Duty-Free fraud at Katunayaka airport

Duty-Free fraud .... 
which masks swindle of 10 crores

Sri Lankans from overseas arriving in the island to Katunayaka airport are provided with the opportunity of purchasing duty-free items. If the period spent overseas is long, the value of the benefits obtained increases.

It has been confirmed from latest reports of a tax swindle exceeding Rs. 10,00,00,000 per day by making use of benefits of claiming tax-free articles on Sri Lankan passengers who return from abroad after a period of 2 years; in a most irregular manner.

Though a passenger who had been abroad for over 2 years is entitled to purchase tax-free articles from  the duty-free shopping complex for upto a maximum of American $1750  (Rs. 2 lakhs 36,250), it is observed that even a passenger returning to the island after 2 or 3 days' sojourn abroad are being given the same benefit, thus resulting in this fraud.

A passenger with such benefits is able to purchase goods such as refrigerators, washing machines as well as foreign liquor from the duty-free shopping complex.

It was revealed that this fraud has been launched in an organised manner with notices being attached to the passenger's passport and other documents who have not purchased any articles giving the impression that the articles were purchased by the passenger and comments are made on the passport and other relevant documents to confirm such a purchase. The passenger is then taken away together with the goods concerned, out of the airport premises.

The swindling has been going on for sometime among a few corrupted officers attached to the airport and also some workers of the tax-free duty-free shopping complex who have political support. According to information received from Immigration and Emigration officials, a number of over 1000 passengers arrive at the airport.

Customs sources say that even if half (500) of these passengers are preyed upon, articles to the tune of at least Rs. 1 crore, 81 lakhs 25,000 in the minimum is swindled per day. As such, a tax-fraud of about Rs. 10 crore takes place every day.   

When inquiries were made from Mr. Sanath Nonis, Director, Airport Customs; what he said was that this swindling has been going on for quite sometime by an organised gang.

Village women who come home after working in Middle East for a long time have become a prey to these fraudsters. It is understood that a certain group of swindlers at the tax-free shopping complex enter into a conversation with these women and get them to sign documents to the effect that they have purchased these articles and is made to do so in return for a payment palmed over by them and finally they are sent out with the purchases in their possession.

Mr. Nonis further mentioned that in order to minimise this fraud, a seal had been placed on every article purchased from that shopping complex to confirm that it has been issued by the tax-free shopping complex and also that most articles being sold at trading centres down Malwatta road, Colombo have the said seal for that very reason and that some suspected passengers were checked in which instances it was found that they had 6 refrigerators amounting to Rs. 80,000 in their possession. Investigations are being conducted on this matter under the instructions of Mr. Jagath V. Wieweera, Director-General of Customs.

What Chief Secretary of Customs trade union, Mr. W.M. R.P. Wijeykoon said was that a Mafia which receives political support is at the back of this operation.  He also said that officers of his union have had to face harassment from fraudsters on a number of occasions and that authorities should mediate in this issue to minimise this case of fraud.

Mawbima newspaper report -- Chandrasena Marasinghe