An additional Director General of Customs has being involved in a massive scam where he has allowed a leading businessman to import palm oil, unfit for human consumption under a false description, which has also resulted in the Government losing over Rs. 755 million in tax revenue.
Public Interest Litigation Activist Nagananda Kodituwakku
The palm oil, weighing in thousands of tons has been released to the domestic market, and is absolutely prohibited by the Food Act for human consumption, an investigation has revealed.
This massive fraud has now been taken up in the Court of Appeal (CA/201/2016) by the Public Interest Litigation Activist Nagananda Kodituwakku, based on the Governments Analyst reports filed in Court by the activist where it was revealed that the said Customs Officer has surreptitiously concealed very adverse reports issued by the government analyst, which confirms that the samples examined by the Government analyst contained 23% fatty acid and the said officer has done so to facilitate the importer with a wrong classification of the commodity given to evade payment of the fiscal levies.
Further analysis of the samples examined by the scientists also filed in Court, also confirms that in crude palm oil fatty acid content shall not exceed 5% and in the refined palm oil it shall not exceed 0.1%.
The analyst reports states that ‘… any vegetable oil which contains high amount of free fatty acid (as the case of this particular product) is highly liable to oxidation and could generate various oxidized products that could harm human health. For instance, end-products of lipid oxidation could be mutagenic and carcinogenic and that the lipid oxidation has role in in the pathogenesis of several pathogenesis such as neurodegenerative, inflammatory, infectious, gastric and nutritional diseases in humans. Therefore, the particular product that has been claimed by the importer as Crude Palm Fatty Acid’ is not suitable for human consumption…’
In the meanwhile the Malaysian Palm Oil Board has also confirmed that there is no such product called Crude Palm Fatty Acid in the palm oil industry and that their investigation conducted into the matter had revealed what the importer claims Crude Palm Fatty Acid is palm oil blend with fatty acid (the process surreptitiously done to evade payment of fiscal levy at a higher rate).
Further to the Customs investigation now being conducted into this matter, 24 containers of adulterated palm oil has been seized by customs. Now the importer, relying on the falsified report earlier given to his favor by the Additional Director General, makes every attempt to have these detained shipments released from the Customs custody.
Therefore, the rights activists furnishing this information requests the Court to make an Order compelling the Director General of Customs to confiscate all 24 containers of adulterated palm oil not good for human consumption and to destroy them in public as a deterrent to other such importers, who import similar substandard food items absolutely disregarding the health and safety concerns.
Nihal G / July 4, 2016
The Additional Director General who approved the false classification has refused to surrender and is now hiding.
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Suriyarachchi / July 4, 2016
The Director General has been approached by the head of the Classification Committee pleading not to arrest him and DGC has directed the head of the investigations not to arrest him.
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Charundya / July 4, 2016
This company does have a state of the art refinery and company pays high attention towards acquiring modern manufacturing technologies. Unfortunately this article do not mention about the refining capabilities of the company. If the end product complies with the applicable SLSI Standards which is going to the general public, we should appreciate their innovation. I think Mr. Nagananda needs to look in to their refining process. Further as per the article they are importing the product under a ruling approved by the Sri Lanka Customs.
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Riky / July 4, 2016
Importer has declared that product has 23% fatty acid. Mr.Nagananda has not shown any evidence to say that importer is selling direct to general public. If they are refining that’s technology and innovation as said
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Canadian Sri Lankan / July 4, 2016
It will be good if Sri Lanka approach Singapore to get some idea of how they go about training their food chains , supermarkets , Food stalls , Groceries tc under the government training systems ,it is almost the same one as in Canada.
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Kasun / July 4, 2016
Interestingly analysis report is taken from University of Peradeniya animal science where they are not accredited to do any of those testing. I think allegations have been made to discredit the company by custom officers.
http://slab.lk/Support/AccreditedOrganizations/chemical/Schedule-FSQAL-Uni-Peradeniya.pdf
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sanjaya / July 4, 2016
[Edited out]
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Riky / July 4, 2016
Importer has declared that product has 23% fatty acid. Mr.Nagananda has not shown any evidence to say that importer is selling direct to general public. If they are refining that’s technology and innovation as said
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shankar / July 4, 2016
what can you expect when nothing is done about past cases such as the Colombo Dockyard one where the government lost billions on duty and the former Cheap Justice Mohanpeiris who was the attorney general at that time shielded dockyard.naganada then filed a case as a private citizen but has gone to sleep now i think.Unless previous cases are dealt with harsh punishment then there will be no deterrant effect and the plunder will continue.Now we have a string of cases in the FCID but no punishement given.So there is no deterrent effect.
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Sam / July 4, 2016
[Edited out]
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Upul / July 4, 2016
Let me get this straight. An enterprising company imports a Palm oil product NOT meant for human consumption AND wants the idiots in Sri Lanka to believe they refine it so it is fit for human consumption? Right?
And we have fools ready to shoot the messenger…what’s new?
What is the name of the customs official. Is he not named in the legal filings? If he is..why is CT playing coy with the facts?
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Charundya / July 4, 2016
I think you are referring to my comment. I will give you a simple example if a humans eats rapeseed oil they will die because it’s toxic and once refined it’s called Canola one of the premium oils in the world.
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OILING THE PALM / July 4, 2016
Looks like the Importer’s puppies are on CT comments, trying hard to lick the wounds.
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Nagananda / July 4, 2016
Mr Shanker,
Just don’t make unfounded remarks without observing what is happening around you.
Visit the following news item that tells everything (end result) about the fraud involving Colombo Dockyard.
https://www.colombotelegraph.com/index.php/dockyardgate-finally-comes-to-end/
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Native Vedda / July 4, 2016
Nagananda
“Mr Shanker,”
Actually, it is not Mr but Mrs Shanker who is still in love with the old army boy (Walter Mitty), Black and Decker.
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shankar / July 5, 2016
dear MR.nagananda
you have not read my comment carefully.I have mentioned the wor punishment.That is what deters others from committing the same crimes.getting back the money due to us anyway with a measly top up of 10 million is not punishement.In the article you have given here the following says its all
[Since the law has taken the right steps, lawyer Kodituwakku has now decided to withdraw the case (SC/Writ/03/2015) filed against the Corruption Commission and on 19th Nov 2015 filed a Motion in the Supreme Court, informing the courts that considering the steps taken by the Corruption Commission, he would not proceed with the said Writ Application.]
so in nov 2015 an afidavit has been given by peiris stating the details of what he had done.Six months later nothing has been done by the corruption commission.why don’t you now resubmit what you withdrew and keep withdrawing and resubmitting and withdrawing.Nothing like playing games here without end result.In singapore under lee kuan yew mohan peiris would have been languising in jail with his comrades in the dockyard.o so goodbye to srilanka ever becoming a singapore or malaysia under mahathir.If the bugger was charged and proper action taken long ago we would not have the palm oil scam.
I don’t think dockyard paid the billions of rupees duties that were owed to us.The article does not mention the amount.A big whitewash if ever there was one and you seem to be at the center of it.
I remember that other fellow fazl came out with a article in the colombo telegraph about more than a year ago talking about a big property scam by the maharajah organisation for billions of rupees and not a sound from him too.
naturally maharajah’s would have contacted him and kept him quiet,knowing the type of guys they are.
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Nagananda Kodituwakku / July 4, 2016
I believe I should not respond to vulgar allegations made against me. So that I decided to put one single document in the public domain that tells everything about my role in the Customs Administration that I was compelled to vacate in 2001, in my prime age of 47 years.
https://www.facebook.com/photo.php?fbid=10206532589619553&set=a.2060038346639.2100314.1415076594&type=3&theater
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Amali / July 4, 2016
Sri Lanka was very well eating coconut oil sometime ago. In came some bogus news about how it is unfit for consumption. Then the increased demand for vegetable oils and palm oil arrived. Now over like a decade later, research shows that coconut oil is good AND what’s more, vegetable oil releases cancerous fumes when heating up. That is my first point from a health point of view to make the public knowledgeable. My second point is about the importing of unfit products. Recently so many were unearthed including pharma drugs like eye drops. What is banned in countries for kids is brought here and sold. The public health inspectors to every personnel who is taking bribes and work in a corrupted way earns unethically through these products endangering the life of humans who are victims of these expired, unsafe products. This has to be stopped. When any man or woman stands up to fight for these, our OWN people who themselves are the victims react badly towards that person either because they are ignorant and they do not know their facts, they falsely accuse that rights fighter blaming without grounds, they go after selfish profits and WANT corruption to continue hence they again attack who ever stands against corruption…which is what some people have done here towards Mr. Kodituwakku. ANY MAN or WOMAN who stands up for what is right is doing an act that is worthy of praising. People need to understand that putting aside their puny ideas, narrow minds, corrupted hearts and ignorant mindsets. What is wrong is wrong. If you want a future for this land, your children and yourself then join people who stand up against corruption and support them to fight it. Else, you people are as good as traitors of this land – you know it too in your hearts that you are doing what is wrong and that will eventually find you back. So don’t call yourselves sri lankans if you are attacking those who are trying to bring light of day to this country. Call yourselves traitors of mother lanka who has not an inch of care or gratitude towards the very soil you were born in. SHAME on you people who attack those who are trying to do what is lawful and ethically right!
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sacre blieu / July 7, 2016
Today many in our country has got used to earning wealth in an illicit way and it is those who come before the TV cameras and pontificate about the moral high ground. They all their votes to the political devil for bribes and which was seen in the general election of when Mahinda Rajapakse was president and made clearly so by certain dedicated media. Even those vociferously protesting the blocked drainage are the very people, in most case, who dump their dirt into the water-ways and drainage systems. Be yo u ever so blind there is no place like Sri Lanka.
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Amali / July 4, 2016
Sam, you are accusing Mr. Kodituwakku here for taking bribes. Where is your proof?
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Sam / July 6, 2016
Please read 14-02-1986 Divaina. Should be available in public library.
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Sri lanka Citizen / July 4, 2016
@Nagananda Kodituwakku
You do not have to explain to any of the Jokers here , there are quiet some . Just believe in yourself , there are quiet a large population today who really want to see A Sri Lanka worth living in, and we need people like you and salute you and will be with you all the way.
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Sri lanka Citizen / July 4, 2016
@Amali , very true ..
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Sam / July 4, 2016
I am referring to 1986 incident. If someone needed can produce the full set of documents :)
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madurapperuma / July 4, 2016
Dear friends,
I have been watching your comments. It is strange but unique to Sri Lanka that everybody want to forget about the real truth and hang on petty politics.
Don’t you see guys that the heartless importer of palm oil has seriously threatened the health of yours and all your children?
Can any one on the earth believe that palm oil with such a huge percentage of Fatty acid could be brought back to edible quality in a refinery? Has any of the food regulatory institutions in SL certified the quality of his oil after the refinery process?
Be mindful of what you all are eating and do something to encourage the people who want to stop these illegal acts.At least for the betterment of the future of your children. Otherwise crooks like this importer will ruin the future of your children for money they want by hook or crook.
Madura
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Those who close their eyes and want to see the sunlight / July 5, 2016
@madurapperuma -You could have not have said it in better words .
For some Sri Lankans its whom the they hate most, not the truth ,
Truth will always prevail over falsehood , falsehood is bound to perish and so will the ones who are fake .
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sanjaya / July 5, 2016
[Edited out]
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Kevin / July 5, 2016
Hi Friends
I agree with Madura it’s unique to Sri Lanka that everybody prefer to forget about the real truth
I’m Sri Lankan living in Australia and do have more than 10 years experience in edible oil refining. I have worked in India, Malaysia and now in Australia.
First if the importer selling this product direct to public it’s a duty of Department of health and consumer protection to take action against this importer.
As I can understand from this conversation and article is this importer is bringing down a palm based product with high FFA. This product should be solid or semi solid in room temperature in Sri Lanka if people eating this direct they have to use it as a fat spread. Eating this direct is not good to health.
We have to understand now it is possible to refine/ separate this type of fatty mixtures and get the edible portion out. I don’t know whether this is possible in Sri Lanka due to lack of knowledge and technology in a country like our country. If this importer is doing it it’s all about technology and technology is available. I know some companies in other countries who have even convert fatty acids in to oil by adding glycerol.
There are many oils which have very high FFA in its crude form such as rice bran oil and rapeseed oil (some of them are toxic) and we are refining it to a premium product by using advance refining technologies and some of the oils are exported to Sri Lanka. This is a very expensive process which involves lot of technology.
I hope this factory is in Sri Lanka (if they have one) so the officials of the customs and other relevant authorities can go there and validate the process. There have to be an input (High FFA oil) and output authorities can check the edibility and conformity to the standards of the output. If the output is confirms to the standard it’s edible and fit for human consumption (I am not telling palm oil is healthy) and if not it’s not fit for human consumption and they have to use that for industrial purposes or destroy as it cannot go to the general public. This is the procedure develop countries follow to protect the industries as well as consumer rather than working to stop this type of process which is beneficial to our country.
Kevin
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SB / July 5, 2016
Theses crooks are allowing sub standard Plam oil at the expence of coconut oil we have Ministers to look after this industry those fellows are the biggest Plam oil import licence approvers. the coconut industry gained ground due to Rajapakse giving more or less free fertilzer. today coconut producers are running at a loss ! so much ponils big talk.
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S M J Senaratne / July 6, 2016
After having gone through the comments made about Nagananda Kodituwakku, the rights activist, I being one of the former Director Generals of Customs (DGCs) under whom NK performed his duties as a Customs Officer, can relate with no reservations that NK is one of the best and highly dedicated officers I have ever come across.
I am aware that there had been several attempts to get rid of him by the organiSed fraudsters backed by corrupt officers in the Customs and at one stage he was framed on a bribery charge. I know that this was done after having failed in several attempts to harm him physically.
In the said bribery case, three DGCs voluntarily testified before the Colombo High Court on the integrity, honestly and loyalty in the discharge of NK’s duties with no fear or favour. And finally he was exonerated from all the unfounded charges made against him.
Unfortunately he was forced to leave the country somewhere in the year 2000 under life threats, which had reached to the peak point with the involvement of powerful politicians at the time.
However, I am happy that he has returned to the country and continue to fight for justice for the people whose rights have been betrayed and disregarded by the corrupt elements in power.
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Kasun / July 7, 2016
S.M.J. Senaratne vs. Bangamuwa Case no: CA 259/ 99
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Gunarathna / July 6, 2016
According to the Malaysian report annexed it has been confirmed that exporter added fatty acids ( PFAD) in to refined palm oil. RBD palm oil is the ultimate product that is issued for market and we all purchased it as vegetable oil under different name. PFAD is the by product fraction removed during refining of crude palm oil and it contains minimum 70% of free fatty acids. Free fatty acids are carcinogenic, causing heart failures and leading many non communicable diseases. So as free fatty acids are extremely harmful component adding it into the edible oil is ADULTERATION of food. It is unbelievable why he has done this ( removing harmful fraction first and again add that harmful things into the food). I think exporter has no any reason for that other than importers request to mislead the customs by giving fake name for that adulterated Palm oil as CPFA to get rid of applicable duty for Palm oil as well as approvals from SLSI and health department. What a tricky person he is. How can he did that. I think this is one of the best and historical international trade violations ever captured. This kind of unbearable frauds have very short life as proved from this case as well im sure he has enjoyed over 755 million due to the country and now it’s time to repay that amount back to your motherland. This will be a eye opening case for those who are importing stuffs in to the country to pay right duty applicable and to obtain relevant approvals needed for the product. However weldone customs for uncovering this ugly truth by taking assistance from Malaysian authorities. We as general public highly appreciated it
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kevin / July 7, 2016
Dear Gunarathne
Is blending is a international trade violation? may be in Sri Lanka but not internationally i am sure
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Kevin / July 7, 2016
seems that everyone is concerned about Fatty Acids. Please read the following article about fatty acids. it has health benefits and risks and it is not toxic
http://www.fao.org/3/a-i1953e.pdf
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Gunarathna / July 7, 2016
fatty acids are not harmful my dear kevin. Free fatty acids (FFA) are harmful and considered as deleterious substance (free radicle) and that is why crude palm oil is refined to remove FFA and ultimately in he final product (RBD palm oil) FFA level should be below 0.1% by mass. seems you dont even have any basic idea about fats/oils and end products of oxidation of fats. you better study health implications associated with free fatty acids
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Kevin / July 7, 2016
Dear Gunarathne
I do have a enough knowledge about fats and oils to hold a higher position in a oil refinery in a first world country .
Further I never mentioned that FFA is good if you read my comment carefully and if you go to the link
Somehow got my point if the FFA is below .1% by mass that is fit for human consumption that is the reason I state following in my previous comment. “I hope this factory is in Sri Lanka (if they have one) so the officials of the customs and other relevant authorities can go there and validate the process. There have to be an input (High FFA oil) and output authorities can check the edibility and conformity to the standards of the output. If the output is confirms to the standard it’s edible and fit for human consumption (I am not telling palm oil is healthy) and if not it’s not fit for human consumption and they have to use that for industrial purposes or destroy as it cannot go to the general public. This is the procedure develop countries follow to protect the industries as well as consumer rather than working to stop this type of process which is beneficial to our country.”
Seems like this importer having a place that enyone in the country can not reach. Then the government authorities have to take the steps to go and check the efficiency of the process.
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Kevin / July 7, 2016
Dear Gunarathne
My knowledge on oils and fats are sufficient enough to be a process specialist in a oil refinery in a first world country. Thank you for getting my point please find the following part of my comment
“I hope this factory is in Sri Lanka (if they have one) so the officials of the customs and other relevant authorities can go there and validate the process. There have to be an input (High FFA oil) and output authorities can check the edibility and conformity to the standards of the output. If the output is confirms to the standard it’s edible and fit for human consumption (I am not telling palm oil is healthy) and if not it’s not fit for human consumption and they have to use that for industrial purposes or destroy as it cannot go to the general public. This is the procedure develop countries follow to protect the industries as well as consumer rather than working to stop this type of process which is beneficial to our country.”
I never say that FFA is good. My argument is FFA can be removed with technology and in the refinery I’m working we import coconut oil and separate the Lauric acid and sell that separately. We should do this type of processes in Sri Lanka because that will bring forign exchange to Sri Lanka.
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madurapperuma / July 7, 2016
Dear Kevin,
Your stance hints of a writer hired by the importer of this health hazardous oil. Please try to be a rational person who stands for the eternal truth instead of representing a criminal who has put the lives of your countrymen into a damn risk.
The importer has earned billions of rupees by selling his poisons and you seem to be grabbing a part of it by whitewashing his image.
It is a shame.
Madura
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Kevin / July 7, 2016
Dear Madura
Your stance hints that you know the importer personally and how much he has earned. But I don’t know them or their wealth I only know about oil and fats.
I have clearly stated that if the importer is selling this direct to consumers that’s very bad. I talked only about the available technology. If you point out what’s bad in my comment I can give a proper answer. I know many Sri Lankans who is trying to be petriotic by putting in emotional comments than talking the truth.
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