CBSL nearly picked garbage clearance firm for media work

A leaked report of the Central Bank’s internal audit department on foreign travel and other expenses by Arjuna Mahendran, the former controversial Governor, reveals details of how a janitorial and garbage clearance firm was nearly picked to outsource media activities.
This startling revelation is contained in the review report which says in its own English: “Proposals to handle the PR (Public Relations) and communication for CBSL (Central Bank of Sri Lanka) obtained from two experienced media personnel were submitted to the Monetary Board by the former Governor without any amendments.

“The objectives highlighted in the proposal submitted by Mahesh Senanayake have been incorporated to the ‘invitation for expression of interest to handle public relations and social media communication services of the CBSL.“Further, one replied to the said invitation from Facility and Engineering Management Services (Pvt.) Ltd (FEMS) providing a brief note on how the company intend to address each of the tasks mentioned in the invitation, included parts of the text, which included in the proposal submitted to the Monetary Board.

“FEMS has submitted the qualifications and experience of the proposed persons by them for the said project and one such proposed persons was named as the head of the team, i.e. Mr R.S.M. Senanayake.“The Director, Human Resources addressed to the Chairman of the Technical Evaluation Committee (TEC) forwarding the EOIs (Expression of Interest) mentioned the name Abans Environmental Services (Pvt) Ltd.
Tender Board has approved to award the tender to FEMS, which is a related company of Abans and it has been mentioned the same in the profile submitted by FEMS on 23rd March, 2016.

“According to the profile specified in the website of Abans shows that they are specialised only to facilities management services such as cleaning and janitorial services, landscaping and gardening services, hygiene management services, rental of mobile toilets, etc. Since these activities are not related to the said purpose of obtaining services of journalists to handle public relations and social media communication activities of CBSL, it will expose the Bank to the reputation risk.”

The report also says there was conflict of interest over the two persons who have been named as journalists. One was R.S.M. Senanayake and the other is Ms A.D. Soysa. One was Head of Marketing of The Finance PLC while the latter is Assistant Manager in Fund Mobilisation, Softlogic Finance PLC. Both these companies are under the supervision of the Central Bank and allowing them to work would have been a conflict of interest, the report notes.

The Tender Board, according to the report, has asked Director, Human Resources to explore “the Governor’s preference.” He had asked that a quotation be called from FEMS. Though a quotation was received and an agreement was formulated, it was not signed. It came as the Legal Department said the arrangement may reveal confidential information. They pointed out that Monetary Law Act required the maintenance of secrecy.

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