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SJB alleges maize tax fraud, claims SLPP, SLFP benefited from sugar scam

By Shamindra Ferdinando
SJB MP Rohini Kaviratne has alleged that a key figure in the Agriculture Ministry and about ten businessmen have benefited from the lowering of import duty on maize. The Matale District MP said so in Parliament on Wednesday (23) responding to State Finance Minister Ranjith Siyambalapitiya’s recent announcement that import duty on a kilo of maize had been reduced from Rs. 75 to Rs. 25 to bring down the cost of animal feed. Despite an initial decision to reduce the duty on maize to Rs 50 a kilo, it had been reduced to Rs 25, she said, claiming that the revenue losses could be Rs. 5 bn.
Referring to the sugar tax scam carried out by a couple of weeks after the SLPP’s victory at the last general election conducted in August 2020, MP Kaviratne said the powers that be working hand in glove with major importers had manipulated import duties on food imports.
The Finance Ministry issued a special gazette notification on Oct 13, 2020 to bring down Rs 50 tax on a kilo of imported white sugar to 25 cents. A special examination carried out by National Audit Office (NAO) revealed that the Treasury was deprived of Rs 16 bn within four months (Oct 14, 2020 to Feb. 08, 2021).
Comparing the sugar tax scam with the recent cut in maize tax, MP Kaviratne alleged that massive profits accrued through the 2020 rip-off was used to pay for SLPP election campaigns. The MP was referring to last presidential and parliamentary polls in Nov 2019 and Aug 2020, respectively.
The NAO has declared that Pyramid Wilmar (Pvt) Ltd–the private company accused of profiteering from the sugar tax cut imported 1,222 percent more sugar than usual between October 2020 and February 2021, but did not pass the advantage to consumers. This is 45 percent of the total quantity imported by all importers (which was 277,713MT).
MP Kaviratne said that the coconut oil scam too had deprived the Treasury of as much as Rs 3 bn.
Commenting further on the reductn of import duty on maize, Kaviratne said maize cultivators in Moneragala, Hambantota, Matale, Anuradhapura, Polonnaruwa, Mahiyanganaya and Girandurukotte areas would suffer due to the government decision. According to her, those responsible for the maize tax scam were planning to reduce the tax on the import of green gram and orid.
Kaviratne claimed that funds had also been utilised for the SLFP convention at a Colombo venue though the original plan was to have it in party General Secretary Dayasiri Jayasekera’s electorate in the Kurunegala District.
MP Kaviratne also alleged that an organized project was underway targeting maize cultivators. The MP claimed forms requesting government assistance had been distributed by interested parties, including some SLPP MPs representing the SLFP though the relevant government agencies weren’t aware. The MP alleged that MP Duminda Dissanayake and MP Mahinda Amaraweera were responsible for the ‘operations’ in Anuradhapura and Hambantota, respectively.
The SJB spokesperson alleged that the SLFP, the major beneficiary of the maize tax scam, had launched a propaganda campaign eyeing future elections while the farmer community was plunged into crisis.
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The Prime Minister made these remarks while addressing public gatherings held in the areas of Mirigama, Minuwangoda, and Katana in the Gampaha District.
Addressing the gatherings, Prime Minister stated:
“From birth to death, all the aspects of life of a person are handled by local government institutions. However, to this day, these institutions lack proper systems even to provide the people with basic facilities.
We are committed to working with a proper system, free of fraud and corruption, and managing every rupee carefully and attentively. We are identifying the needs of people and implementing projects under a systematic plan to develop rural sectors.
You elect fellow members who stand firmly against fraud and corruption through two decisive elections. First, you elect Anura Kumara as President, a leader committed to fighting corruption. Then, in the parliamentary election, you choose a group of qualified individuals who are equally dedicated to this cause to represent you in Parliament.
To ensure that the funds allocated for rural development reach the people, the local government institutions which are the closest to the villagers must also be clean and transparent. That is why this election is so important to us.
The people and the villages come to experience our corruption-free political culture through local government institutions. These institutions must properly implement, monitor, and evaluate the development projects allocated to the rural sector. The era of awarding contracts for such projects to political cronies must end.
Although early childhood development is a crucial part of education, there has never been a proper system for it. We are now establishing such a system. Starting in May, teacher training for the modern education which is being introduced will begin. We have a comprehensive plan for development across all sectors.
The Ministry of Education has received billions worth of projects, but there is no proper implementation process. For example, 1,500 smart boards were brought for smart classrooms, but the Secretary to the Ministry has not implemented a system to distribute them to schools. Teachers have not been trained to use them. Teacher training institutes still follow outdated curriculum. This will be corrected through the new education reforms,
In order to deliver all these benefits to the rural sector efficiently, it is essential to elect the right people for the right purposes. Therefore, in the upcoming local government elections, Prime Minister Dr. Harini Amarasuriya urged the public to vote for the candidates who are free from fraud and corruption presented by the National People’s Power (NPP).”
The event was attended by Parliament Chief Organizer of the ruling party Dharmapriya Wijesinghe, Members of Parliament Ruwanthilaka Jayakody and Chaminda Lalith Kumara, along with several local government candidates and the residents of the area.
[Prime Minister’s Media Division]
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