Friday, 11 October 2019 06:08

Details of NSB fixed deposit financial fraud revealed

Details of a financial fraud of withdrawing cash from National Savings Bank fixed deposits belonging to Postgraduate Institute of Science (PGIS) Peredeniya University have been revealed.


As per the General Instruction Circular No.381/76, repayment of deposits of Cooperative Societies, Companies, Firms, Clubs, Associations and Similar Institutions or bodies including deposits held in trust or by Trustees should be made through an Account Payee only cheque favouring the depositor as mentioned in the deposit receipt.
Cash should not be paid on such deposits under any circumstances nor should the Account Payee instructions on cheques issued on account of such deposit be cancelled without the permission of the Regional Manager.
However, it was observed that 14 number of fixed deposit certificate of PGIS (Postgraduate Institute of Science Peradeniya University) amounting to Rs.93.29 million were uplifted & paid by cash violating the instructions specified in the circular No.381/76.
National Saving Bank Fraudulent withdrawals amounting to Rs. 94.7 million were outstanding as at 31 December 2017 and it indicates Rs.0.7 million or 0.81 per cent decrease compared with the previous year.
The above total balance had remained outstanding for more than one year and a sum of Rs. 11.2 million had remained outstanding for over five years.
According to the Section 47(4) of the National Savings Bank Act No.30 of 1971,Payments made to customers out of deposits transferred to unclaimed deoposit reserve shall be paid as soon as possible by the Secretary to the Treasury out of the Cosolidated Fund to the bank.
Although the bank had paid Rs. 275.42 million during the period from 2012- 2017 , the Secretary to the General Treasury had not reimbursed aforesaid amount as at 31 December 2017.

(LI)

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