lanka in 2015, made recommendations on the importance of undertaking an in-depth study of the CBSL Bonds issue in highlighting the necessity to find out the actual and total loss it has caused the government.

Subsequently, on the recommendation of the Presidential Commission of Inquiry to investigate and inquire, which conducted investigations into the Treasury Bonds issue, the Central Bank of Sri Lanka conducted a "forensic audit" on the matter of concern.
Whilst the Committee on Public Enterprises (COPE) was taking account on the Annual Report and audit reports on the Central Bank of Sri Lanka submitted by the Auditor General, it was also observed that Senior Officials of the Central Bank of Sri Lanka had briefed the Committee regarding the process of conducting  this forensic audit, its related activities, its processes and valuation.

As the Central Bank of Sri Lanka (CBSL) had received the final report on the forensic audit carried out by an international party with special expertise and qualifications in carrying out such audit  and given the written request made by the Chairman of the Committee on Public Enterprises soliciting the submission of the report to the committee, the Central Bank of Sri Lanka presented the report to the Chairman of the Committee on Public Enterprises  to provide only the Members of the Committee so as to avoid any prejudicial action in respect of the Bond issue and the impending judicial proceedings as per the advice of the Attorney General.

Thereafter, even though the Committee on Public Enterprises (COPE) was to convene a meeting to discuss the future course of action in this report, with the of the prorogation of Third Session of the Eighth Parliament on 02.12.2017, the Committee on Public Enterprises (COPE) under the Standing Orders of Parliament cease to function during the recess or the prorogation of Parliament.

As the Committee on Public Enterprises have to be re-constituted at the commencement of Fourth Session of the Eighth Parliament and as it is likely to take a considerable time for the Committee to proceed forth with an action with regards to the report, I hereby considered the powers and responsibilities entrusted to me as the Trustee of such Committees, during which the Committee has ceased to function.

According to the Constitutional provisions which specifically states that Parliament has full power over the control of public finances, and the powers vested with the Committee on Public Enterprises as well as the powers delegated to me in terms of Standing Order 136 of the Parliament whilst emphasizing the right to make decisions independently without the interference of any outsourcing party, I also took into consideration the  historical decision of my predecessor, Hon. Anura Bandaranaike on this regard.

Furthermore, as the preparation of this Forensic Audit Report has costed immensely when seeking the assistance of international and local expertise, it is my belief that it is bets to present this report to all Members of Parliament rather than to the Members of the Committee on Public Enterprises.

 I also wish to highlight the fundamental right of access to information in terms of Article 14A of the Constitution.

Accordingly, I decide that it is appropriate to table today (21) the "Forensic Audit Report" on the Treasury Bonds issued by the Central Bank of Sri Lanka.

Further, I am confident that this decision will not in any way impair or affect the judicial proceedings in respect of the Treasury Bonds Issue that have already commenced and the legal circumstances that are to commence in the future.