Presidential Commission of Inquiry: Auditor General grilled over ‘error’

Presidential Commission of Inquiry: Auditor General grilled over ‘error’

By Keshala Dias

16 Jun, 2017 | 8:30 pm

The Auditor General was grilled over an error in calculating percentages in his special audit report at the Presidential Commission of Inquiry today.

The error was highlighted in a graph of the special audit report in relation to the March 29, 2015 bond auction.

Counsel Chanaka de Silva, appearing for former Governor Mahendran, highlighted that Rs. 05 billion has been used instead of Rs. 10 billion in calculating the loss for one of the bonds issued on that day.

The Auditor General said the auction was a mere sample used and it did not have an impact on the findings of the report.He highlighted that when probing the bond issuance, he considered the public outcry on the auctions in question.

He said that it was observed that during the nine year period from 2008 to 2015, 57% of bond issuance under the Direct Placement method was done at or below the existing market rates.

The counsel pointed out that from 2008 to 2015, the total face value of bonds issued through auctions were Rs. 449 billion.

He said that this represented less then 10% of the 4,700 billion raised through Private Placements during the nine year period.