CIMA UK: Conduct Unbecoming

by Dushy Ranetunge writes from London

(December 20, London, Sri Lanka Guardian) An exclusive investigation by the “The Island” , Colombo based daily newspaper into the suspension of the CIMA council in Sri Lanka by its controlling entity in the United Kingdom has exposed serious issues of negligence, lack of integrity and transparency by CIMA global in the United Kingdom.

The cause of friction has been the appointment of Bradly Emerson as CEO of CIMA Sri Lanka by CIMA Global in the UK. It is alleged that the CIMA Global CEO, Charles Tilley, made the appointment without first obtaining written references from Emerson’s past employers, a practice that would be regarded as serious negligence.

The appointment of Emerson by CIMA Global UK in May 2007, was the beginning of serious deterioration in relations leading to the recent suspension of the CIMA Council in Sri Lanka.

CIMA Sri Lanka had placed a catalogue of allegations and good governance issues, before Charles Tilley CEO of CIMA Global.

In response, CIMA global had appointed an “independent” investigator to look into the allegations. The conclusion of this investigation had resulted in the decision to suspend the council, with CIMA UK backing Emerson appointed by them, against the CIMA Sri Lanka Council.

CIMA established under Royal Charter is expected to uphold the highest standards of integrity and ethical behavior. Several in the CIMA Sri Lanka council had felt that the appointment of Emerson would seriously undermine these high standards. The Council is the de facto board of directors of the CIMA Sri Lanka Division. The overwhelming majority of its members are elected by the members of CIMA resident in Sri Lanka. It represents the Sri Lankan membership. Furthermore, under the Divisional Rules it is responsible for the administration, accounting and finance of the Division.

In October 2007, the CIMA council of Sri Lanka had placed damning evidence before the then President of Worldwide CIMA, Gordon Grant.

The evidence was from Pan Asia Banking Corporation Plc, where Emerson had worked previously as Deputy CEO till end of October 2006, when Emerson submitted his resignation. He was given special leave for six months, until April 2007, by PABC Bank?s board of Directors.

However, there was other evidence attached which raised serious questions as to Emerson?s integrity. This evidence shed light as to the reasons for Emerson?s resignation.

It related to certain serious irregularities, which led PABC Bank to appoint a board Sub Committee to investigate Emerson. The explanations provided by Emerson to the findings of the board Sub Committee were found to be unsatisfactory and the board had decided to take disciplinary action against Emerson for negligence and misconduct, which implicated the banks reputation.

The Board had then decided to give Emerson two options. If Emerson submitted his letter of resignation immediately, the board was prepared to pay his salary for 6 months and grant him paid leave till April 2007. If he had refused to resign immediately, the board was to terminate his employment immediately with 3 months salary on grounds of misconduct/negligence.

Even by UK standards, Emerson?s past employment record places him as being unsuitable to hold the position as CEO of CIMA Sri Lanka.

But the most extraordinary aspect of this sordid affair is that CIMA global in the UK, in the face of this damning evidence has chosen to ignore it on the grounds that the evidence had been obtained or were provided unofficially and are inadmissible.

No attempt had been made by CIMA Global to telephone PABC bank and obtain further information despite the possibility of obtaining such information unofficially, was communicated to CIMA Global.

The above is a view taken by CIMA UK, a view to consolidate UK?s interests in CIMA Sri Lanka at the cost of defending poor employment practices and defending an unsuitable candidate as CEO. The motive behind the view is clear.

Gordon Grant, President of CIMA global, while dismissing the evidence as being inadmissible had emphasized the need to maximize revenue in Sri Lanka.

It is alleged that CIMA Sri Lanka is CIMA Global?s most successful division, with revenues exceeding Pounds Sterling three million with a Sri Lanka membership of 2000 and a student population of nearly 13,500.

Another factor that led to the suspension of the Council may have been the council?s drive to maintain local accountability, while London may have wanted to consolidate their grip via Emerson, who was appointed by them.

It seems that in the quest of maximizing revenue in Sri Lanka, CIMA global is prepared to suspend the CIMA council in Sri Lanka, and defend the inappropriate appointment of Emerson by London, without written references, in breach of procedural norms of recruiting a person of high integrity to the post of CEO in Sri Lanka.

Gordon Grant, former President of CIMA considers the issues raised by the divisional council in Sri Lanka to be of seriousness to all their reputations. He was of the opinion that it could prove to be calamitous. - Sri Lanka Guardian