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Rs. 773 bn arrears: Go after massive tax dodgers before imposing new taxes – GMOA

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=AG alleges Inland Revenue withheld info citing Constitution

By Shamindra Ferdinando

The Government Medical Officers Association (GMOA) yesterday (02) asked the government to explain its continuing failure to recover as much as Rs 773 bn in taxes, penalties and interest against the backdrop of unprecedented new tax hikes to bridge the record deficit.

GMOA Secretary Dr. Haritha Aluthge told The Island that the disclosure made by the Committee on Public Accounts (COPA) on Nov 28 exposed the overall effect ofthe failure byparliament to meet its obligations pertaining to public finance.

The government should have gone flat out to recover taxes, penalties and interests owed by various entities before new revenue generation measures were proposed, Dr. Aluthge said, demanding that the government to come clean on the issue.Responding to another query, Dr. Aluthge said

that what transpired at COPA meeting chaired bySamagi Jana Balvegaya(SJB) MP Kabir Hashim on Nov 28 exposed how successive governments conveniently allowed the situation to deteriorate. Former Minister Hashim succeeded Prof. Tissa Vitharana in the wake of the re-opening of parliament followingitslast prorogation.

The COPA disclosure was nothing but an indictment on the government, Dr. Aluthge said, urging the Finance Ministry and other relevant institutions to address the issue at hand. Why the entire population should suffer due to utterly corrupt and incompetent lot neglecting their responsibilities?Dr. Aluthge asked.

Referring to the statement issued by the Director Legislative Services on Nov 29 consequent to COPA meeting on the previous day, Dr. Aluthge pointed out that the Inland Revenue Department had been summoned by the parliamentary watchdog committee to examine whether COPA recommendations given on March 24, 2021 were implemented.

The top GMOA official said that he was quite baffled that theburningissue hadn’t been given priority in spite of the financial crisis that caused an unparalleled explosion of public anger.

COPA meeting that had been chaired by MP Hashim were attended by State Ministers Mohan PriyadarshanadeSilva, Lasantha Alagiyawanna, Kader Mastan, (Dr.) Suren Raghavan and Diana Gamage as well as MPs Tissa Attanayake, Ashok Abeysinghe, Dr. Sudarshini Fernandopulle, Major Pradeep Undugoda and Weerasumana Weerasinghe.

Dr. Aluthge said that according to figures released by COPA, the total arrears as at June 30, 2022 amounted to a staggering Rs 773,957,856,618 inunpaidtaxes, penalties and interests. The GMOA official pointed outthatCOPA had acknowledged that out of that amount Rs 201,400,855,198 could be collected as there was no legal impediment whereas the recovery of the remaining Rs 572,557,001,420 was on hold temporarily due to various reasons.

Referring to COPA proceedings, Dr. Aluthge said that the Auditor General had quite clearly asserted that the total amount due to the Inland Revenue was Rs 773,957,856,618 in terms of RAMIS (Revenue Administration Management Information System) and Legacy Systems.How could a bankrupt government be so irresponsible?Dr. Aluthge asked.

The GMOA Secretary also faulted the media for not providing sufficient coverage to the issues dealt by parliamentary watchdog committees. The waste, corruption, irregularities and mismanagement that had been exposed by these watchdog committees over the years proved over and over again the parliament was responsible for the current unprecedented crisis, Dr. Aluthge said.

The shocking disclosure made by the Auditor General that the RAMIS system installed at a staggering cost of over Rs 10 bn to ensure smooth collection of revenue was yet to be fully and properly operational painted a bleak picture, Dr. Aluthge said.

Referring to COPA proceedings again, Dr. Aluthge said that the Auditor General was on record as having said that though deficiencies of RAMIS system had been brought to the notice of COPA on several occasions remedial measures were not taken.

“The parliament owed the public an explanation. The parliament cannot absolve itself of the pathetic and reckless handling of public finance that finally led to Sri Lanka tagged as a bankrupt country,” Dr. Aluthge said.

Dr. Aluthge said that the GMOA sincerely believed the parliament would at least now hear what the Auditor General told COPA of his efforts to get to the bottom of RAMIS installation.

Janakantha Silva, Director Legislative Services and Acting Director Communication in a statement that dealt with COPA meeting chaired by MP Hashim quoted the Auditor General as having said that the Inland Revenue Department declined to release the RAMIS agreement and related payments, the agreement barred the Inland Revenue from releasing the information sought by him. The Auditor General has further alleged that the Inland Revenue Department withheld information pertaining to the RAMIS agreement claiming the release of the agreement violated the Constitution.

How could the Auditor General be deprived of an agreement entered into by the Inland Revenue on behalf of the government? Dr. Aluthge asked.COPA Chairman Hashim has declared that an audit would be conducted on the RAMIS deal if the report sought from the Inland Revenue within a month in respect of the same was not satisfactory.

Dr. Aluthge said that he couldn’t believe that action hadn’t been taken in respect of 4,831 return checks worth Rs 2,488,003,615 (2.4 billion) received by Inland Revenue as at June 30. According to COPA 3,817 of these returned cheques worth Rs. 1,429,356,750 rupees were more than 3 years old. The Inland Revenue has said that the department lacked the authority to take legal action.

Pointing out that COPA Chairman has advised Inland Revenue to inform him of the action in this regard in consultation with the Attorney General , Dr. Aluthge said if the parliament bothered to inquire into what was happening in the revenue collection set up the current crisis could be easily explained.

Dr. Aluthge recalled comprehensive tax proposals submitted by Prof. W.D. Lakshman during President Mahinda Rajapaksa’s second term were never implemented. In fact, the library of the parliament didn’t have a copy of it, Dr. Aluthge alleged, urging the parliament to address the issues at hand without further delay or prepare to face the consequences.



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Renewed Lanka’s Easter Bombing probe puts NTJ’s South India radicalisation network back under lens

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New Delhi (IANS):The arrest of Sri Lanka’s former Intelligence chief, Retired Major-General Suresh Sallay is a turning point in the investigations into the 2019 Easter Sunday bombings that killed 279 people.

The move was a bold one taken by President Anura Kumara Dissanayake who won the presidency in 2024.

He had promised that all persons involved in the attack would be brought to justice.

Sallay was made State Intelligence Service (SIS) chief in 2019 after Gotabaya Rajapaksa became President.

The allegation against Sallay was that he had permitted the attack to take place with the intention of influencing that year’s presidential election, which was eventually won by Rajapaksa.

Sallay had become a prominent figure in Sri Lanka and was widely credited with dismantling the LTTE. His arrest has led to a political storm and many state that it could revive tensions relating to the LTTE.

Ali Sabry, former Sri Lankan Minister for Foreign Affairs said that the developments are deeply troubling.

An Indian official said that the developments in Sri Lanka are being monitored closely.

On the question whether the LTTE issue would come back into the picture following the arrest of Sallay, the officer said that attempts are being made, but it would be very tough.

There have been several cases that the National Investigation Agency (NIA) has been probing concerning the revival of the LTTE.

The ISI, too, has tried its hand in ensuring the revival of the LTTE, but has not been successful so far.

To prevent the revival of the LTTE, both India and Sri Lanka have been working very closely.

Another official explained that the current ties with Sri Lanka have gone from ideological to an investment-led partnership.

Prime Minister Narendra Modi and President Dissanayake share a pragmatic relationship and this has gone a long way in ensuring cooperation on all fields including security, the official explained.

While some in Sri Lanka do not subscribe to Dissanayake’s decision on Sallay, the fact is that the Easter Bombing case has to be probed from every possible angle.

An Intelligence Bureau official says that a major concern today are the activities of the National Thowheeth Jama’ath (NTJ) and Jamathei Millathu Ibrahim (JMI), the two outfits responsible for this attack.

The NTJ in particular has a vast presence in South India and has managed to radicalise a large number of youth in Tamil Nadu and Kerala.

The mastermind of the attack, Mohammad Zahran Hashim was a frequent visitor to Tamil Nadu. He was also responsible for the radicalisation of Jamesha Mubeen who carried out an unsuccessful attempt to bomb a temple in Coimbatore in 2022.

The Indian agencies have been actively pursuing the role played by Hashim. A probe by the NIA in the South India radicalisation case revealed that the entire plot was being run by Hashim from Sri Lanka.

At least 50 of the 100 radicalisation videos seized by the agency were discourses by Hashim, who had close links with the Islamic State.

Officials say that Sallay could provide details to investigators about the module that Hashim ran.

This would come in handy for the Indian agencies who are probing cases directly linked to the NTJ in South India.

Hashim, who was the ring leader for the suicide bombers during the Easter Bombing had spent a considerable amount of time in India.

The Indian agencies would want to learn if any of the locals that Hashim interacted with had any idea about the Easter Bombings.

While in India, Hashim had focussed his radicalisation programmes mainly at Mallapuram, Coimbatore, Nagapattinam, Kanyakumari, Ramnathpuram, Vellore, Trichy and Thirunelveli, the NIA probe found.

Pallay has for now denied any links to the Easter Bombings.

Indian officials say that they do not want to comment on Pallay and his alleged links.However, it is important that the bombings are probed thoroughly since the activities of the NTJ have a direct bearing on India, particularly the southern states, the official also added.

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Sajith warns: Don’t let trade union action stall cyclone relief

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa on Friday stressed that relief efforts for communities affected by Cyclone Ditwah must not be derailed by internal disputes, as several trade unions announced plans to withdraw from disaster relief duties.

Taking to ‘X’, Premadasa called on the Government to prioritise coordination and ensure uninterrupted assistance to families still awaiting aid.

“The Government must work closely with officers on the ground to ensure coordination and uninterrupted support. When families are still waiting, how can we allow for this confusion?” he questioned, emphasising that relief measures should not be delayed under any circumstances.

His remarks follow the decision by several trade unions representing Government officers engaged in disaster relief operations to launch trade union action beginning from Friday (27 February).

The unions announced their withdrawal from relief-related duties, citing unresolved issues affecting officers involved in post-disaster operations.

According to the unions, more than 93 days have elapsed since the widespread destruction caused by Cyclone Ditwah. During this period, disaster relief officers and Grama Niladharis have worked continuously, day and night, acting as key coordinators between the Government and affected communities. However, they claim that authorities have failed to adequately address longstanding concerns relating to officers engaged in relief work.

Meanwhile, Secretary to the President Nandika Sanath Kumanayake yesterday underscored the need to expedite relief and recovery initiatives.

Chairing a progress review meeting of the National Council for Disaster Management, he called for strengthened coordination among State institutions responsible for disaster response, noting that effective inter-agency collaboration is critical to delivering timely assistance to affected communities.

Efforts to accelerate recovery and maintain continuity in relief operations are ongoing.

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Complaints filed with CID, Bribery Commission over alleged substandard coal deal

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Allegations surrounding the importation of substandard coal intensified yesterday, with civil society representatives and Opposition MPs lodging complaints with the CID and the Commission to Investigate Allegations of Bribery or Corruption, calling for comprehensive investigations into the procurement process and alleged financial losses to the State.

A group of civil organisation representatives submitted a complaint to the CID on Friday (27 February), requesting a probe into what they described as irregularities in the coal procurement process and the resulting loss to the country.

Addressing the media, Ananda Palitha, Convenor of the Samagi Joint Trade Union Alliance affiliated with the SJB, alleged that tender procedures had not been followed properly and claimed that emergency purchases had facilitated corruption.

“The tenders are not called on time. The same company that was previously blacklisted after attempting to bring in substandard rice is now

being awarded the coal tender. They have been given time until July to get registered. The corruption is already confirmed. It is very clear with these emergency purchases,” he charged.

Palitha also expressed confidence that the current President would not interfere with investigations into the coal imports, drawing a comparison to the legal action instituted against former Minister Keheliya Rambukwella over the substandard medicine import controversy during the previous administration.

Meanwhile, a group of SJB parliamentarians filed a separate complaint with the Bribery Commission on Thursday (26 February) over the same issue. MPs Mujibur Rahman, Chaminda Wijesiri, Sujith Sanjaya Perera and Kavinda Jayawardena met Commission officials to formally submit their complaint.

Speaking to the media afterwards, MP Mujibur Rahman alleged that the company concerned had violated two key contractual conditions — by supplying substandard coal and by failing to deliver shipments within the stipulated timeframe.

He contended that either of these violations would be sufficient grounds to cancel the agreement, but claimed the Government was attempting to justify the transaction by asserting that no fraud had occurred.

“By now it has been revealed that this transaction is corrupt,” he said, adding that the Bribery Commission, which had previously conducted extensive investigations into allegations against the former Government, should similarly take action to recover what he claimed was Rs. 7,000 million in public funds lost due to the deal.Investigations into the matter are ongoing.

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