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SJB demands forensic audit on loss incurred from reduction of duty on imported sugar

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The Samagi Jana Balavegaya (SJB) has requested the Ministry of Finance to conduct a forensic audit on the loss incurred by the state due to reducing the import duty on sugar to Rs. 0.25 per kilo.

SJB MP Dr. Harsha de Silva urged a forensic audit to calculate the real loss since it was estimated that the state incurred a loss of Rs. 15.9 billion by what he called the strange exercise.

“The Ministry of Finance told the Parliamentary Committee on Public Accounts (COPA) this week that Rs. 15.9 billion in tax revenue has been lost”, he said.

Dr. De Silva said that the SJB had asked for a debate in Parliament on the matter.

Earlier this year, Chairman of the Committee on Public Finance Anura Priyadarshana Yapa instructed the Ministry of Finance officials to submit a report on the sugar tax revision.

In October 2020, the government reduced the import duty on a kilo of sugar from Rs. 50 to 25 cents stating that it wanted to reduce the retail price of sugar in the market.

However, sugar importers had stocked about 90,000 metric tons of sugar they had imported after paying Rs. 50 per kilo by way of import duty.

The government on 27 October increased the tax imposed on a kilo of sugar to Rs. 40. However, according to the Special commodity levy act, a levy increase come into force a month later.

Thus, the amended duty increase was not enforced between October 13 and November 13. During this period, one sugar importer was able to import 100,000 MT of sugar by paying only 25 cents as duty per kilo. Sathosa had also purchased sugar from the importer at over Rs. 125 a kilo. The Opposition alleges the importer made a significant profit at the expense of the state. (RK.)



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Opposition holds NPP Cabinet responsible for coal scam, three times bigger than bond fraud

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Prof. G. L. Peiris

The Opposition yesterday called for the entire Cabinet-of-Ministers to accept responsibility for the coal scam. Addressing the media at the Flower Road Office of UNP leader Ranil Wickremesinghe, former Foreign Minister Prof. G. L. Peiris emphasised that Energy Minister Kumara Jayakody’s resignation, in the wake of the damning report issued by the National Audit Office (NAO), has now implicated the entire Cabinet-of-Ministers.

Prof. Peiris asserted that Jayakody, who had been indicted in the Colombo High Court over alleged corruption, during the Yahapalana administration, stepped down after the NPP failed to suppress the truth on the coal scam.

The ex-Minister declared that Jayakody’s resignation, the first since the formation of new government, with a super majority in Parliament, was a devastating setback for the current dispensation.

The internationally recognised legal scholar said that a future government would move courts against the entire NPP Cabinet. Referring to the NAO report submitted to Parliament, Prof. Peiris emphasised that there was absolutely no ambiguity regards allegations directed at the Energy Ministry. The NAO report proved that the Indian company, Trident Champhar, that won the major contract, didn’t even have the required registration.

Prof. Peiris said that the coal scam was three times bigger than the Treasury bond scams, perpetrated during the Yahapalana time (SF)

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Case against Yoshitha and Daisy Forrest postponed

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The Colombo High Court yesterday ordered that the case, filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, and his grand-aunt Daisy Forrest Wickramasinghe, be recalled on June 10.

The case was taken up before High Court Judge Rashmi Singappuli.

At the hearing, State Counsel informed the court that a related case, on similar charges, had been filed before High Court No. 08. The court was further informed that a revised indictment has been directed to be filed in that case, necessitating the submission of a revised indictment in the present case as well.

State Counsel requested time to report on the progress of those proceedings.

Accordingly, the judge ordered that the case be called on June 10 and directed that progress be reported on that date.

The case pertains to three indictments filed by the Attorney General alleging that between March 31, 2009, and December 12, 2013, the accused had committed an offence under the Prevention of Money Laundering Act by depositing over Rs. 59 million in three private banks, the source of which could not be explained.

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Three-judge bench rejects request by ex-IGP Pujith

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 A three-judge bench of the Colombo Special High Court yesterday rejected a request by former Inspector General of Police (IGP) Pujith Jayasundera to introduce additional facts to a statement he had previously made from the dock.

Jayasundera is an accused in the case filed over alleged criminal negligence in failing to prevent the 2019 Easter Sunday terrorist attacks, despite prior intelligence warnings.

The order was delivered by the bench, presided over by Justice Priyantha Liyanage.

Meanwhile, retired Senior Deputy Inspector General (SDIG) Nandana Munasinghe and Deputy Inspector General (DIG) in charge of the Eastern Province, Waruna Jayasundera, appeared before court as defence witnesses.

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