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Customs suffered Rs. 6.1 bn loss due to negligence

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…Rs 220 mn revenue denied due to fraud

By Saman Indrajith

Two leading palm oil companies had caused a loss of Rs. 6,130 million to the Sri Lanka Customs between 2013 and 2016, the Committee on Public Accounts (COPA) was informed, on Thursday.

The COPA was informed that an audit conducted by the Auditor General’s Department had revealed that the loss was due to the negligence on the part of Sri Lanka Customs officials, who failed to clear specific goods, under the Harmonized System (HS Code).

Although Secretary to the Treasury and Ministry of Finance, S.R. Attygalle, had already taken measures to investigate and recover the losses incurred by the state, the COPA directed the Sri Lanka Customs also to take immediate action in that regard, and Director General of Sri Lanka Customs Major General Vijitha Ravipriya agreed to do so.

The Director General of the Sri Lanka Customs and its high-ranking officials, officials of the Ministry of Finance and officials of the Auditor General’s Department were present at the Committee on Public Accounts meeting, chaired by Prof Tissa Vitharana.

It was also revealed that since 2013, the government had lost revenue to the tune of Rs. 220 million because importers had registered imported vehicles as dual-purpose vehicles for special purposes. A minimum of Rs.1,300 million could have been levied on 443 specialized vans, from 2010-2019, according to sources.

Another major irregularity revealed through the audit, pertaining to the importation of 10 vans and 414 lorries under special purpose vehicles, from the year 2010, was taken up for discussion by the Committee.

The Committee was informed that a luxury car, fraudulently registered as a special purpose vehicle, valued at nearly Rs. 9 million, had been released by the Sri Lanka Customs with a levy of only Rs. 1.5 million. Had the vehicles been cleared under the relevant category of vehicles, the levy payable to the Government would have been approximately Rs. 56 million. It was proposed to expedite the maintenance of a computer comparison system as previously recommended by the Committee with the concurrence of the Secretary to the Treasury and Ministry of Finance, following talks the Treasury Secretary Attygalle had with the Sri Lanka Customs and the Department of Motor Traffic.

The members of the Committee agreed to assist in the legislative process, if amendments to any Acts were required, for the aforesaid purpose.

Failure to implement an adequate internal control system, within the Sri Lanka Customs, pertaining to the process of imports and exports, following the release of six containers of perfume, worth Rs. 39,335,091, declared as medication, causing the government a loss of Rs. 40,761,600, and lack of punitive action against errant officials involved in the act of fraud, were revealed at the Committee meeting.

Taking into consideration issues such as the officials of Sri Lanka Customs responsible for generating 32.48% of the revenue for the year 2019 opposing a biometric attendance system, weaknesses of internal governance, issues pertaining to the recruitment of an Attorney and a Chief Internal Auditor for the Legal Department, members of the COPA mutually agreed to summon the Sri Lanka Customs again.

State Minister Dayasiri Jayasekara, Shehan Semasinghe, Prasanna Ranaweera and MPs Tissa Attanayake, Ashoka Abeysinghe, Gunapala Ratnasekera, Weerasumana Weerasinghe, Prof. Ranjith Bandara, Niroshan Perera, Gamini Waleboda, S. Shritharan, Prof. Harini Amarasuriya,  and Upul Galappaththi, were present at the meeting.



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General election: Political parties urged not to nominate undesirables

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Rohana Hettiarachchi

‘No harm in accommodating those who have been unseated by SC on disciplinary grounds’

by Shamindra Ferdinando

The March 12 Movement, which consists of election monitoring groups and civil society outfits, has asked political parties not to field those who have been found guilty by courts on corruption charges and other criminal offences, at the parliamentary election scheduled to be held on 14 Nov.

Executive Director of PAFFREL (People’s Action for Free and Fair Elections) Rohana Hettiarachchi, who is also the co-convenor of the March 12 Movement, said that if those facing legal proceedings were included in nomination lists, political parties concerned would be answerable to the public.

Against the backdrop of the peaceful presidential election and incident-free post-poll environment, tangible measures could be taken to clean up political parties, Hettiarachchi said. Responding to The Island queries, the civil society activist said political parties had to handpick suitable persons as National List nominees.

“The inclusion of one undesirable character in a particular list can be disastrous for the entire party,” Hettiarachchi said, urging the electorate to exercise their franchise to stop re-entry of disreputable politicians regardless of the party they represented.

Hettiarachchi referred to the Colombo High Court imposing a two-year RI sentence on Minister Prasanna Ranatunga in June 2022 over the Meethotamulla land dispute case and his subsequent appeal against the HC decision as well as Minister Nimal Siripala de Silva’s resignation in July 2022 in the wake of bribery allegations and reinstatement in the following month.

Hettiarachchi underscored the need for a drastic change in political parties’ approach towards transparency.

Responding to another query, Hettiarachchi said that those who had been unseated by the Supreme Court on disciplinary grounds couldn’t be deprived of nominations on corruption accusations. Hettiarachchi was referring to SC decision to unseat Batticaloa District MP Nazeer Ahamed in Oct 2023 and. removal of Manusha Nanayakkara and Harin Fernando in August 2024.

Hettiarachchi asserted that former State Minister Diana Gamage’s situation couldn’t be compared with previously mentioned cases as she was deprived of her National List slot for failing to prove her Sri Lankan citizenship.

The arrest of gold smuggling Muslim National Alliance (MNA) MP Ali Sabry Raheem at the BIA in March 2023 and the failure on the part of Parliament and his party to deal with him emphasized the responsibility on the part of the voters to elect suitable people.

Over 17. 1 million people are eligible to vote at the general election.

Hettiarachchi said that the March 12 Movement would go all out to encourage the electorate to keep undesirable elements out of parliament.

The civil society activist pointed out how Health Minister Keheliya Rambukwella, arrested on corruption charges, had been cleared by Parliament in the second week of Sept. 2023.  Following a three-day debate, 113 MPs voted against the no-faith motion directed at Rambukwella whereas 73 supported it.Hettiarachchi said that those who stood by the former minister owed the public an explanation

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Nationwide population and housing census commences today

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Anoja Senavirathna

The Department of Census and Statistics will commence the collection of personal and housing information for the 15th Census of Population and Housing on Monday (7).

Director General of the Department, Anoja Senavirathna, told journalists in Colombo on Sunday (6) that around 50,000 officials would function as enumerators.

She said Sri Lanka usually held a population census once every 10 years, but the last census had been delayed due to the COVID pandemic and the economic crisis.

Sri Lanka last conducted a population census in 2012. (RK)

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Easter Sunday Carnage: President promises a thorough probe

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Colombo Archbishop Cardinal Malcolm Ranjith showing a bloodstained statue to President Anura Kumara Dissanayake at St. Sebastian’s Church in Katuwapitiya, Negambo yesterday.

By Norman Palihawadane

President Anura Kumara Dissanayake yesterday said that he believed a significant factor that had swayed voters in the recent presidential election was their quest for justice in respect of the Easter Sunday terror attacks.

Addressing a meeting at St. Sebastian’s Church in Katuwapitiya, Negombo, with the families of those killed and injured in the Easter Sunday attack, President Dissanayake said he would ensure that justice would be served expeditiously.

President Dissanayake visited the church in the morning, and laid flowers at the memorial dedicated to the victims. He said there was a need to conduct a thorough investigation with an open mind. He instructed the Secretary to the Ministry of Public Security to ensure that the investigation remained transparent and impartial.

He said that there was widespread belief in society that the Easter Sunday attacks may have been politically motivated. If politics in the country has descended to such extremes, the top priority must be to reverse that dangerous situation. There are also suspicions regarding potential involvement by some state agencies in the carnage.

Cardinal Malcolm Ranjith, Archbishop of Colombo, Rev.Fr. Manjula Niroshan, the mission in charge of Katuwapitiya Church, along with a large number of Easter attack victims and devotees, attended the event.

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