News
Rs. 16 bn sugar duty scam: Recovery of losses further delayed
MP says ex-Prez should be questioned over Minister’s disclosure
By Shamindra Ferdinando
State Finance Minister Ranjith Siyambalapitiya yesterday (02) said that the recovery of at least part of revenue losses caused by the alleged sugar tax scam, (2020), couldn’t be done in a hurry.
Siyambalapitiya said so when The Island asked the State Minister how soon the government could recover 30 percent of Rs 16 bn loss in revenue in terms of an assurance he gave Parliament less than a week before the presentation of Budget 2023.
State Minister Siyambalapitiya said the recovery process could take over a year, depending on accounting years of the relevant sugar importers. On Nov. 09, he told Parliament the Treasury had suffered losses amounting to Rs 16 bn due to the unprecedented reduction of duty on a kilo of white sugar, from Rs 50 to 25 cents, from 13 Oct., 2020. He is on record as having said that the Treasury could recover only 30 percent of Rs 16 bn estimated loss.
Siyambalapitiya assured Parliament that the government would ensure such unilateral decisions couldn’t be taken in the future.
The then Prime Minister Mahinda Rajapaksa served as the Finance Minister whereas Ajith Nivard Cabraal held the State Finance portfolio. S. R. Attygalle served as the Secretary to the Treasury.
The SLPP government increased the duty on a kilo of white sugar to Rs 50 in May 2020, a couple of months before the general election, and it was brought down to 25 cents, a few weeks after the last general election.
Media and Transport Minister Bandula Gunawardena’s Office told The Island that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) was yet to record a statement from the Minister as regards disclosure he made in Parliament on the sugar duty scam. Sources close to Bandula Gunawardena said that the former Trade Minister wanted to set the record straight. “The Minister couldn’t furnish a statement on Dec. 19, as sought by the CIABOC. However, CIABOC was told subsequently to record his statement,” sources said.
Addressing the Parliament, on Dec. 09, Minister Gunawardena said that in spite of him being the Trade Minister, he was not consulted at all and his strong opposition disregarded by President Rajapaksa when the Finance Ministry drastically reduced duty on imported sugar, without the benefit being passed onto the consumer.
Lawmaker Gunawardena claimed that inimical decisions were taken by ‘advisors’ at the expense of ministers who lacked authority.
CIABOC has so far recorded statements from over 30 persons in respect of the high profile investigation launched following complaints received from Samagi Jana Balavegaya MPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake and public interest litigation Attorney-at-Law Nagananda Kodituwakku. Those questioned included former Presidential Secretary Dr. P.B, Jayasundera.
The Island
learns that the CIABOC contemplated seeking a statement from former President Gotabaya Rajapaksa in this regard.
Sources said that a clarification was required as some of those who had been questioned over the issuance of the relevant gazette by the Finance Ministry claimed they received instructions from the President.
Former Chairman of the Committee on Public Finance, Anura Priyadarshana Yapa, is on record as having said that the reduction of duty on sugar didn’t benefit the consumers at all. Incumbent Cabinet ministers Vidura Wickremanayake and Nalin Fernando, before they received ministerial portfolios this year in their capacity as members of the Public Finance Committee, have criticized the sugar tax scam.
MP Mayantha Dissanayake told The Island that Minister Gunawardena has pointed the finger at former President Gotabaya Rajapaksa. Declaring that the CIABOC couldn’t under any circumstances leave the ex-President out of the investigation, MP Dissanayake emphasized that Bandula Gunawardena, too, should be held accountable for loss in revenue. How the then Trade Minister could distance himself from the sugar scam by blaming it on the President and those near and dear to that President, MP Dissanayake asked.
Since Minister Gunawardena’s revelation, the former President has left the country.
Responding to another query, MP Dissanayake said that the CIABOC, too, owed the public an explanation regarding, what he called, the inordinate delay in probing this case. “On behalf of the SJB youth movement, I lodged a complaint on Feb 01, 2021, and subsequently made inquiries regarding the investigation. Minister Gunawardena’s disclosure has revealed the culprits,” MP Dissanayake said.
Three newly appointed foreign Ambassadors to Sri Lanka presented credentials to President Anura Kumara Disanayake today (24) at the Presidential Secretariat.
The newly appointed Ambassadors represent France, State of Palestine and Nepal. Accordingly:
- His Excellency Remi Lambert has been appointed as the Ambassador of France
- His Excellency Ihab I.M. Khalil as the Ambassador of State of Palestine
- His Excellency Dr. Purna Bahadur Nepali as the Ambassador of Nepal
Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with Secretary to the President Dr. Nandika Sanath Kumanayake, were also present at the occasion.
State coffers suffered huge losses
A probe conducted by the Auditor General’s Department and the Parliamentary watchdog committee, COPA (Committee on Public Accounts) has revealed that a large number of luxury cars and SUVs have been imported with the help of forged documents that declared them as tractors.
During a recent COPA investigation into the Department of Motor Traffic (DMT), it was disclosed that the files related to the registration of those vehicles had gone missing.
COPA Chairman Aravinda Senaratne pointed out that BMWs and Mercedes-Benz cars had been declared as tractors. A total of 158 such cases had been specifically identified, the COPA said.
At the last COPA meeting, the DMT was instructed to provide details regarding those instances, but the Department has not yet done so. Some officials had already been identified and charged with the fraudulent registration of vehicles, Senaratne said.
“Wrong information about these vehicles has been entered deliberately. Their years of manufacture have been altered. According to our records, whenever an issue is raised, officials claim that the relevant files are missing,” Senaratne stated.
Current Commissioner General of the DMT, Nishantha Weerasinghe, said that those incidents had occurred before he assumed office.
Former DMT Commissioner General Sumith Alahakoon revealed that he had lodged two complaints with the CID. “When I took office, there were about 12 container loads of files flagged for errors. Out of those, 118 files were recovered by internal auditors and submitted to the CID. Thereafter, I was removed from my post,” he said.
The COPA Chairman accused the current DMT Commissioner General and his officials of failing to follow up on the complaints lodged with the CID by his predecessor.
When asked about action taken against the prime suspect in the fraud involving the luxury cars imported as tractors, the current Commissioner General said the suspect had been released due to insufficient evidence. A system analyst had been interdicted as investigators found that the database contained wrong information about vehicle imports.
COPA member MP Chandana Sooriyarachchi remarked that COPA investigations would be meaningless if officials sought to absolve themselves of responsibility simply by claiming that files had gone missing.
Sooriyarachchi said such fraudulent actions had cost the state coffers billions of rupees.The COPA Chairman said all aspects of the case would be thoroughly investigated.
by Saman Indrajith
SLMC General Secretary Nizam Kariapper, MP, yesterday (23) said that the National People’s Power (NPP) government owed an explanation as to why it continued to ignore indiscriminate Israeli attacks on Gaza.
Parliamentarian Kariapper pointed out that a statement, dated March 21, issued by Foreign Affairs, Foreign Employment and Tourism Ministry, while expressing deep concern over the deteriorating conditions in Gaza, requested all sides to avoid any action that would lead to further escalation of the situation.
The government statement conveniently failed to mention that Israel killed over 400 civilians and launched a fresh ground offensive in Gaza regardless of the ceasefire in place, lawmaker Kariapper said. The top SLMC official accused the NPP government of remaining silent on US approved slaughter of civilians taking place.
“The majority of victims in the Gaza war were women and children,” MP Kariapper said. If the NPP government lacked the strength to issue a statement that properly dealt with the ground situation, Sri Lanka should have refrained from commenting on the latest developments.
The SJB National List MP said that the Jewish State also launched operations in Yemen, Syria, and Lebanon as it sought to exploit the situation to its advantage.
MP Kariapper urged the government to take a principled stand on Israeli military action that so far claimed the lives of over 60,000 people since late 2023.
Israel launched large-scale offensive action after Hamas terrorists killed over 1,200 Israeli civilians in raids carried out in early Oct 2023. Hamas abducted a large number of Israelis and a section of them have been released so far.
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