28 March, 2024

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Duty Free Vehicles To Politicos And The Billions Rupee Scam

By Nagananda Kodituwakku

Nagananda Kodituwakku

Nagananda Kodituwakku

Dishonest politicians should be held accountable for unjust enrichment of taxpayers’ money in billions 

The Secretary to the Ministry of Local Government and Provincial Councils Ministry Secretary R A A K Ranawaka in a press release to the media states that the Government has cleared vehicle permits to the value of USD 3.2 million to be given to newly elected Western and Southern Provincial Council members and the newly elected members of both Councils will receive vehicle permits to the value of USD 50,000 each. He further states that some provincial council members have already sold their permits but it is not illegal.

It seems that those holding high public offices have disregarded the constitutional oath given below (fourth schedule to the Constitution), which require every person elected to any public office to take, before resuming the performance of the duties of any public office.

“I ……………………………………………………. do solemnly declare and affirm / swear that I will faithfully perform the duties and discharge the functions of the office of …………………………………. in accordance with the Constitution of the Democratic Socialist Republic of Sri Lanka and the law, and that I will be faithful to the Republic of Sri Lanka and that I will to the best of my ability uphold and defend the Constitution of the Democratic Socialist Republic of Sri Lanka.”

Exemption of levies on duty free cars

The Customs Ordinance as amended in 1988, provides (Section 19A) that the Minister of Finance may, if he deems it expedient in the public interest so to do, by Order published in the Gazette exempt any goods imported by, or consigned to, any person specified in the Order from the whole or any part of the duties of customs leviable thereon, subject to such conditions (to be fulfilled before or after clearance) as may be specified in the Order.

This provision of law also provides that where any goods specified in an Order made under subsection are subsequently sold or disposed of contrary to the conditions of such Order, such goods shall be liable to the same duty of customs as may by law be levied on like goods which are subject to duties of customs and the importer or person by whom or on whose behalf the goods are sold or disposed of shall prior to such sale or disposal obtain the permission of the Director-General and pay the duties payable on such goods at the time of such sale or disposal to the Director-General. Any goods sold or disposed of in contravention of such section shall be liable to be forfeited.

Licence Conditions later removed for unjust enrichment 

Originally all permits issued to import vehicles duty free were subject to stringent conditions, under which sale, transfer, mortgage or disposal of a vehicle imported on a duty free permit was absolutely prohibited by law and any such vehicle were liable to be forfeited by the Director General of Customs.

However, further to seizure of several such vehicles unlawfully sold or disposed of by the Customs, the government itself undermined the rule of law that permitted such imports, with which the stringent conditions that made the abuse of the duty free permit scheme a punishable offence, were completely done away with, facilitating the deceitful politicians for unjust enrichment. Yet, the law which permitted duty free permits remained unchanged, which permitted the Minister to issue duty free permits only if the Minister considered it expedient in the public interest so to do, to exempt payment of levies on such vehicles.

Serving a public interest only a fraud 

Now the government claims that sale of permits are not illegal, but the fact remains that any such abuse clearly violates the primary purpose for which the permits were allowed, as the issuance of permits were considered expedient or beneficial in the public interest. Therefore, it is rather clear that the abuse of the permit system and selling permits in the open market for several million rupees, clearly amount to an act of misappropriation of public funds that also amounts to an actionable wrong of unjust enrichment in the absence of any legal basis for such enrichment

Billions of taxpayers’ money siphoned

The concept of unjust enrichment is based upon the Roman legal maxim “no one should be benefited at another’s expense” (nemo locupletari potest aliena iactura or nemo locupletari debet cum aliena iactura). Hence, in all cases of abuse of the duty free permit system, which clearly permits unjust enrichment at the expense of the taxpayer, regardless of liability for wrongdoing, the people of this country, who enjoy the sovereignty of Sri Lanka, have every right to sue the Minister in charge of the subject of Finance, who is responsible for opening the floodgates to politicians to defraud the taxpayers’ money in billions as well as those who have abused the duty free permit system for unjust enrichment with no legal basis whatsoever, as claims in unjust enrichment do not depend upon proof of any wrong.

Since the government openly condone this abuse, sans any accountability, it is up to the right thinking people of this country and the social groups that fight for social justice to take the right initiative to stop this abuse, which cost billions of taxpayers’ money in regular basis.

*Nagananda Kodituwakku – Attorney-at-Law

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Latest comments

  • 3
    0

    Is the opposition taking a nap!!!!!

    • 2
      0

      Sri Lanka’s POLITICAL CULTURE is ROTTEN TO THE CORE. This is true of the govt and OPPOSITION in equal measure. Politicians – the so called “law makers” most of who are UNEDUCATED criminals and looters of the public wealth (like the MAahinda Jarapassa family) and the police and military who are the so-called guardians of the law, are the biggers LAW BREAKERS.

      The name of the corrupt regime’s game is MONEY POLITICS. Sinhalaya Modayas need POLITICAL AND VOTER EDUCATION to stop voting for corrupt and criminal politicians like the Rajapaksa brothers and their cabinet of corrupt clowns, from Sirisena the so callede minister of Health who has been bribed by Phama companies to sink the National Drugs Policy Bill to morons like Mervin Silva and murderers like Duminda Silva.

    • 2
      0

      Opposition? What opposition? ‘Opposition’ is just another name for the waiting room till the time is ripe to accept the inevitable MR invitation. Duty Free perks are a small price to pay to keep the troops happy while the big boys go for the mega commissions. Nice work if you can get it, and if you get it show me how.

  • 2
    0

    Practically all Sri lankan politicians are crooks who enrich themselves while the poor agrarian worker and housemaids in the barbaric Arab states toil in miserable conditions to earn Sri Lanka foreign currency. Same crap all over South Asia.

  • 3
    0

    Unfortunately there is not a single independent organisation in this country to take legal action against these politicians for breaking the law. Although these are spotlighted in the media that is not enough. No one has the guts to challenge these people in courts.

    • 2
      0

      Legal action against politicians for breaking the law?
      What Law and what court when there is a CJ like Mohan Pieris who graces the Presidential Medamulana breakfast table for Sinhala Avurudu celebrations!

  • 3
    0

    Where do you live Nagananda? I hope not in Sri Lanka. If you are keep a look out for the white vans.

    The Rajapaksa despots can’t stand anyone questioning their errant ways.

    • 3
      0

      He is a great lawyer, as I read somewhere, he lives not in SL.

      If lawyres in the country would have reacted with same energies,no doubt we the people would not have been fallen into the current pit – not being able to see any wayout. Buduma budu saranai apita. those living in the country :(

  • 2
    0

    This in nothing compared to the super luxury racing cars Namal Rajapakse imported for Colombo Night Races costing 100 Million Rupees in Foreign Exchange.

    http://www.colombopage.com/archive_12B/Dec16_1355670411JR.php

    The 19 vehicles that were imported include two Lamborghini Gallardos, a Porsche 911 GT3 (3,900 CC), an Aston Martin N24 (3,500 CC), a Nissan Fairlady (3,500 CC), a Honda Civic (3,500 CC) and 13 Etios motor racing cars (one 1,197 CC vehicle and 12 1,496 CC vehicles).

    It says…….Sri Lankan government lost Rs. 200 million in tax revenue importing racing cars for Night Races – Marxist party
    Sun, Dec 16, 2012, 08:36 pm SL Time, ColomboPage News Desk, Sri Lanka.

    Asia’s Miracle Rajapakse style.

    • 1
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      Jayantha,
      You should have visited the lamborghini showroom in Borella. Among three beautiful cars there is a murcielago as well. Why not, if there are people to buy it. A lot of new and expensive vehicles ply along resurfaced roads of Colombo and suburb these days. You can do us a favour; follow them and give taxman address where they’re parked.

      A new state of the art bridge next to existing new Kalani bridge is to be completed by the end of 2016. I see reclaiming work for the new offshore city is also progressing speedly. Sri Lanka must be awash with cash.

  • 2
    0

    Should there ever be an opposition govt elected, its priority must be to waive the immunity of the past Presidents, so as to prosecute them to the full extent of the law. Priority should be given in inquiring into wasteful spending of public funds, utilizing of public funds for personal benefit, corruption, tax evasion, etc. Public officials such as the Sec. Ministry of Finance, Governor Central Bank, etc assisting in such fraud must too be investigated and prosecuted. There are many officials within these Ministries and Dept who know the depth of these corruption and will co-operate in such an investigation. Sarath Fonseka must head the investigation to ensure the matter gets addressed properly to the complete satisfaction of the public.

  • 2
    0

    You’re an attorney-at-law. So get together with the like minded fellows and sue the bogus and fraudulent politicians in a court of law. Open the real hornet’s nest.

    • 1
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      Banda

      “You’re an attorney-at-law. So get together with the like minded fellows and sue the bogus and fraudulent politicians in a court of law. Open the real hornet’s nest.”

      Advise him on how best to deal with Sri Lanka’s de facto chief justice mudslinging laptop journalists and white vans.

  • 2
    0

    We, the revenue protection officers in the customs, who are concerned about his abuse, have taken right action to stop this abuse in many occasions.

    For instance just three months ago the one of the best officers in the service, Mr Athula Lankadeva, (director fraud investigations) took action against LOLC and LB Finance as these companies had abused the permit scheme to import over 200 high valued vehicles defrauding public funds of over a billion of rupees. That time the conditioned prohibiting sale of permits was in place.

    What happened to this case is now in the public domain. P B Jayasundara, once found guilty for abuse of office by the Supreme Court, immediately removed the conditions prohibiting sale of permits and making the disposal od permits not an offence. In fact this was done with restroective effect and releasing all the vehicles seized and also removing MR Lankadeva from all was removed from all enforcement duties with immediate effect.

    This is the financial discipline we have in this country, that Jayasundara talk very high about. If this allegation is untrue We invite Jayasundara to challenge this, and we are prepared to reveal full details about this massive fraud with his unlawful directive given to protect the cheats published.

    • 2
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      mr Kaluthantri, pls publish more about this as this finance companies with support from top are making exorbitant profits by f leeching the poor public with all their hidden charges

    • 2
      0

      Kaluthantri,

      Please send all the details of this fraud to the Internet and to CW Lawyers association.

      Also keep them as future reference to sue them in future.

  • 2
    0

    Recently when media minister was challenged for ill gotten wealth he justified his wealth saying that he made over 60 millions by selling his duty free permits. This is the five star democracy we have in this country. This is the government that had audacity to remove the Chief Justice, after she was framed for none declaration of her assets.

  • 1
    0

    We demand the JVP members in the pArliament, provincial councils and local councils to declare in public if they are clean and not abuse this fraudulent practice of cheating public funds for unjust enrichment.

  • 2
    0

    In this country there is nothing called accountability in politics. Those who are in politics (both ruling party and opposition) are equally corrupt and accumulating of wealth in whatever means has become the order of the day.

  • 1
    0

    We invite Anura Kumara Dissanayake and his group to come clean. They talk about clean politics.

    People are very anxious to know if the JVP too is involved in this massive fraud.

    • 0
      1

      Priyadeva,
      What clean politics for JVP? We are not born again people. We who live in Sri Lanka during the beshanaya days can remember very well how JVP thugs shot the ones that cast their vote first at first PC election, how they shut our factories with mere chit, how they took my ID card, how they punished people for being UNPer and etc.

      Anura Kumara talks as if he is a born again man.

  • 0
    0

    The end is at hand

  • 2
    0

    This is a shame. This is a county where customs duty on a. Cheapest Maruti petrol car of 1000cc is over 2 million. And where even a three wheeler is charged for over 300,000.00 as customs duty whilst all luxurious vehicles are exempted from customs duties. This is a great robbery of public funds having deceived the whole nation. This is the country that talk about the accountability to the international community.

    Professor GL Peiris, where are you. How much money you earned by selling your permits. We know now the leading leading car importers buy these permits in public and importing cars duty free. and keep them in the port until finds a buyer.

    Jayasundara, we demand you to make public statement on this colossal revenue fraud.

    • 2
      0

      Also certain government employees and ministers receive a reduced duty or duty free permit every 3 years to import a car. Ofcourse these beneficiaries of government pork sell their permits or the cars they import for a profit.

      This permit nonsense started with UNP and Mahinda made it much worse by handing out a new permit every 3 years.

  • 1
    0

    We, the minority in the customs service that always condemn corrupt practices can reveal to the public with confidence that in this country customs Levy on a diesel driven vehicle is 357%.

    We say with certainty that there is not even a single diesel driven luxury vehicle on the road in this country imported on payment of tax.

  • 0
    2

    What’s wrong in selling the permits. The government has withdrawn the conditions prohibiting the sale of permit to recover the money spent in the election campaign. I think is absolutely OK.

    • 0
      1

      Today, most people in Sri Lanka have some kind of a vehicle. Poor has three wheelers and motor bikes. Middle Class has old cars or small cars. The rich has all types of vehicles. In a sense, Sri Lanka has become prosperous and people are enjoying some luxuries as never before.

      What is appalling however is those who can afford bigger and luxury vehicles pay less or no tax while those who are compelled to buy small vehicles have to pay very high taxes. I think many small vehicle buyers are not aware about this scam. When they come to know about it, the government will be in serious trouble.

      For a long time, vehicles were imported only on permits. JRJ started tax free permits for MPs. It was not meant for sale. But many MPs made fantastic money on underhand sales. When high value permits were issued with reduced taxes to various categories, everyone started selling their permits openly. Going rate for a full option Montero is under ten million rupees including the permit which is little above the price in the UK. Needless to say, permit prices crashed.

      I think it’s about time the government do away with permits all together. As a tactic to reach that goal, it is not wrong allowing to sell permits openly. Indeed, it made what was done illegally, legal. What’s wrong is the method of issuance of permits.

      • 1
        0

        Banda,

        Every good thing in Sri Lanka was exploited by Rajapakses including Buddhism to their advantage.

        There’s nothing else to exploite.

        These gundus will not go far when Internatgional community rains down and the country faces severe debt.

        JVP has to bring this Duty free permit Fraud and scam to public.

  • 1
    0

    Today, entire political culture is absolutely corrupt. Executive Legislature and Judiciary are equally corrupt.

    Only cronies and stooges appointed to the high profile public office in all organs of the government.

    All are required to turn a blind eye to these wrongdoing and to make hay whilst sun shine.

  • 2
    0

    Leader of Opposition, Ranil Wickramasinghe,

    Cay you say to the people that you and your men are not a party to this scam.

    • 0
      0

      A lot of us have joined the permit scam someway at sometime or the other. Some to sell the permit, some to buy. Is it a tax free gift by the government to a selected lot (permit sellers). For buyers it’s an added cost forced on them. And that’s why I say permits should be scrapped.

  • 2
    0

    President Rajapakse,

    Your regime always say that there is an accountability system in place against all forms of wrongdoing.

    This is a great opportunity for you to demonstrate the world that your government do not condone corruption.

    We demand you to show your will to fight corruption by removing every person involved in this massive abuse from public office if you want the right thinking people to believe that there is a good governance in place in Sri Lanka

  • 2
    0

    DGC, JAGATH WIJEWEERA is equally corrupt and very worried about his office.

    That is why he removed Mr Lankadeva, Director of Customs (fraud investigations) from all enforcement duties, when he took action against the LB Finance and LOLC for abuse of the duty free vehicle permits.

  • 0
    0

    As long as the ADMINISTRATIVE SYSTEM and the politics are interconnected this corruption problem can not be solved. Administration should be separated from Politics.

    Sri Lanka has a bigger problem.

    That is the 13th amendment which allows President to REWARD Provincial Councillors who are aligned to him in every province. President treats them with duty free LUXURY-CAR permits. With that Ill-gotten money, they go for votes.

    That is why the Opposition is silent.

  • 0
    0

    All this because of the penal tax rates imposed on vehicle imports.

  • 2
    0

    Do you know how many in the Judiciary have sold their permits and made millions. Just ask Mohan Peiris

  • 1
    0

    I think it is unfair to blame DGC Mr Jagath Wijeweera for removing Mr Lankadeva for enforcing law against abuse of permit system. If he not done it he would have been removed by Jayasundara and get the job done by another stooge appointed to the office.

  • 1
    0

    I gave vote for JPV at the recently concluded provincial council elections, because I believe the JVP is the only political party that engage in good politics sans frauds. However, on this all important issue I expect Mr Anura Kumara Dissanayake, to mAke a public statement on this scam of defrauding of multi billions taxpayers money.

  • 0
    0

    This is not only politicians. Higher ranked public officials also selling their permits. But this is illegal P.B cannot issue circulars against the law. But he always in above the law. He is a dictator in the Treasury.
    19 A of the Customs Ordinance and 3C of the Excise Special Provisions act clearly indicate the law. It is public responsibility to verify this legal background because this is public money. Now PB put another illegal condition charging 10% CIF value when transfer the vehicle.
    It is better to read the whole Clause of 19 A of the Customs Ordinance and whole clause of 3C of the Excise Special Provisions act then any body can understand what PB is doing against the law.

  • 1
    0

    This kind of indiscipline in the public finance never occurred until the end of Dudley Senanayake regime and Mrs Bandaranayake’s regime (that is until 1977). During that time there was no such law permitting duty free imports for what termed ‘in the public interest’ for sheer abuse.

    When Dudley died he had less than Rs 500/- in his account. Today with an election to any office in the Parliament, Provincial Council or Local Council one straightaway become entitle to embezzle several million rupees of tax payers money by selling tax free permits.

    We, the people of this country are helpless, as those who are in the Judiciary too involve in this scam.

  • 0
    0

    There is a saying that a country get politicians that deserve the people of that country. I believe that this saying is applicable to the people in this country as well.

  • 0
    0

    Kolitha

    All are aware of the Millions laundered/ misappropriated by you and Karunaratne with the collusion/ connivance of Sarath Silva

  • 0
    0

    Adonis,

    Please mind your own business. If I start my mouth, the abuses in the highest scale committed by the AG’s Department would be expose in the public domain.

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