PARLIAMENT

It was revealed at the Committee on Public Accounts held recently that the government had to pay an additional amount of Rs. 62,499,656 due to irregularities in the importation of DI pipes and fittings for the Eastern Province Water Development Project implemented in 2013 with the assistance of the Japan International Cooperation Agency (JAICA).

The Treasury had entrusted the task of importing the DI pipes and fittings required for the project to the National Water Supply and Drainage Board and the National Water Supply and Drainage Board had contracted it to M / S Access International (Pvt) Ltd.

Sri Lanka Customs has given Access International the opportunity to store the goods without paying taxes and has issued 08 CusDecs for this purpose.

Although the value of the goods in the warehouse was USD 5,139,621, the committee focused on issuing fake invoices and issuing fake information up to USD 6,350,364 when the goods were released from the warehouse. Accordingly, it was revealed that Access International was allowed to acquire an additional value of USD 1,207,098.

In addition, the COPA noted that the Sri Lanka Customs, which had investigated the submission of forged information and the misappropriation of foreign and local currency, had concluded claiming that it was not the fault of Access International.

The Director General of Customs said that a new committee has been appointed to look into the matter and its report could be submitted before the 1st of April.

Lanka Coal Company (Pvt) Ltd, which owns shares in 04 government agencies (Shipping Corporation 10%, Ceylon Electricity Board 60%, Sri Lanka Ports Authority 10%, and Treasury 20%) was established to supply the coal required for the Norochcholai Thermal Power Plant.

The Committee drew the attention for the underestimated VAT amount of nearly Rs. 187 million, which was levied on the company when importing coal in 2016 without disclosing the correct CIF value of the coal.

The committee revealed that underestimated VAT amounting to Rs. 205 million has been recovered as a penalty instead of being levied as an additional tax. The committee also noted that 50% of the fine or Rs. 102.5 million was paid as gifts to the officers, another 20% or Rs. 41 million was credited for the welfare of the customs officers and only Rs. 61.5 million was credited to the government revenue.

The Chairman of the Committee instructed the Secretary to the Treasury and Ministry of Finance to re-investigate the matter and submit a report to the Committee. The Committee also emphasized the need to amend the Customs Ordinance to prevent such irregularities.

State Ministers Dayasiri Jayasekara, Duminda Dissanayake, Lasantha Alagiyawanna, (Dr.) Sudarshani Fernandopulle and Members of Parliament Tissa Attanayake, Prof. Ranjith Bandara, (Dr.) Upul Galappaththi, Weerasumana Weerasinghe, The Auditor General, Secretary to the Treasury and Ministry of Finance S.R Attygalle and the Director General of Sri Lanka Customs along with the government officials were present at the meeting.