Fails to CoPE again
Responding to the Committee on Public Enterprises (CoPE) on the reported wire-fraud this week, the Board admitted that a recent Cyber Security Vulnerability Assessment by the PricewaterhouseCooper (PwC) found serious lapses in the computer security system in place.
“They have found that SLC has a superhero, that is the IT Manager, who can superimpose anyone, me, the President, CEO or anyone without their knowledge,” SLC Treasurer Lasantha Liyanage admitted before CoPE on Thursday. “So they have raised serious issues in the system. We are now in the process of securing the IT system.”
Piyal Dissanayake, SLC Head of Finance (HoF), was sent on compulsory leave in September 2018 pending inquiry into allegations that he instructed Sony Pictures Networks India (Pvt) Ltd to transfer US$ 187,084 due for South Africa’s tour of Sri Lanka to an account in Banamex Bank, Mexico.
Mr. Dissanayake consistently maintained that his email was hacked. The SLC’s IT division dismissed his claim saying it had strong controls (Office 365 login). A CID investigation is ongoing.
A forensic audit by Ernst and Young had also earlier found that an alleged wire transfer fraud at Sri Lanka Cricket (SLC) was the result of “business email compromise” (BEC) by hackers who attempted to siphon funds into an offshore account by infiltrating the official email accounts of SLC employees. Their report was based on the findings of the Computer Emergency Readiness Team (CERT) who concluded that SLC’s IT system was so badly protected that it was left wide open to hacking.
In March 2019 — six months after being assigned the task of conducting a fact-based investigation on incoming proceeds related to media broadcasting rights — EY submitted its findings to SLC. It determined that emails, particularly containing instructions to transmit money into an offshore account that did not belong to SLC, originated from a fake Internet Protocol (IP) address. This indicated that SLC’s email accounts were hacked. CoPE directed the Secretary to the Ministry of Sports to submit a full report on the status of the case.
Led by parliamentarian Charitha Herath, CoPE cross-examined the officials for nearly one-and-a-half hours on various matters highlighted in the special audit before adjourning the meeting as the incompetence and ineptitude of cricket officials was laid bare. They contradicted each other on questions regarding financial irregularities and procedural flaws in the governance of the sports body.
Meanwhile, CoPE asked SLC to come to a negotiated settlement with sacked coach Chandika Hathurusingha after it was revealed it has spent over Rs 20 million as legal fees to fight him in court. Hathurusingha has filed action in the Court of Arbitration for Sports demanding a sum of US$ 5 million as compensation for unlawful sacking.
Hathurusingha entered into an iron-clad three-year contract with SLC in 2018. The Board admitted that the agreement was not only written in favour of Hathurusingha, it offered a massive remuneration package to lure him from his role with the Bangladesh team. This contract places him in a strong psition to win the case although SLC maintained it was confident of victory given the seriousness of charges it levelled against him.
“We would ask to stop this legal battle and negotiate,” Mr Herath told SLC officials. “This will drag for a very long time. We advise to take the most intelligent decision.”
The CoPE chairman repeatedly reminded cricket officials to act with responsibility and transparency as they represented a national brand.
“This is a Sri Lankan brand and not a private property of anyone,” he insisted.