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SEC received over Rs 1 bn for unfinished Inland Revenue building project – COPA

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…building rented at over 5 mn not used

By Shamindra Ferdinando

The Committee on Public Accounts (COPA) has questioned the failure on the part of the Inland Revenue Department to use a building at Colpetty rented at a cost of Rs.5.08 mn.

According to the first COPA report handed over to Parliament, on July 20, by the watchdog’s Chairman Prof. Tissa Vitarana, the Inland Revenue Department abandoned plans to set up ‘Tax Services Division’ due to strong objections by employees.

COPA comprises Prof. Vitarana, Udaya Gammanpila, Duminda Dissanayake, Dayasiri Jayasekera, Lasantha Alagiyawanna, Dr. Mrs Sudarshini Fernandopulle, Shehan Semasinghe, Prasanna Ranaweera, Tissa Attanayake, Harin Fernando, Niroshan Perera, Faizal Cassim, Ashok Abeysinghe, Buddhika Pathirana, Kader Masthan, Mohammed Muzammil, Sivagnanam Shritharan, Dr. Upul Galappalaththi, B.Y.G. Ratnasekera, Weerasumana Weerasinghe, Prof. Ranjith Bandara and Dr. Harini Amarasuriya.

In response to COPA inquiries, the Inland Revenue Department has claimed that the building rented to store documents as part of the expansion of the Tax Services Division couldn’t be utilized for want of employees’ cooperation.

Expressing serious concerns over the development, COPA termed the transaction misuse of public funds.

The report dealt with a spate of serious shortcomings, misappropriation of public funds and perhaps some sections of the Inland Revenue Department, Sri Lanka Customs and Excise Department colluding with interested parties.

The report also exposed the utterly irresponsible conduct of the State Engineering Corporation (SEC) as regards a finalized agreement to build a 9 storeyed vehicle park at a cost of Rs 1,430.5 mn for the Inland Revenue. Of that amount, Rs 1,399.7 mn had been paid to the SEC by Dec 31, 2018 without paying attention to progress. The report revealed that the SEC had awarded all work to private sub-contractors although the state enterprise accepted the contract.

The Inland Revenue has taken up the position that a state institution couldn’t initiate legal action for violating an agreement. However, the COPA hasn’t made remedial measures to address the issue at hand. Prof. Vitarana told The Island that the matter needs careful consideration particularly at a time the country was experiencing a severe financial crisis.

The senior LSSPer who received SLPP National List appointment said that since the last parliamentary election the COPA and two other parliamentary watchdogs- COPE (Committee on Public Enterprises) and COPF (Committee on Public Finance) had raised a number of pertinent questions.  The Parliament should take tangible measures to rectify inadequacies in the revenue collection systems, curb waste, corruption and irregularities and also negligence, the veteran politician stressed.

The COPA report on the basis of submissions made those responsible for revenue collection acknowledge further complications caused by the raging Covid-19 epidemic. However, closer scrutiny of the report revealed that the entire tax collection system had been in turmoil even before the eruption of the epidemic here in early 2020.

COPA pointed out that in spite of the setting up of a special division in terms of the Default Taxes Payment (Special Provisions) Act No 16 of 2010, recovery of taxes had been unsatisfactory. The watchdog has observed by December 2018, eight years after the setting up of the special division arrears in taxes and fines amounting to Rs 32.5 bn were yet to be collected. Referring to Rs 32.5 bn, COPA largely faulted government institutions for the non –payment of taxes while quoting the relevant Inland Revenue official as having said that an Independent Advisory Committee established to deal with recovery of defaulted taxes directed that defaulters given an opportunity to pay arrears in installments.

Former COPA Chairman Lasantha Alagiyawanna admitted that in spite of disclosures made by not only COPA but other parliamentary watchdogs as well over a period of time corrective measures hadn’t been taken. According to the SLFPer, relevant ministers were answerable for whatever the shortcomings and discrepancies taking place under their watch.



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Discussion on Sri Lanka Customs’ contribution for National Export Development Plan

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A discussion on the modernisation initiatives required within the Sri Lanka Customs and measures to encourage exporters in support of implementing the National Export Development Plan (NEDP) 2026–2030 was held on Wednesday (17)  morning at the Presidential Secretariat under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

The meeting, organised by the Revenue Administration Reform and Modernization Bureau established under the Presidential Secretariat, focused extensively on the modernisation measures required within Sri Lanka Customs to facilitate the expansion of exports.

During the discussion, the Secretary to the President instructed Sri Lanka Customs to enhance the capacity, facilities and modernisation of the Export Facilitation Centre, where export containers are inspected, in order to create a more efficient and exporter-friendly environment.

Attention was also drawn to developing a programme aimed at encouraging exporters across the country to enter the export sector. The Secretary to the President further emphasised the need to review the Temporary Import for Export Processing (TIEP) scheme currently operated by the Customs Industrial Facilitation Division and to introduce a programme to support small and medium-sized enterprises (SMEs) that have not yet engaged in export activities.

The meeting also explored the possibility of decentralising customs operations to support the expansion of the export sector, with particular attention given to establishing a Customs Export Centre in Jaffna.

Discussions were also held on removing barriers affecting exports conducted through e-commerce platforms. It was decided to hold further discussions with the Department of Posts on measures that could be taken jointly to streamline these processes.

Participants also discussed introducing digital systems to expedite document processing, thereby reducing both, time and costs, as well as implementing a risk-based assessment mechanism that would provide greater facilitation for low-risk exporters.

It was further decided that Sri Lanka Customs, the Sri Lanka Export Development Board (EDB) and other relevant institutions would meet monthly under the leadership of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat to review progress, identify challenges faced by exporters and discuss appropriate solutions.

The National Export Development Plan has been formulated in line with the national vision, “A Thriving Nation – A Beautiful Life”, with the objective of enhancing Sri Lanka’s export competitiveness and achieving an ambitious yet realistic export revenue target of USD 36 billion by 2030.

Director General of Customs Wimal Liyanagama, Chairman of the Sri Lanka Export Development Board (EDB) Mangala Wijesinghe, Additional Directors General of Sri Lanka Customs T. Loganathan and L.K.S.D.K. Arewatta, Director of the Sri Lanka Export Development Board Dr. Sanjeewa Rathnasekara, Director of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat W.L.C. Thilakasiri and senior officials from Sri Lanka Customs and the Sri Lanka Export Development Board were also present.

[PMD]

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Military held land: Govt. trying to maintain balance between security and civilian needs

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Deputy Defence Minister Maj. Gen. Jayasekera receiving a field briefing during a recent visit to the Jaffna peninsula (pic courtesy MoD).

The NPP government is trying to maintain a balance between continuing demands for releasing north-east land held by the military and post-war security requirements, says Deputy Defence Minister Major General Aruna Jayasekera (Retd), who has undertaken a series of visits to the northern and eastern provinces in the recent past to explore ways and means of releasing the land, without compromising national security requirements.

Since the armed forces brought the war to a successful conclusion in May, 2009, releasing of both privately- and state-owned land began cautiously in October, 2009, and by now over 90 percent of both categories have been released. At the height of the war, before the launch of Eelam War IV, in August 2006, Jaffna peninsula had the largest concentration of troops assigned to four Divisions.

In the first week of June, Deputy Minister Jayasekera visited the Trincomalee District to ascertain the situation. The Defence Ministry said that the Deputy Minister had assessed the current status of such lands and received briefings from senior military officers and relevant officials on security and administrative aspects regarding the properties.

Following the field inspection, the Deputy Minister chaired a meeting at the Governor’s Secretariat Office where the discussion focused on what the Defence Ministry called a balanced and practical approach to address land-related issues, protect the livelihoods of the people, and ensure that national security requirements were properly managed.

Jayasekera, with a career spanning well over three decades, retired in November, 2019, after having last served as the Eastern Commander for about a year.

During his June visit, the Deputy Minister visited various security forces establishments, including the 22 Infantry Division.

A senior retired military official said that those who had been demanding that all security forces held land, both state- and privately-owned, be released, have conveniently forgotten that this was made possible due to the eradication of the LTTE.

The Deputy Defence Minister conducted a series of field visits in the Jaffna and Wanni regions to assess the security situation and operational commitments. According to the Defence Ministry, the Deputy Minister addressed senior tri forces personnel at the Security Forces Headquarters – Jaffna (SFHQ-J) and the Security Forces Headquarters – Wanni (SFHQ-Wanni).

The Deputy Minister chaired civil-military coordination meetings in the Mannar and Jaffna districts to the ongoing land ownership issues, fostering socio economic growth, and streamlining local infrastructure layout in close cooperation with the regional administrative mechanism. The Ministry said that the Deputy Minister inspected agricultural zones, private residences and public common areas, presently placed within the operational infrastructure of the Sri Lanka Navy across several locations, in Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimune.

Members of Parliament for the Vanni Electoral District, Selvam Adaikalanathan, Kader Masthan, Thurairasa Ravikaran and the District Secretary for Mannar were also present at the meeting where matters related to socio economic grievances, local infrastructure demands, and land rights of the local residents were central topic in the agenda.

The Deputy Minister of Defence chaired a second meeting at the Governor’s Office in Jaffna where the main focus was existing land issues in the districts of Vavuniya, Mannar, Mullaitivu, Kilinochchi, and Jaffna.

The Jaffna proceedings were co-chaired by the Minister of Fisheries, Aquatic and Ocean Resources and Chairman of the District Coordinating Committee for the Jaffna and Kilinochchi Districts Ramalingam Chandrasekar and Deputy Minister of Co-operative Development Upali Samarasinghe.

The Defence Ministry said that stability depended on striking an optimal balance between prioritising national security obligations and resolving outstanding issues related to both state owned and privately used lands. “We are implementing a transparent mechanism to swiftly transition designated lands back into the hands of local communities for housing, fishing, and agriculture.”

The participation of the Commander of the Army and the Commander of the Navy underscored the importance of the discussions held in the north.

In the Mannar region the focus was on lands, presently used by the Navy, in the areas of Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimunai.

Authoritative sources said that since the end of the war, the military had given up held areas and what remained occupied were essential for security purposes. The depletion of the area under direct control should be examined taking into consideration gradual overall reduction of combined security forces strength over the years. At the end of the war, the Army had approximately 205,000 officers and men, both regular and volunteer. That figure has been reduced to 150,000 to 160,000. In line with the government thinking the Army strength would be brought down to 100,000 by 2030, a plan first announced by President Ranil Wickremesinghe.

By Shamindra Ferdinando

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Yoshitha granted bail, travel ban imposed

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Ex-Navy officer Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, being taken to the Colombo Chief Magistrate's court yesterday.

Colombo Chief Magistrate Lahiru de Silva yesterday granted bail to Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, on three sureties of Rs. 5 million each, and imposed an overseas travel ban.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested Yoshitha yesterday morning when he called over to make a statement regarding an ongoing investigation into his recruitment to the Sri Lanka Navy and training at the UK Royal Naval Academy.

CIABOC said that the arrest had been made in connection with an investigation into the 2006 recruitment of cadet officers to the executive branch of the Sri Lanka Navy.

It has been alleged that individuals were recruited without meeting the required qualifications and state funds were used outside established procedures for their training at the Royal Naval Academy in the UK.

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