I had expressed my concerns in the media four months ago  that the reputation of the Indegenous Chartered Accounting Profession had been tarnished due to the much publicized allegation that the Institute of Chartered Accountants of Sri Lanka (ICASL) was engaged in a cover-up in respect of the investigation in to the alleged professional misconduct of Ernst & Young (E & Y) and Price Waterhouse Coopers (PWC) in providing professional services to the Government.

Since then the council has maintained a deafening silence, like most institutions and individuals in this country who do not seem to care about bringing themselves into disrepute, but carry on regardless.

As I wrote before, the Council of the ICASL has violated the Act of incorporation of the ICASL as follows.

Sec 17( 2 ) ( a ) Where the Council has reasonable cause to believe, whether on a complaint made to it or otherwise, that any person who is a member of the Institute has been guilty of professional misconduct, the Council may appoint an investigating committee to inquire into and report to the Council, whether a prima facie case of professional misconduct has been made against such member

( b ) Where an investigating Committee appointed under paragraph ( a ) reports to the Council that a prima facie case of professional misconduct has been made out against a member, the Council SHALL appoint a disciplinary Committee for the purpose of inquiring into the conduct of such member.

The act further goes on to say that “for the purposes of any inquiry to be held under section 17 of the Act, the Council shall appoint, by drawing lots if the Council so determines, three persons from among its members to constitute a Disciplinary Committee and shall appoint one of them to be Chairman of the Committee”.

THIS HAS NOT HAPPENED FOR MORE THAN EIGHT MONTHS.
As I said previously I am not passing judgment on E & Y or PWC on whether they are guilty of professional misconduct or not as that is not my role. I am faulting the Council of the ICA for violating the act of incorporation of the ICASL.

COUNCIL ELECTIONS DECEMBER 2007
I have just received a circular calling nominations for Elections to the Council of the ICASL. The Election is scheduled for late December. The very same Council members who invited political interference in November 2005 and then over the last 2 years, ‘Governed Irresponsibly” by inaction thus permitting the ICASL to lose its reputation and credibility on a major issue of Ethics, Conflict of Interest and Professional Misconduct are now seeking re-election for what purpose? In all probability the very same Government nominees will also be re-appointed.

A Council member who was nominated by the then Trade Minister in January 2006 to serve a two year term, was removed after one year, by the incumbent Minister.

The probable reason for his removal was that he was out spoken and came out strongly against acts of servility by a weak Council. His removal is also a violation of the Act of incorporation of the ICASL as a Council member holds office for a period of two years from the date of his appointment or election. A Council member vacates office only by resigning or if he ceases to be a member of the Institute. What is shameful of course is that the Past President appointed in lieu of the member who was unceremoniously removed, is the Managing Partner, of a firm under investigation.

Another Council Member is a partner of a second firm which, and its former Managing Partner of which, is under investigation. Should not the system at the ICASL, preclude a partner (with joint and several liability) of a firm which is pending investigation from serving as a Council Member?

We now have a case where a Minister violates the constitution of the ICASL in one respect and the Council follows in his footsteps by violating another clause in the constitution as well as promoting “The Art & Style of Conflict of Interest” rather than promoting the much publicized and World Bank funded, “Governance”.

On top of this we invite as our Chief Guest for the Annual Conference, a person who has become the biggest joke in this country.

If a Head of State violates the Constitution of a country he can be impeached. If Directors of a Company, act outside the Memorandum and Articles of a Company they can be removed. Shouldn’t this same yardstick be applied to the Council of the ICASL?

As this Council by its acts of omission has brought the Chartered Accountancy profession into disrepute, its members should honourably resign forthwith.

C.Ramachandra F.C.A.
Colombo 7.