News
Sugar scams continue: COPA reveals govt. yet to introduce licensing system
Customs caused over Rs 114 mn in losses
The Committee on Public Accounts (COPA) has recently discussed how the Finance Ministry directive, issued in Oct 2020, resulted in a massive loss of revenue and the failure on the part of those in authority to take remedial measures in the wake of the media exposure of the scam.
The Parliament, in a media statement issued yesterday, said that the COPA examined a special audit of the reduction in the excise duty on a kilo of sugar from Rs. 50 to Rs. 25 cents. The watchdog admitted that the relief had not been passed on to the consumer and that the inordinate delay in introducing a licence system for sugar imports caused heavy osses to the state coffers.
The COPA would take up the failure to issue licences on 21 June.
The statement dealt with several other issues. The text of the statement: “The Committee on Public Accounts held recently drew special attention to the quantity of ethanol imported for use in Sri Lanka and the lack of proper regulation with importing institutions.
The Import and Export Control Department officials were instructed to submit a report to the Committee within two weeks containing the procedure for issuing licenses for the importation of ethanol into the country by various companies, information on each of these companies and the quantity of ethanol imported by those companies. It was also emphasised that the quantity of ethanol imported for other products, including pharmaceuticals, other than alcohol, and the proper use of ethanol for those products, should be taken into consideration.
Furthermore, the Committee inquired into the issuance of licenses for the importation of vehicles and spare parts to Sri Lanka. Although it had previously instructed to take the necessary steps to formulate a proper procedure in coordination with the Department of Motor Traffic, the Committee expressed its displeasure that no action had been taken in this regard. In addition, it was further requested that a suitable methodology be prepared to maintain the relevant activities in a more efficient and transparent manner and submit a report to the Committee within a period of four months.
The Committee also noted the lack of a standardised computer system to carry out the activities of the Department of Import and Export Control.
The Committee pointed out that the lack of proper coordination with the Direct Liaison Institutions, such as the Excise Department, the Department of Motor Traffic and the Sri Lanka Customs, is very problematic in conducting the activities of the Department and was instructed to take the necessary steps to do computer networking immediately.
To this end, the importance of liaising with institutions such as the Information and Communication Technology Agency of Sri Lanka (ICTA) and the Telecommunications Regulatory Commission was also emphasised.
Although the officials of the Department of Import and Export Control were informed about this matter in the year 2016, the Committee expressed its displeasure that this work has not been done so far and considering the importance of this, the Chairman of the Committee decided to appoint a Sub-Committee to inquire into its progress. Also, attention was drawn to the subsequent transfer of vehicles imported under the prize scheme to various parties. Accordingly, after the vehicles were imported under the gift scheme, the officers present were asked about the transfer of the vehicles to other parties.
The officials informed the Committee that the vehicles so imported on a tax concession basis could not be transferred to another party until five years have elapsed. They stated that even after five years of such transfers, the necessary procedures have been put in place to recover the normal tax value of the relevant vehicles.
The Committee also emphasised the importance of proper follow-up and regulation of licenses for vehicles imported under the gift scheme.
The Committee inquired about the loss of customs duty of 114.6 million rupees due to incorrect customs associated classification numbering of 33 used cars in the year 2017 contrary to the provisions of Gazette Notification No. 1933/13 dated 21st September 2015, Gazette Notifications for Vehicles subject to Licensing Control and Instructions given by the Minister of Development Strategies and the Minister of International Trade and the Minister of State to the Controller of Imports and Exports. It was also informed that the full investigation has been handed over to the CID. The Chairman of the Committee instructed to submit a report on its progress to the Committee within two weeks.
Members of Parliament Lasantha Alagiyawanna, Tissa Attanayake, Duminda Dissanayake, Udaya Gammanpila, Dr. Sudarshini Fernandopulle, Mohomad Muzammil, Niroshan Perera, Ashok Abeysinghe, Hesha Withanage, Sivagnanam Shritharan, Weerasumana Weerasinghe, (Prof.) Ranjith Bandara, B.Y.G Rathnasekara, and Dr. Upul Galappaththi, were present at the Committee meeting.
News
Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up
Harsha rejects what he called frivolous accusations
Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.
The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”
Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.
The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),
M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).
Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.
Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”
The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).
Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.
Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.
Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).
by Shamindra Ferdinando
News
Viral diseases on the rise
The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.
Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).
He said more than half of the reported cases—around 51 percent—were from the Western Province.
According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.
The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.
Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.
The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.
by Chaminda Silva
News
Ranil warns of another economic crisis, calls for Opposition unity
Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”
Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.
He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.
Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.
Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.
Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.
He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.
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