6 December, 2019

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Exclusive: Why Rajapaksa Opened Flood Gates For Revenue Fraudsters And Restriction On Transfer Of Vehicle Permits Removed

By Colombo Telegraph –

“I write further to the instruction of the informant who claimed to have provided the credible information of a revenue fraud in which two companies namely LOLC and LB Finance are directly involved. This particular information has been given to the Deputy Director Mr. G.H.G.A.Lankadeva (Central Valuation), concerning importation of a large number of ‘permit cars’ by fraudulent means where the permits have been bought outright by  the aforesaid companies from the recipients of permits, including Power of Attorney and MTA6, making those who have bought permits de facto owners of the vehicles, an act which is prohibited under the law” Public Interest Litigator Nagananda Kodituwakku has written to Director General of Customs Neville Gunawardana.

PB Jayasundara

The three year restriction that was in place on transfer of duty free vehicles imported by public servants has been lifted with immediate effect by the Finance Ministry.

Confidential government documents obtained by Colombo Telegraph shows the reason behind the move. A government official, who declined to be identified, confirmed the documents were authentic. The Colombo Telegraph has been unable to reach Nagananda Kodituwakku for comment.

Board of directors of the two companies involved with this massive revenue fraud are highly influential and one such person is Dhammika Perera, the former Chairman/ Director-General of the Board of Investment of Sri Lanka (BOI). He is also a member of the Board of Directors of Strategic Enterprises Management Agency (SEMA) and the Sri Lanka Export Development Board (EDB). Another is Justice Suresh Chandra who served as the Deputy Permanent Representative of Sri Lanka to United Nations in New York in 2009. President Mahinda Rajapaksa  appointed Justice Suresh Chandra as a Judge of the Supreme Court of Sri Lanka in June 2010 and retired from that position in July 2012. He still serves as a Judge of the Supreme Court in Fiji since his appointment in Fiji in 2011.

Click here for Board of directors – LOLC

Click here for Board of directors – LB Finance

Public Interest Litigator Nagananda Kodituwakku wrote; “However, it is now learnt (or my client has reliably been informed) that these two cases would not be proceeded amidst strong opposition raised against the enforcement of law on the revenue fraudsters concerned. We wish to inform you that regardless of any unlawful directions you may be getting apparently from the ST, you are, being the General Superintendent of all matters relating to Customs, under duty to enforce the revenue protection provisions of the Custom Ordinance appropriately and our client’s interests in the instant case.”

Treasury Secretary repeatedly complaints about the lack of funds to maintain the essential services like education, health, transport and also to provide a decent salary for services funded by the government. Yet what he practices is completely opposite of what he preaches and surely against the public interest, particularly when it comes to the collection and protection of government revenue.

Facilitation of duty free car imports       

Annually a large number of permits are issued by the Finance Ministry to import cars free of Customs duty  and this facility is afforded to various categories of people under the Customs Law (Section 19A) on the basis that the Minister of Finance considers that issuance of permits to such persons is meaningful in the ‘public interest’.

How Treasury circumvent the law to facilitate fraudster elements

However, the Colombo Telegraph, based on startling evidence received, can now reveal with confidence that this is nothing more than another deceptive ploy Treasury Secretary P.B. Jayasundera adopts to ‘facilitate’ his close associates to import luxury cars absolutely duty free defrauding the government revenue.

Punitive duties imposed on cars

In Sri Lanka the tax table on cars released by Customs provides how punitive and unreasonable the tax imposed on cars. The combined taxation for even the smallest car like Indian made Maruti is over 200% and for the smallest diesel driven car is over 250%.

How the fraudsters evade taxation

Those who are in the ‘trade’ are well conversant with the ways and means as to how to defy the tax system.  The table shows over 350% duty on diesel cars of over 2500cc but that is never applied on duty free permits issued in the ‘so-called public interest’ by the Finance Ministry subject to condition that no such cars shall be sold or disposed in any manner for a period of three years from the date of importation.

ST condones open defiance of the law

Further to information received on 13th November 2012, a group of Customs officers’ raided two leading and influential business entities in Colombo companies namely LOLC and LB Finance that had imported a large number of duty free cars completely defrauding the government tax element.  Immediately thereafter the Director General of Customs Neville Gunawardana, who is under duty to protect the government revenue, purportedly on the orders of the General Treasury was forced to withdraw the officers and stop the investigation. Although the officers were prevented from seizing the vehicles they still managed to seize all the documentation relevant to the abuse of duty free permits from the two business establishments.

Informant intervenes and protests the DGC at fault

The said action by the DGC clearly denied the informant who provided accurate information of his legitimate share for a cash reward. This situation has put DDC G H G A Lankadeva who has received the information under heavy pressure from the informant. This was followed by a warning letter dated 14th Nov 2012 to the DGC by Nagananda Kodituwakku who was protecting the legitimate rights of the informant, in the event the law is flouted by the DGC letting the fraudsters go scot-free.

Finance Ministry intervenes to protect the fraudster elements

On the following day i.e. 15th Nov 2012, a directive by the Finance Ministry on the matter reached the DGC’s office. This surprised directive, which is clearly unlawful, has removed all restrictions imposed on the duty free permits with retrospective effect, effectively preventing the officers of Customs from enforcing the law against the fraudster elements who had abused the duty free permits and defrauded the government revenue.

DGC directs the closing of investigations

Then on 19th Nov 2012, the head of the investigation G H G A Lankadeva makes the following minute to his investigation team, resulting in shutting down the investigation into this massive fraud completely, on the orders of the Finance Ministry (15-11-2012).

‘…Please note the contents of this letter (Finance Ministry letter dated 15th Nov 2012 on which the minute is made) and the effect if would have on our cases. DGC asked me to release the files already taken over…’

This is how the Head of the Treasury of Sri Lanka, openly flouts the law whilst his government is framing the Chief Justice of the country for alleged abuse of office.

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Latest comments

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    Colombo Telegraph thanks for raveling the true facts behind lifting the restriction on duty free imported cars to facilitate two business magnates by treasury secretary P.B..Jayasundara.This man was found guilty by the supreme court for helping John keels Co. Ltd to gain undue advantage when taking over a government institution under privatizing policy,if my memory is correct this was under Chandrika’s government.It was held he was not fit to hold a government position.Despot like Rajapksha has no respect for judiciary ignore all that and took him back.But the fact remain that P.B definitely would have been instructed by Rajapakshe regime to do so.Few weeks ago lankaenews reported that Dammika Perera of LB finance and Ishara Nanayakara of LOLC went and met MR to get this done so this is the result of that meeting.Millions of rupees are lost by the government in its revenue by the action.This how MR his helping the poor.This country will never prosper under theses blood suckers be it UNP or UPFA there is no difference.We have seen this for decades.If a calculation is done I am certain that The amount rob by Britishers from this country for nearly 200 years would surpass the amount rob by the local politicians in the 64 years of governing after independence.But we must not forget to thank the Britishers for infrastructure built, system of education, system of judiciary introduced by them for our country.What our local politicians left for us after governing so many years,dis united country and tail of destruction to name a few.

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      Hello lion it may do you good to also remember who gave these orders. The most corrupt judge in Sri Lanka’s history( I am not saying this but many distinguished legal minds have questioned his judgements) do you think JKH really can not function with out the wrong kinds of help that you are talking about?
      Now he said PBJ helped JKH and handed the company back to CPC. ARE THEY MAKING THE SUPER PROFITS JKH made?? If JKH bought the company and made the measly profite or losses CPC is making, would the super smart Vasi Deva have really taken them to court?
      Small minded failed accountants failed politicians who even at the end of their lives, are still basking in their respectable parents glory( some nice parents also give birth to parasites you know)they can not look at the big picture. So full of Vindictiveness. Typical !!! Was JKH making money selling tomSri Lankans? NO why then were they doing so brilliantly well with this company? Efficiency Lion and super management skills. Plus no looting and plundering. This is how you manage a company successfully not by getting undue favors. JKH has been chosen the best corporate entity for many years running by LMD so elect your leaders smartly, guys who can run countries like they run these companies

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      Despite the global shipping downturn, white elephant harbours that provide huge Chinese kick backs for the Rajapassa family are coming up all over Lanka – Hambantota being the latest. Containers handled at Sri Lanka’s ports fell 3.3 percent to 329,199 in September 2012 from a year earlier, with domestic containers falling 8.3 percent to 86,273 amid an economic slowdown, while transshipment volumes also fell.
      The national debt is growing and the rupee crashing because of all the debt piled on for white elephant harbour projects and loans that the people of Lanka have be pay for Rajapassa’s failed development schemes!
      Rajapassa is carrying out massive fraud in the name of development!

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    Sri Lanka is run by thieves. Period.

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    This reveals how the National Budget of the country is being manipulated to benefit cronies and sycophants of the Govt. The Minister of Finance is directly responsible for this scam and being the President should immediately resign from his post. Leagal action should be taken to bring all the culprits to book including PBJ.

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    The world’s cheapest car the, Tata Nano costs 1.5 million SLR due to exorbitant taxes whereas it should cost only 200,000 SLR.

    Meanwhile, Lamburghinis the world’s most expensive cars are imported free of duty to entertain the Rajapakse brats and their cronies.
    And the people of Colombo cannot sleep at night due to car racing, noise and environment pollution by these morons by and their uneducated and uncultured friends who need cheap entertainment and think that car racing is DEVELOPMENT!

    The Rajapassa brothers and sons are really “backside up” when it comes to education, development and culture! Sri Lanka is a BANANA REPUBLIC all right! Stop the impeachment of the CJ!

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      Latest rumour is that one Lamborgini has landed at Ratmalana Airport and it is for Koparage Mervins son.

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        A half bottle petrol and a box of matches could do the job.

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    How LOLC and LB recover the massive funds that they may spent during the Ruling party election campaigns and to manage payment of commission if they do not engage in “Easy money earning”activities and strategy.The Chief of the Finance Ministry may bound to full fill his “Election Promises” to these “Big money venders”

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    Thanks Colombo Telegraph for this excellent piece of investigative reporting.. Wish the mainstream media and the Maharaja TV channels would follow up on stories like this and follow the NDTV means of exposing corrupt politicians and bureaucrats.

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      Those channels and media never never will publish those unwanted news to be read by the stupid mass.Hold your horses dont waste your breath all you barking dogs.

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    I believe under the title ‘ROGUES GALLERY’ All these people should be listed with their mugs giving a full discription of connections and commitments by them and a website opened. The information provided should be factual hence any who feels offended could take up issue in Court. Such a Website would serve all to know, who these Paragons of Virtue are.

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    NO doubt the Dam Street fire whose causes are still unknown in the Colombo Katchcheri was another carefully thought step in the systematic robbery of the people of Sri Lanka through land and asset grabbing by the Rajapassa regime and its cronies..

    The destruction of documents and land titles in the Colombo Katchceri is no doubt in order to destroy land ownership records and ensure smooth robbery of peoples lands by the the Rajapakse brothers.. and their military apparatus!
    Destroy the Judiciary, the land registry records, and then steal and loot the country – this is the grand plan of Rajapassa Brothers Inc.

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    Send the white van and pick up the treasury officials

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    helping hambantota fraudster is now minister finance?

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    The UNP did the exact same thing when they were in power. Not defending PB but that’s the truth. If politically appointed people cannot bend the rules to favor those who appointed them, then what’s the point. One might as well appoint someone who is qualified. How can the regime be expected to go about peacefully pilfering state resources if the Colombo Telegraph keeps doing these expose’s?

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    THIS IS A HOLMANG COMEDY COUNTRY OF FOOLS AND IDIOTS AS RULERS !

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    Civil society please take legal actions against this! These are the ammunitions the regime has provided the civilians to use as weapons!

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    Thieves in garbs of saints before the people.a wonder of Asia. Thank you Colombo Telegraph for your revelations.

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    Tax on vehicles are prohibitive and very unfair. I am told to pay 11.5 million tax for a 2008 Shogun that I have got down on a carnet a year back.

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    Disgraceful!!!!!!!!!!!!!!!!!!!!!!!!

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    This is lies. His Doctorate now not worth even a toilet paper. Like other ruling politicians he ilks what ever place ask to lick for money. One of the most corrupted officer, similar Nivard Cabral at CB. This fellow has University education at free of cost.
    So all politicians regardless the party has permits for duty free vehicles
    All officers, ruling part supporters will have similar like journalists

    The votors, you pay tax OR now ready to buy local (Indian Co but invested by ruling family)manufactured, ill manufactured vehicles without pay and give them profit the way give votes to them

    Mooda Sri Lankan majority Sinhalese deserve this type of treatment as they forget every thing within few days

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    All name of the Game !!!!!!

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    An impendinga disaster can be seen from the very degenration and dishonesty of the so called “educated” act in a fraudulant manner with disrespect to the very level of education they have received. They are a disgraceful lot milking the “Public Purse”

    Shame….Shame…..Shame…

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    Rajapakse’s cannot understand PB’s under hand games. ALL financial problems in treasury are because of PB That’s why PB was announced by SC as a person who was not suitable for the Public service.

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    I think the whole Golden Key fiasco was planned and carried out by some very powerful VVIPs for their evil purposes. It was the pure rumor that made it collapse. Central Bank could have easily bailed it out and could have rescued both investors and the customers…but it did not. Now somebody is planning to buy GK assets and others relating to it for pennies with various phony corporate names and settle the depositors.
    I have a strong feeling the Divinesuma bill and the GK settlement have some connection…..Only time will tell.

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    UNP parliamentarian just brought out the news that Central Bank has bought a second floor 12000 ft property in NY, USA Last year fro US$Five million (5) + sum amt. This was revealed only after the UNP minister brought this up in the parliamnent. Also CB say they have rented out to our foreign ministry for a monthly rent of US$68,000.
    When you look at the whole picture…first it is our foreign exchange of US$5 million spent to buy and again spend US$68,000 a month to pay rent on the same building.
    Both 5 million and the $68,000 are unthinkable.
    The reason is In NY you can buy a 5 bedroom luxury house for US$1 ( one million) or…could rent a 5 bedroom luxury house for $6,000 per month.
    Please do your math and see how many houses either could be bought or could have rented for the price CB paid. Mind you still the govt. have to pay property tax, condo-apt maintenance fee, all utilities (electricity, gas, water, AC/heating) etc….every month.
    This is bought when CB has a US$6 billion debt.

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    What is the point blaming corrupt politicians and officials. They are all corrupt. the politicians,officials,judges,lawyers,doctors, academics, you name it they all are corrupt. The society as a whole is corrupt and it is not limited to our country,look at europe one after the other european countries collapse. Frauds uncovered in India are of massive scale and officers who invetigate are murdered. The world as a whole is heading for a major disaster.But,not the kind expected on 21st december

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    We are sick of these capitalist rogue elements hiding behind UNP & UPFA, when our people going to rid these rogues.

    • 0
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      N E V E R. Catch me if you can. All living in fools paradise.There will be a haulocost.

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