{"id":43702,"date":"2015-10-26T02:04:12","date_gmt":"2015-10-26T06:04:12","guid":{"rendered":"http:\/\/dbsjeyaraj.com\/dbsj\/?p=43702"},"modified":"2015-10-26T02:41:44","modified_gmt":"2015-10-26T06:41:44","slug":"how-three-customs-officers-were-caught-in-the-act-of-accepting-record-amount-of-125-million-rupees-bribe-from-a-spare-parts-importer","status":"publish","type":"post","link":"https:\/\/dbsjeyaraj.com\/dbsj\/?p=43702","title":{"rendered":"How Three Customs Officers were Caught in the act of Accepting Record Amount of 125 Million Rupees Bribe from a Spare Parts Importer"},"content":{"rendered":"


\nThe recent arrest of three Customs officers who allegedly solicited and accepted a Rs. 125 million bribe from a spare parts importer in Colombo hit the headlines. It was described as the biggest-ever detection made in the history of the Bribery Commission.<\/strong><\/p>\n

“Sunday Island”s sister paper “Sunday Divaina\u2019 spoke to the importer, who tipped off bribery sleuths about what he called the “persistent demand by the three Customs men for a hefty gratification to cover an import duty fraud”.<\/p>\n

“There was no fraud as the consignments were spares for the Sri Lanka Transport Board (SLTB) imported duty-free on government approval”, he insisted. “But, the Customs officers demanded Rs. 150 million as a bribe, which was later reduced to Rs. 125 million after repeatedly pleading with them”.<\/p>\n

The importer concerned revealed the sequence of events on the condition that his identity should not be disclosed as he was concerned about his safety.<\/p>\n

<\/p>\n

This is how he recalled, in his own words, the saga that unfolded over the past three weeks, which culminated in the arrest of the Customs officers while accepting the Rs. 125 million bribe:”I embarked on a business venture in 1974. This is not something new to me as running businesses is in our family. The company which figured in the bribery detection doesn\u2019t belong to me. It is a collaboration between the SLTB and an Indian company called Steel Impex & Industries (Pvt) Ltd. The local affiliate is called Steel Impex & Industries Lanka (Pvt) Limited, which was established on July 22, 2011.<\/p>\n

“The objective of establishing this company was the inordinate delay in procuring spares to repair SLTB buses due to financial difficulties. There were times the purchase of spares by depot managers resulted in various irregularities. Therefore, there was a need to procure quality spares at competitive prices.<\/p>\n

“In 2011, open bids were called to import and supply spares on the basis of the tax concessions given to the SLTB. The required spares were listed by the SLTB, which also provided warehouse facilities to the supplier, who had to procure and supply the spares to the institution\u2019s head office, depots and regional workshops under a concessionary credit mechanism.<\/p>\n

“Steel Impex & Industries was initially selected for this purpose. To cut down on delays experienced by a single importer and supplier, another company called Nimbus Automotive (Pvt) Limited was also brought on board under the same conditions. This was how Steel Impex & Industries Lanka (Pvt) Limited was started. It operated from within the SLTB spare parts complex at Ekala. The local venture was funded by the parent company in India. There was no local financial input involved to float the local company.<\/p>\n

“I was the facilitator who brought together these two companies. In other words, I was the broker for which a small commission is paid to me. The Indian parent company sends spare parts on the requirements listed by the local counterpart. The consignments are addressed to the SLTB and all items are duty-free. The SLTB seeks the written approval of the Finance Ministry to clear consignments, as and when they arrive.<\/p>\n

“The goods are cleared from the Customs by SLTB officers, who transport the stocks, do a quality check, separate the damaged spares, bill the lot in bulk and hand over the consignments to Steel Impex for distribution as per orders sent to them. There was no tax fraud involved. Even in case there was such an irregularity, it is the SLTB which should be paying the fine and not Steel Impex.<\/p>\n

“The Customs knew there was no tax fraud. What they insisted on was that they couldn\u2019t accept that duty concessions had been granted and wanted to investigate it further. For the first time, six Customs officers visited the Steel Impex office at Ekala and removed the books for investigation on February 11, 2015. That was not an issue. If there was a discrepancy, they should look into it. I prepared the relevant documents and asked them to investigate it expeditiously.<\/p>\n

“But, I was not summoned for any inquiry for eight months. They kept on saying that there has been a tax fraud from the day the company was set up and recorded statements from me 10 times. They questioned the employees also and recorded their statements. I was made to understand that some customs officers had gone to the SLTB and threatened some officials there. Ultimately, they interfered with my private business and tried various tactics. This was becoming a thorn in the flesh for me.<\/p>\n

“Then they accused Steel Impex of not paying VAT. Even if that was so, VAT was not a subject under Customs purview. One day a Customs director called and said “let\u2019s sort this out outside official channels”. He wanted 500. I said that\u2019s too much. A few days later, he called again and said 150. I was under the impression that it was 150 lakhs. He continued to call two to three times a day demanding money.<\/p>\n

“As this harassment was becoming unbearable, I visited India and discussed this with the parent company and came to the understanding that “something should be offered and the matter sorted out”. The Indians were agreeable to give even Rs. 25 lakhs and finish it off. After I returned to Sri Lanka, I met with the Customs director and told him to accept 25 and to leave us alone, but he refused. Then, I said accept Rs. 50 lakhs and finish it.<\/p>\n

“The director asked me whether I was out of my mind. He said that he wanted Rs. 1,500 lakhs (Rs. 150 million) and not Rs. 50 lakhs, and laughed. I froze on hearing this. “How can I give such a lot of money”, I asked.<\/p>\n

“Why are you frightened? This is a small case. We have handled bigger cases than this and taken millions of rupees. This money is not only for me. It has to be distributed amongst another five to six people”, the director said.<\/p>\n

“Initially, they had wanted Rs. 500 million. That was what he meant by 500 earlier. Later, it was reduced to Rs. 150 million. That\u2019s 10% of the value of consignments imported to Sri Lanka since Steel Impex was started in 2011. I thought there was no need further discussing this matter with the Customs. There had to be another way out.<\/p>\n

“I then discussed this issue with some top lawyers and some former Customs officers. They agreed there was no fraud and the Customs had no authority to investigate the company. Later, I personally met with the Bribery Commission DG and explained the situation to her. She said that these Customs officers should be trapped. That\u2019s how the strategy was put in place to net in the culprits. I worked according to a plan set out by the DG.<\/p>\n

“I called the Customs director and told him that I cannot pay the Rs. 150 million demanded by him, but is agreeable to pay Rs. 125 million. But, he refused to accept the reduced amount. I pleaded with him that we don\u2019t have such a lot of money and it was only after much persuasion that the parent company in India agreed to it. It was difficult, but he later agreed.<\/p>\n

“If I had suddenly agreed to pay Rs. 150 million, it would have raised suspicions, but there was no problem on that score. The director said the transaction should be finalized in Singapore. I replied that it was not possible for me to go that far. Then he suggested the car park of a five-star hotel. I pretended to like the idea. I booked two hotel rooms.<\/p>\n

“In the meantime, I inserted a newspaper advertisement to recruit two workers for the company. Two bribery sleuths joined the company in response to the ad, as arranged. They hovered around me all the time. Several customs officers visited my office many times to discuss the modalities of the transaction. Each time they came, the two bribery men were in the vicinity. The Customs director called me one day and suggested that they have a lawyer in Borella and the transaction can be completed there.<\/p>\n

“It was now three weeks since the Bribery Commission was informed about this matter. The progress was successful so far. We organized the Rs. 125 million in cash and I called the director and told him that as the amount involved was big, I cannot take the cash to various places and suggested that the transaction be done in the office of my shop itself. He agreed and October 12 was decided on to finish the job. But, as they had some other work, the meeting was postponed for the 15th.<\/p>\n

“The Customs officers harbored some fear. Around 4 pm on October 15, three Customs officers came to my office. They had come on earlier occasions also to discuss the transaction. I showed them the cash and they underwent a sudden transformation. They forgot about the five-star hotel car park and the lawyer\u2019s place suggested earlier. The two bribery officers who \u2018worked\u2019 in the office also hovered around within sight of what was happening.<\/p>\n

“The Customs officers were not suspicious as they had seen these two “employees” during their earlier visits to my office. As planned, an official of the Indian company was also there but left shortly after he was introduced to the Customs men.<\/p>\n

“At that point, I called one of the Bribery Commission “workers” and said “Malli, count the money and give it to these three gentlemen”. The three Customs men interjected that they will count the cash and started on the job. There were around 40 bribery officers hanging round my shop, which was under surveillance.<\/p>\n

“Not even a minute passed by when they started counting the cash, the three Customs officials were arrested. They sat frozen. One of them fainted as around 40 bribery sleuths swooped down. I allowed them to do their job and got to a side. After some time, one of the Customs officers came near me and said “We made a mistake. There was no tax fraud here. Don\u2019t get angry with us. Ask them to take us out without handcuffing. That was done.<\/p>\n

“They were not handcuffed until they were put into a vehicle. before the operation began, the DG asked me not to use cameras and also not inform the media. I am not keen about what happens after they were taken away from my shop. But, it was not possible to trap the two directors who were the brains behind this attempt to extract a huge bribe.<\/p>\n

“These two directors had been in the vicinity of my shop when the other three had come in to collect the cask, but the bribery officers could not arrest them. That was a small lapse. Parakrama Perera, who was amongst the Customs officers arrested is an assistant of one of those directors. The other two are Upali Perera and Jagath Wickremasinghe. One of the directors who could not be arrested came to the Ekala office one day to discuss this transaction.<\/p>\n

“Before this operation began, I sent my family on a pilgrimage to India. Two office workers also joined them. It was in their place that the two bribery sleuths were recruited. My family is unaware of these developments as they are still abroad. I resolved to face what may come when I tipped off the bribery people. If it had backfired, I may not have been alive today.<\/p>\n

“One of the Customs officers involved has direct links with the underworld. I was aware of it. That\u2019s why this was planned meticulously. I didn\u2019t even use a driver during the planning stage. Only the Bribery DG, two other officers and I knew about this operation. Until the last moment, even the other bribery officers didn\u2019t know the exact details. The two bribery “employees\u2019 also didn\u2019t know the full story until it happened.<\/p>\n

“We worked hard and it was finally successful. Some Customs officers personally congratulated me for my role in stemming bribery. There are fine officers in the Customs. All of them are not rogues and cannot be tainted with the same brush. Many of these senior officers are known to me because I have been in business for decades. I started small, amidst much difficulty and climbed up the ladder the hard way. I used to hand carry some goods through the Customs at first. That\u2019s how I started and they know how much I suffered to develop my business”.<\/p>\n

“The SLTB started making profits after Steel Impex came into the picture. Spare parts whether in Colombo or Jaffna were procured at the same price. Quality improved. Some people were furious they could not rob any more. Their sources of income dried up. So, they started sending petitions hoping that the situation will change and they can embark on their robbing spree again”.<\/p>\n

Courtesy:Sunday Island<\/em><\/p>\n

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The recent arrest of three Customs officers who allegedly solicited and accepted a Rs. 125 million bribe from a spare parts importer in Colombo hit the headlines. It was described as the biggest-ever detection made in the history of the Bribery Commission. “Sunday Island”s sister paper “Sunday Divaina\u2019 spoke to the importer, who tipped off …<\/p>\n

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