Sowore insists on Judge’s withdrawal, opts to appear for himself in cyberbullying trial

By Taiye Agbaje

The trial of publisher of Sahara Reporters, Omoyele Sowore for alleged cyberbullying before Federal High Court in Abuja stalled on Friday.

This was after Sowore indicated his readiness to represent himself in court pending reconstitution of a new legal team in the ongoing

Sowore told Justice Mohammed Umar that he will represent himself after he was called to open his defence.

Justice Umar had, on Thursday, fixed today for the defendant to open his defence.

The judge, who declined to grant an oral application by Sowore’s lawyer, Marshall Abubakar, for a long adjournment, ordered that the trial shall be conducted day-to-day.

Sowore is being prosecuted by the Department of State Services (DSS) for allegedly making false claims against the person of President Bola Tinubu by referring to him as “a criminal” in a post he made on his “X” and Facebook accounts.

Upon resumed hearing on Friday, only DSS lawyer, Akinlolu Kehinde, SAN, was in court when the case was called.

Abubakar, Sowore’s counsel, was conspicuously absent.

When the defendant, who was already in the dock, was asked by the judge the whereabouts of his lawyer, he said upon the ruling of the judge the previous day that the trial would proceed on a day-to-day basis, his lawyers were afraid to appear before Justice Umar.

“Our lawyers indicated to me they are afraid before you and will not appear any longer because of the humiliation they suffered before this court.

“And pending the time I am able to reconstitute a new legal team, I shall be representing myself before your lordship,” he said.

Sowore told the court that it was his constitutional right to choose lawyers to represent him in any form of trial in Nigeria.

The defendant then informed the court that he had two applications which he had filed and one of it had already been served on the prosecution.

“A motion on notice filed yesterday, June 4, 2026, and served on the prosecutor earlier this morning.

“The application is motion on notice for a recusal,” he said.

Sowore, therefore, sought the permission to move the application for recusal and the DSS lawyer did not object.

Moving his motion, the defendant prayed the court for an order directing the judge to recuse himself or withdraw from the case in view of bias and humiliation.

He cited Section 36(1)(5) (6) of the 1999 Constitution to back his submission and urged the court to grant his relief.

Kehinde, who urged the court to also grant him the leave to respond on points of law, argued that Sowore’s application was fundamentally defective.

“This application is fundamentally incompetent as there is no name of the counsel that prepared the motion and attached to the motion paper,” he said.

But the judge said a lawyer signed the copy of the application in the court file.

“From my record here, the person that signed it is Marshall Abubakar,” Justice Umar said.

“Mine was not signed my lord,” Kehinde responded.

“We presume it is Marshall Abubakar that signed it.

“I will not condone any technical move from you,” the judge told Kehinde.

Replying to Sowore’s motion, the DSS lawyer described the application as “an abuse of court process meant to annoy and irritate this court.”

According to him, this court is bound by the records of this honourable court where a letter written by the chief judge dated May 22, directed that this matter should proceed.

He said the letter was copied to all the parties.

“Moreover, there is a subsisting order of this court that defence must commence today and the option is for the defence to be foreclosed if the defendant is not ready,” he said.

The senior lawyer prayed the court to refuse the application.

Justice Umar said to do justice to the application, he would have to go through the defendant’s process.

“I will adjourn this case to Monday for ruling,” he said.

But Sowore begged for more time to enable him get lawyers, adding that this was also “in view of the Democracy Day celebration.”

The judge reminded him that an order had already been made for a day-to-day hearing of the case.

“My lord, take judicial notice that I have attended this case from day one.

“I am just asking for indulgence for at least a week to come,” he prayed.

Justice Umar consequently adjourned the matter until June 15 for ruling and for defence.

(NAN)

Govt.-JICA target to restart construction of Terminal 2 at BIA in November

The long-delayed second passenger terminal project at Bandaranaike International Airport (BIA) moved a step closer to resumption following high-level discussions held yesterday between Ports, Civil Aviation and Energy Minister Anura Karunathilaka and a delegation from the Japan International Cooperation Agency (JICA) led by Japanese Ambassador to Sri Lanka Isomata Akio.

The meeting focused on accelerating approvals related to the project’s loan allocation and contract value, with both sides expressing their intention to restart construction work by November

this year.

Deputy Minister Janitha Ruwan Kodituwakku, Ministry Secretary W.W.S. Mangala, senior officials from the Civil Aviation Authority, and officials from the Ministry also attended the discussions.

During the meeting, Minister Karunathilaka assured the JICA delegation that discussions would be held with the Finance Ministry to secure approval for the necessary loan amount at the earliest opportunity.

It was also revealed that President Anura Kumara Dissanayake has taken a keen interest in the project due to its national importance, with further discussions expected at the highest level of Government in the coming weeks.

JICA representatives proposed a two-stage approach to move the project forward. The first phase would involve securing the required financing and finalising the loan agreements, while the second phase would focus on awarding the construction contract at the negotiated price.

The Japanese delegation also outlined an ambitious timeline, stating that the terminal could be completed within 30 months from the date construction officially resumes.

The Terminal 2 expansion project, considered one of Sri Lanka’s most significant aviation infrastructure developments, commenced in December 2020 with financial assistance from the Japanese Government through a ¥ 75 billion loan facilitated by JICA. However, construction was suspended in April 2022 following the country’s economic crisis.

Although work resumed in 2024, the project faced another setback in March 2025 when construction was halted due to inadequate loan funding. Following several rounds of negotiations between Sri Lanka and Japan, an agreement was eventually reached to provide the additional financing required to complete the project, reflecting renewed international confidence in the Government’s economic management.

The revival of the BIA Terminal 2 project is expected to significantly enhance Sri Lanka’s airport capacity, strengthen its position as a regional aviation hub, and support the country’s growing tourism and economic recovery efforts.

Govt. appoints new team to fix Rs. 340 b hole in SriLankan Airlines’ balance sheet

The Government has launched a fresh attempt to chart the future of loss-making national carrier SriLankan Airlines, which has a Rs. 340 billion-sized hole in its balance sheet, appointing a high-powered committee to conduct a strategic review and oversee a comprehensive restructuring process aimed at restoring financial sustainability while reducing the burden on public finances.

The President’s Media Division yesterday said that Cabinet of Ministers has approved the appointment of a committee chaired by Presidential Adviser on Digital Economy Dr. Hans Wijayasuriya, bringing together expertise in economic policy, corporate strategy, investment banking, aviation, law and public administration.

The move comes after several years of failed privatisation and restructuring efforts, with successive governments struggling to resolve the future of an airline that has long occupied a contentious place in Sri Lanka’s public finances and economic policy debates.

Joining the committee are Senior Presidential Economic Adviser Duminda Hulangamuwa, corporate strategy specialist and Economist Deshal De Mel, investment banker and Asia Securities Chairman Dumith Fernando, representatives of the Finance and Transport Ministries, the airline’s Chairman, legal specialists and aviation experts.

According to the President’s Office, the Government has identified the restructuring of SriLankan Airlines as an urgent priority requiring a comprehensive strategic review within the broader macroeconomic context.

Unlike previous efforts that largely focused on ownership and divestment options, the latest initiative places emphasis on establishing a financially sustainable and commercially efficient national carrier while reducing the long-term fiscal exposure of the State.

The committee will work alongside the World Bank Group’s International Finance Corporation (IFC), which has been appointed as Transaction Adviser to support the restructuring process.

Its mandate includes conducting an independent assessment of the airline’s strategic direction, recommending restructuring requirements and potential restructuring models, evaluating alternative strategic pathways and identifying the option most aligned with the Government’s objectives.

The committee will also provide oversight and guidance during implementation of the selected strategy, signalling that its role extends beyond diagnostic review to execution support.

SriLankan Airlines has remained under pressure from accumulated losses, debt obligations and repeated capital support requirements over the years, making it a recurring focus of fiscal reform discussions under Sri Lanka’s broader public sector restructuring agenda.

The inclusion of specialists in mergers and acquisitions, corporate restructuring and transaction advisory services indicates that the review is likely to examine a range of options, including strategic partnerships, operational restructuring, capital reorganisation and alternative ownership structures, although the Government has not indicated any preferred outcome.

The committee will remain in operation throughout the strategic review and restructuring process until formally dissolved by the Government.

The latest initiative comes as policymakers increasingly focus on reducing fiscal risks arising from state-owned enterprises while seeking to improve efficiency and commercial discipline across strategically important public assets.

SriLankan Airlines enters the restructuring process against the backdrop of improving operating performance but continued balance sheet stress.

During the 2025/26 financial year, passenger revenue increased to Rs. 265.9 billion from Rs. 234.5 billion, while total net traffic revenue rose to Rs. 333.5 billion from Rs. 298.9 billion. Earnings before interest and tax (EBIT) improved by 13.8% to Rs. 26.4 billion, reflecting stronger operating performance across the business.

However, the airline’s financial position continued to be constrained by legacy debt obligations and exchange rate volatility. While interest expenses declined sharply to Rs. 24.7 billion from Rs. 36.2 billion following debt restructuring measures, foreign exchange losses weighed heavily on the bottom line, resulting in the net loss before tax widening to Rs. 23.2 billion from Rs. 7.6 billion a year earlier.

The Government continued to support the carrier’s balance sheet restructuring during the year, including the restructuring of its $175 million international bond and a Rs. 25.28 billion equity injection. As a result, total liabilities declined to Rs. 544.4 billion from Rs. 585.1 billion, while negative equity improved to Rs. 339.7 billion from Rs. 403.2 billion.

The Finance Ministry has maintained that the broader State-owned enterprise reform agenda is aimed at improving governance standards, operational efficiency and commercial viability, while reducing long-term fiscal risks and strengthening the contribution of public enterprises to the economy.

He started working out at 50. At 62, he’s lean, ripped and thriving

‘You’ve lost some weight. Last time, you looked much bulkier and more built…’ a visibly concerned Patrick Kondo tells me when we meet for the second time at Nairobi’s Parklands Sports Club.

‘I lost my father three weeks ago. I haven’t been quite myself,’ I answer.

It has been exactly a month since our paths first crossed. We met during a gruelling outdoor workout session where a group of fitness enthusiasts had made it a tradition to invite strangers for a Saturday morning endurance challenge at the club.

On that day, 62-year-old Kondo was the oldest participant in the group. The youngest was 25.

At 62, the gas and oil consultant is in the shape of his life. With just eight percent body fat, visible abs form a neat cube pattern beneath his blue training bib.

Veins crisscross his lean arms and legs in tight, web-like patterns, the kind of definition that tells the story of a man whose fitness would put many people, even those half his age, to shame. Kondo looks every bit the seasoned athlete you know.

‘That’s what you get when you stay disciplined and consistent,’ he chuckles when I point out how rare it is these days for men to keep a flat stomach, let alone visible abs.

What eventually pushed him into exercise was something far less dramatic: a bruised ego.

‘I hadn’t retired yet, and there was this lady friend who was a fitness freak. Every minute she was doing something active,’ Kondo recalls, smiling.

‘She never liked my physique at all. She didn’t think I looked attractive in that physique. She’d tell me bluntly that she didn’t like how I looked, that I was too thin for a man, and that every suit I wore looked oversized, like I was a hanger walking around in it. She would bluntly tell me that. That got to me. As a man, you know how it stings when a woman says something that bruises your ego like that. That uncomfortable truth stayed with me.’ Kondo chuckles again.

For a while, Kondo brushed it off or tried to. But life kept reminding him.

‘My boss was a few years older than me, and every time we travelled overseas for work, the first thing he’d do after checking into the hotel was go for a run. Didn’t matter how packed our schedule was, he always found time. And that got me thinking. First, someone tells me my physique isn’t attractive to look at, then my boss, someone older than me, is always out running while I do nothing. That was enough push to start.’

Twelve years later, that bruised ego and a decision made during a work trip to Burundi have evolved into a way of life, measured in weights lifted, kilometres logged and half-marathon personal bests.

Exercise in retirement

Kondo, who now spends his retirement years consulting for companies, sitting on corporate boards, and overseeing family business interests in hospitality and construction, still remembers those humbling moments that pushed him to take the first step.

‘When I started, I could barely manage a kilometre on the treadmill. Now I run 21 kilometres in under two hours.’

Having taken part in nine half marathons, his personal best of one hour 44 minutes at the Nairobi City Marathon two years ago still makes him smile.

‘I’d never imagined I could do that kind of time. I wasn’t even trying to break a record. I just joined the pacemakers, felt good, and kept going.’

When he first began, he weighed 69 kilos.

‘My highest weight was about 69 kilogrammes. I wasn’t overweight. I was just unfit. I had no muscle. If I climbed a few office stairs, I would get exhausted and sometimes struggle for breath.’

He first started by taking the stairs to his office on the 11th floor every morning. Then one kilometre on the treadmill became two. Two became three. Three became four.

50km every week

By 2015, he was running about 50 kilometres a week. The mileage transformed his fitness but steadily stripped away his weight, reducing him from 69kg to 62 kilos.

There was one problem: he was getting thinner rather than stronger, and his knees were beginning to complain.

‘When you run a lot, you become very lean, with little muscle. I started looking thin, almost frail. And as you age, you need muscle, not less of it.’

And just as he was trying to figure out what to do, another woman showed up again.

His week now runs like clockwork. Monday is chest day, Tuesday legs, Wednesday rest, Thursday chest again, Friday full body, and Saturday the notorious outdoor endurance ‘Konki’ session, the same gruelling group workout where we first met.

‘After Konki, which is always an hour and a half, I always head straight to the treadmill for an hour-long run, on an incline,’ he laughs.

Sundays are sacred. He does nothing but recharge.

‘I take a sedentary life that day, rest, drink lots of water, and eat protein. The body doesn’t need much food when it’s recovering.’

Not prove anything

Now he trains alongside men and women in their 20s and 30s, lifting the same weights they do.

At an age when many of his peers are complaining about aching joints and dwindling energy, Kondo is matching men and women enough to be his children.

‘There are even a few exercises I can do better than some of them. Strength builds over time, and there are things I can do better than they can,’ he says with a grin.

Kondo is also realistic about ageing.

‘The body will slow down, I’ve made peace with that,’ but insists that consistent effort is what keeps the slowdown gradual rather than sudden. Even when pain shows up, he doesn’t stop entirely. ‘That pain is trying to ground you. If you let it, you’ll be grounded forever. You still seek treatment, but you keep moving however little.’

It’s advice he extends well beyond the gym. To his peers, who wave off exercise.

‘There are those of my peers who think I have lost it with my workout obsession at this age. Some think going to the gym at my age means I’m trying to prove something. But really, it’s like anything worthwhile in life. I always say to them, the easy path is walking into a bar, ordering a beer, then another, and drowning it with nyama choma. It is always a feel-good moment that you will end up paying for dearly. Many have.’

For Kondo, fitness has now become about much more than muscles, but rather life lessons. The greatest lesson has been discovering just how much the human mind and body are capable of.

‘What fitness taught me is that we can achieve much more than we think. Most people give up before they even try. They say, ‘I can’t do that.’ But if you put in the effort, stay consistent, and believe in yourself, you will be surprised by what is possible. I was never a runner. I had never lifted weights. I started that at 50, and now look at what I can do at 62.’

Thailand crush Cambodia, set up Aussie showdown

Thailand will take on Australia in the final of the Asean U19 Boys Championship 2026 on Saturday after they crushed Cambodia 4-0 at the Sumatera Utara Main Stadium in Medan, Indonesia, on Thursday.

After a long period of frustration, Natthakit Phosri struck the opener in the 32nd minute for Thailand before Itthimon Tippanet doubled their lead just before half-time.

Cambodia tried hard to stage a comeback in the second half but the Thais stood firm and Itthimon added the third goal in the 80th minute before an own goal from Cambodia defender Udom Sean eight minutes later completed the rout.

Australia edged hosts Indonesia 1-0, with Marcus Neill hitting the winner in the 89th minute in the other semi-final.

“We have to praise Cambodia for making it difficult for us at the start of the match. But the first goal took the pressure off the players and from then on they could play the way they wanted to,” said Thailand U19 coach Jakkrapan Punpee after the game.

“Now we have to focus on the players’ physical condition because we don’t have much time for recovery.

“The players have done well to reach the final but there are still some mistakes which need to be addressed. But I have to commend the fighting spirit of the team. We didn’t have much time to prepare for the tournament but the players have given their best,” added the coach.

Saturday’s final will kick off at 8.15pm and will be broadcast live on the BG Sports YouTube channel.

Pornpawee keeps title dream alive

Pornpawee Chochuwong advanced to the women’s singles semi-finals of the US$500,000 (approximately 16,350,000 baht) BWF Australian Open in Sydney on Friday, while mixed doubles pair Ruttanapak Oupthong and Jhenicha Sudjaipraparat also made it through to the last four.

Second seed Pornpawee, who is chasing her first title since the 2025 Thailand Masters, defeated Huang Yu-hsun of Taiwan 21-15, 21-15 to set up a semi-final clash with fourth seed Nozomi Okuhara of Japan at the Super 500 tournament.

Top seed Akane Yamaguchi of Japan and third seed Pusarla V Sindhu of India will square off in the other semi-final match on Saturday.

Mixed doubles third seeds Ruttanapak and Jhenicha advanced to the semi-finals after defeating Chan Yin Chak and Ng Tsz Yau of Hong Kong 21-15, 21-19. They will play second seeds Guo Xinwa and Chen Fanghui of China next.

In the men’s singles event, third seed Alwi Farhan and Jason Gunawan, both from Indonesia, progressed.

A day after knocking out top seed Chou Tien-chen of Taiwan, unseeded Dong Tianyao of China continued his impressive run with a 22-20, 21-19 win over Ng Ka Long Angus of Hong Kong. He will next play Indonesian Moh Zaki Ubaidillah, who ousted Justin Hoh of Malaysia 21-7, 21-13.

South Korea election chief offers to resign over ballot shortages.

South Korea’s National Election Commission (NEC) chairperson, Roh Tae-ak on Friday offered to resign following a widespread shortage of ballot papers that disrupted voting in Seoul during this week’s local elections.

Roh made the announcement during a press briefing at NEC headquarters in Gwacheon, south of Seoul, expressing deep responsibility for the incident and apologising for eroding public trust in election management.

“The situation undermined voters’ confidence and participation in local elections, and I feel devastated as chairman,” Roh said.

NEC Secretary-General Heo Cheol-hoon also offered to resign, Roh added.

The presidential office said it “takes seriously” the resignations and called for a comprehensive review of election management procedures to restore public trust.

Officials stressed the need for the NEC to provide a clear explanation and implement strict follow-up measures.

The NEC plans to establish an independent committee of outside experts to investigate the cause of the shortage and propose preventive steps.

Ballot paper shortages were reported at more than a dozen polling stations in Seoul, including Songpa and Gangnam districts, causing temporary suspension of voting.

Some voters reportedly left without casting their ballots after waiting.

Protesters later gathered at a polling station in Jamsil, Songpa Ward, alleging election fraud and obstructing officials from transporting ballot boxes.

Police dispersed the crowd and transferred approximately 2,000 ballots to a counting centre.

(Yonhap/NAN)

Kano agency unveils ‘Kannywood AbbaCare Initiative’ to support ailing film practitioners

By Grace Idachaba

The Kano State Contributory Healthcare Management Agency (KSCHMA) has launched the “Kannywood AbbaCare Initiative” under Gov. Abba Yusuf’s First Healthcare Development Agenda to support Kannywood practitioners, particularly vulnerable members, in accessing healthcare services.

The Executive Secretary of KSCHMA, Dr Rahila Aliyu-Muktar, unveiled the programme during a sensitisation meeting held at the Kano State Censorship Board headquarters in Kano.

Aliyu-Muktar said the initiative was introduced improve access to quality healthcare for practitioners in the film industry.

She said the programme recognises the contributions of Kannywood practitioners to public enlightenment, cultural promotion, and social development.

According to her, the initiative provides a platform for vulnerable industry practitioners to benefit from healthcare support and other interventions offered by the agency.

“Kannywood practitioners play a vital role in shaping positive societal values.

“Through the Kannywood AbbaCare Initiative, we are extending healthcare support to members of the industry and ensuring that vulnerable practitioners receive the care and attention they deserve,” she said.

Aliyu-Muktar added that the initiative aligns with Gov. Yusuf’s vision to build an inclusive healthcare system that caters to all segments of society.

She, therefore, announced the immediate enrollment of eight seriously ill Kannywood members under the agency’s Rapid Response Team (RRT) for urgent medical assessment, treatment, and follow-up care.

“No individual should be denied healthcare because of financial constraints.

“We have therefore, approved the immediate enrollment of these vulnerable members to ensure they receive timely medical attention and necessary support,” she assured.

In his remarks, the Executive Secretary, Kano State Censorship Board, Alhaji Abba Almustapha, commended KSCHMA for prioritising the welfare of Kannywood practitioners.

Almustapha described the initiative as a reflection of the state government’s commitment to the well-being of artists and other stakeholders in the entertainment industry.

He assured the agency of the board’s support in mobilising Kannywood associations to participate in the programme.

The censorship board chief also urged practitioners to embrace the initiative and take advantage of the healthcare opportunities provided through the partnership.

(NAN)

Aguiyi-Ironsi family pays glowing tribute to late Fajuyi 60 years after

By Adeyemi Adeleye

The family of Nigeria’s first military Head of State, Maj.-Gen. Thomas Aguiyi-Ironsi has paid glowing tribute to the late Lt.-Col. Adekunle Fajuyi, saying he offered himself as a sacrificial lamb for the unity and integrity of the nation.

Fajuyi was killed on July 29, 1966, alongside Aguiyi-Ironsi, during a military counter-coup in Ibadan.

Aguiyi-Ironsi family, in a remembrance letter to Fajuyi family seen on Friday described Fajuyi’s death as a supreme and heroic price for national unity.

The letter was signed by Amb. (Chief) Thomas Aguiyi-Ironsi, a former Minister of Defence and son of the late Head of State.

The family said July 29,2026 would be a solemn occasion to honour a soldier whose sacrifice continues to inspire generations of Nigerians.

“Lt.-Col. Francis Adekunle Fajuyi was a war hero who offered himself as a sacrificial lamb for the unity and integrity of the nation.

“His courage, loyalty and selflessness remain enduring virtues for all Nigerians.

“His sacrifice stands today as one of the most defining moments in our national history,” the family said.

The family recalled that Fajuyi was Military Governor of the Western Region when mutinous soldiers struck during the military counter-coup of July 1966.

According to them, he was abducted alongside Aguiyi-Ironsi in Ibadan.

The family said Fajuyi had an opportunity to save himself but chose instead to remain with his guest and superior officer.

“In a defining moment of conscience, he chose honour over personal safety.

“He refused to abandon his guest and superior officer in the face of grave danger.

“That decision reflected the highest ideals of loyalty, integrity and military brotherhood.” the family said.

They described Fajuyi as a national martyr whose legacy continues to promote unity, courage and selfless service.

The Aguiyi-Ironsi family also expressed sympathy with the late soldier’s family over the enduring pain of the loss.

The family prayed for continued strength, comfort and peace for the descendants of the late military governor.

“We remain deeply grateful for his life and sacrifice.

“We also appreciate Nigerians, institutions and well-meaning individuals who continue to honour his memory.

“Their support demonstrates that the sacrifice of a true patriot is never forgotten.”

The family called on government institutions and military authorities to sustain efforts to preserve Fajuyi’s memory.

They urged custodians of national history to ensure continued recognition and support for the Fajuyi family.

“He did not run. He did not hide. He chose to stand.

“In that sacrificial decision lay the essence of his greatness.

“His legacy challenges all Nigerians to uphold unity, courage, honour and selfless service,” the letter further read.

(NAN)

CoPF grills CBSL over Rs. 13.2 b NDB fraud as forensic audit covers 10 years

The Committee on Public Finance (CoPF) earlier this week subjected the Central Bank of Sri Lanka (CBSL) to intense scrutiny over the Rs. 13.2 billion fraud at National Development Bank PLC (NDB), with lawmakers questioning supervisory lapses, governance failures, and whether warning signs were overlooked despite the steady build-up of suspicious balances in the bank’s accounts.

Appearing before the Committee chaired by Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva, CBSL Governor Dr. Nandalal Weerasinghe and senior officials provided an update on the independent forensic audit being conducted by Deloitte India and outlined measures taken to safeguard the bank’s stability.

The CBSL said fieldwork commenced on 2 May and an interim report is expected next week, while the final report is scheduled to be submitted on 18 July. The audit is expected to establish the nature and root cause of the fraud, examine the modus operandi, verify the loss amount, analyse financial transactions, and review internal systems, ledgers, and controls.

A significant portion of the hearing focused on the scope of the investigation. CoPF members questioned why NDB had participated in drafting the terms of reference despite being the institution under investigation.

CBSL officials clarified that while an initial draft had been prepared through the bank for procurement purposes, the regulator ultimately determined the scope and inserted all substantive requirements.

‘The mandate and scope were defined by the CBSL,’ Dr. Weerasinghe said, noting that the final authority over the audit framework rested with the CBSL.

The Committee also sought an explanation for the decision to extend the forensic review period to a decade.

The CBSL responded that the employee alleged to be at the centre of the fraud had worked in the reconciliation and transaction-input functions for more than nine years, making a 10-year review necessary to determine whether similar irregularities had occurred previously.

Lawmakers then turned their attention to the issue that has become central to the case: the unusually large balances recorded as receivables linked to Customer Electronic Fund Transfer (CEFT) transactions.

LankaPay CEO Channa de Silva explained that CEFT operates as a real-time interbank payment system where customer accounts are debited and credited immediately, while settlements between banks are completed through periodic net settlement cycles via the Real Time Gross Settlement (RTGS) system.

Under normal operating conditions, settlements are completed within hours, with longer delays occurring mainly over weekends and public holidays. Committee members questioned how balances reportedly rising from around Rs. 3 billion to more than Rs. 12 billion could accumulate under such a framework without attracting greater scrutiny.

One member observed that, based on LankaPay’s explanation, a balance of Rs. 13.2 billion within what is effectively a short settlement cycle appeared difficult to understand.

The CBSL acknowledged that the increase in ‘other financial assets’ had been identified during supervisory reviews and that inquiries had been made with NDB. However, officials maintained that banking supervision is fundamentally prudential in nature and does not involve transaction-level auditing.

‘We conduct prudential supervision and not transaction audit or forensic audit,’ a CBSL official told the Committee, adding that responsibility for transaction verification primarily rests with the Board of Directors, Audit Committee, internal audit, and external auditors.

That explanation drew criticism from several members, who argued that a balance of such magnitude should have triggered stronger supervisory intervention, particularly when the figures had increased sharply over successive reporting periods.

The CBSL nevertheless maintained that the fraud had not undermined the bank’s financial soundness.

Officials said NDB had already restated its financial statements to reflect the full Rs. 13.2 billion fraud exposure and continued to meet all regulatory requirements relating to capital adequacy and liquidity under Basel standards.

The regulator said it had intensified supervision of the bank, held discussions with current and former auditors, and required NDB to submit corrective action plans aimed at strengthening governance, risk management, and internal controls.

Among the measures already imposed are directives relating to key management personnel, strengthening oversight of reconciliation functions, revising reporting lines, and preventing redesignation of senior officers until investigations are completed. The CBSL said NDB’s capital and liquidity positions are now being monitored on a weekly basis.

Another contentious issue was whether the forensic audit would examine the conduct of the CBSL itself.

Committee members argued that the investigation should assess not only what occurred within NDB but also whether regulatory shortcomings contributed to the prolonged concealment of the fraud.

CBSL officials initially stated that the forensic audit was focused on NDB and would not specifically evaluate the performance of the regulator. However, Dr. Weerasinghe noted that elements of the mandate dealing with governance failures, control weaknesses, and oversight mechanisms could encompass wider supervisory considerations.

The hearing also revisited concerns raised by the International Monetary Fund (IMF) regarding banking supervision.

Members referred to the IMF’s 2023 Governance Diagnostic Assessment, which identified weaknesses in supervision, operational risk oversight, governance, and anti-money laundering controls.

The CBSL said most recommendations had since been addressed through reforms, including the new Banking Act enacted in 2024, strengthened corporate governance directions, and revised rules governing related-party transactions.

However, lawmakers pointed to the IMF’s latest review, released in May, which highlighted the need to strengthen supervision of operational risk management and financial integrity frameworks following the fraud at a regulated financial institution.

Concluding the discussion, Dr. de Silva said many of the outstanding questions could only be answered once the forensic audit is completed. He indicated that the CoPF would revisit the matter after the interim and final reports are received and suggested that a future session could be dedicated to reviewing the CBSL’s supervisory framework more broadly amid concerns about potential systemic vulnerabilities.