16 October 2018 12:01 am Views - 1120
The Central Bank yesterday said the procurement process for several forensic audits is underway on the Employees’ Provident Fund’s (EPF) investment in stocks and treasury bonds and operations of selected entities regulated and supervised by the bank.
“The forensic audits are to be conducted by entities with a global practice,” the Central Bank said.
The monetary authority said this yesterday giving a brief progress report on the implementation of the ‘Recommendations of the Presidential Commission of Inquiry to Investigate, Inquire and Report on the Issuance of Treasury Bonds (COI)’ during the period from February 1, 2018 to March 31, 2016.
“The Central Bank wishes to inform the public that several measures have been initiated and some have already been implemented, to strengthen the transparency and accountability in several areas of operations of the Central Bank in line with the recommendations of the COI,” a Central Bank statement said.
In relation to the legal framework within which the Central Bank operates, the bank said measures are underway to strengthen several laws applicable to the Central Bank.
“Amendments are being formulated with respect to the Monetary Law Act and Registered Stocks and Securities Ordinance.
Operations relating to issuance of government securities were strengthened by introducing a new auction system for treasury bonds. A similar system is being formulated for treasury bills as well.
Pre-bid meetings are held regularly, the auction calendar is announced in advance and a policy of accepting no more than the total offered amount has been adopted.
Internal controls in relation to the issuance process have been strengthened and the operational manual has been updated,” the statement said.
Meanwhile, the fund management function of the EPF has also been strengthened by a new robust Investment Policy Statement, an Investment and Trading Guideline and an updated operational manual to mitigate risks and improve transparency and accountability.
“The legal function is being strengthened with measures to increase resources and the internal audit function has improved its coverage and depth in terms of related risk exposures. A Whistleblowing Policy and a Code of Conduct for all employees have been introduced,” the statement said.
The Central Bank said several internal disciplinary proceedings are also underway.
“Civil recovery action has been filed to recover unlawful gains made by a primary dealer at the expense of funds of the Central Bank and the EPF. On a complaint made by the Central Bank, action has also been initiated by the law enforcement authorities,” the statement added.