US $ 715 million siphoned off on false import documents

Colombo, July 22 (Daily Mirror) - In what appeared to be a massive financial irregularity, the police informed the Committee on Public Finance (CoPF) yesterday that approximately US$ 715 million (Rs. 240 billion) , is likely to have been earned through criminal activities such as drug trafficking, had been remitted on false import documents, an official said yesterday.

The revelation was made by Senior DIG Asanga Karawita who leads the investigations into allegations made by President Anura Kumara Dissanayake that as much as US$ 1 billion had been sent out of the country as advances for imports. The President made the allegation in Parliament last month.

The money was paid via Telegraphic Transfers (TT), but no corresponding goods arrived in return, according to the President.

Later, Parliament’s Committee on Public Finance (CoPF) questioned officials of the Central Bank and Sri Lanka Customs to verify details presented to the House by the President.

The committee met again yesterday and found multiple lapses among banks, Customs and the Department of Import and Export at the Finance Ministry.

Its Chairman, MP Dr. Harsha de Silva, said the committee had a detailed discussion with the Finance Ministry, the Central Bank and the Police, and found multiple lapses among banks, Customs and the Department of Import and Export at the Ministry in reconciling remittances with related imports.

The Police updated the Committee on the progress of criminal investigations, he said.

“It was most disappointing to find that reporting requirements with respect to outward remittances from banks — both state and private — were not being strictly adhered to and that this contributed to fraudsters exploiting gaps in regulation. We approved an amendment to the existing law to include yet another set of information by registering with the Customs to become an ‘eligible’ importer. However, the general view of the committee was not to impose further regulations on bona fide importers but to strengthen the implementation of existing regulations so that rogues can be caught, and thus reconsider the need for additional registration requirements in due course,” he said.

A directive was issued to form a multi-agency committee to submit a comprehensive report on the matter within two months, he said.