Legal Action Slow Against Ethanol Mafia

Addi
tional Solocitor Generals letter to Customs Department that they will not appear for the Customs Director, Government Analyst
report that shows that the ethanol that was illegally imported contains 95% of Ethyl Alcohol and Superintendent of Custom
D.P.M. Gunawardenas report that states how Jayalath threatened the
Customs Officers

by Nirmala Kannangara-Monday, October 05, 2015

With the exposure of how certain UPFA politicians were involved in the illegal
importation of ethanol to the country, action is yet to be taken by the Attorney
Generals Department against them as revealed by Finance Minister, Ravi
Karunanayake, recently. Startling revelations have come to light as to how one of these
accused parliamentarians, who now holds a portfolio in the new government is
continuously involved in the illegal ethanol importation racket and also allegedly
avoiding the payment of Customs duties when importing certain other goods.
Kachchkaduge Arundika Wickramarachchi Fernando, alias Arundika Fernando, who
holds the portfolio of Deputy Tourism and Christian Affairs Minister, and Muttiah
Sasidharan, brother of former Sri Lankan spin bowler Muttiah Muralitharan, together
with some of their partners are accused of importing ethanol in an illegal manner over

the past few years depriving the country billions of rupees in way of taxes during the
former Rajapaksa regime.
Penalised by Customs
The Sunday Leader newspaper is in possession of documents to prove how allies of
Deputy Minister Arundika Fernando and Muttiah Sasidharan were penalised by Sri
Lanka Customs and had later released the consignments back to the importer.
If the investigations reveal that the importer had defrauded the Customs, the
consignment has to be forfeited, if not it has to be charged thrice the amount of the
value of the goods imported? one of the Customs sources said.
According to Finance Minister, Ravi Karunanayake, the government has not received
any support from the judiciary or from the Attorney General, to which The Sunday
Leader has documents to prove the Finance Ministers claim.
When a consignment of ethanol imported as Propylene Glycol by D.P. Jayalath
Krishan Peiris, was detected in 2010 by the then Director (Preventive) Revenue Task
Force (RTF) K. Ranjan, the accused who was carrying out the illegal importation
together with MP Arundika Fernando in order to obstruct the investigation, had
sought the court approval to get the goods released stating that the Director
(Preventing) of the RTF had detained the cargo due to a personal grudge. In his
affidavit, the accused Peiris had explained, this personal grudge was due to voting
against the Director Preventing for the post of Chairman in the election held at
Gymkhana Club a few years ago.
Although the then Government Analyst, T.R.N.M. Liyanarachchi, in a letter dated
January 7, 2011 to the Superintendent of Customs had stated that the detected
consignment of ethanol contained 95 per cent of Ethyl Alcohol, when the Customs
Department requested the Attorney Generals Department to appear for the Director
Preventive in the case the accused had filed, the then Additional Solicitor General
Y.J.W. Wijayathilake who is now the Attorney General in a letter dated March 3, 2011
to the Director General of Customs had informed the Customs Department that it
would be inappropriate for the Attorney General to appear for Director Preventive K.
Ranjan as the allegations leveled against him are personal in nature and that he should
be permitted to retain private Counsel to counter the allegations made against him if
they are untrue.
Consignment detected
The consignment was detected and detained by the then Director Preventive RTF and
it was proved that the said imported Propylene Glycol was ethanol and it contained 95
per cent Ethyl Alcohol by the Government Analyst. The importer may have had a
grudge with our Director Preventive at that time but this officer did not detain this
consignment for a grudge but since the stock was not Propylene Glycol which is a
chemical to manufacture paint but Ethyl Alcohol. It was so surprising as to how the

then Additional Solicitor General without considering the Government Analyst report
accepted the accused affidavit and informed the Customs Department that the
Attorney Generals Department will not appear for the public officer in courts. When
the Attorney Generals Department is there to appear for public officers this course of
act by the Additional Solicitor General was dubious, sources added.
Sources further said how the accused Jayalath Peiris when produced before Acting
Magistrate Colombo Magistrate Court No:3, by the Customs Official was released on
bail and sent home wanting him to come back two days after (the following day was a
government holiday) to sign the bail papers.
As rightly stated by our minister Ravi Karunanayake, the Judiciary too was not
helpful when tried to bring crooks to book as there are many instances where the
suspects who defraud the customs department are political stooges. In this particular
instance since Jayalath was interfering with the investigations, sources claimed.
Under section 127 A of the Customs Ordinance the Director-General is of the opinion
that such a capable of interfering with the investigation or that the nature of the
offence is such that it is desirable to keep that person in custody for the proper
investigation of the offence for more than 24 hours, he shall produce such person
before a Magistrate.
Under Section 127 C, no person suspected or accused of an offence under the Customs
Ordinance in respect of any goods the value of which exceeds one million rupees, shall
be released on bail except by the High Court, in exceptional circumstances. The power
conferred on the High Court by this section shall be exercised by the Judge of the High
Court held in the Zone within which the accused resides or the Judge of the High Court
held in the Zone within which the offence is alleged to have been committed.
However, when Jayalath was produced before the Acting Magistrate, he was given
bail at once and released immediately wanting him to come back in two days to sign
the bail papers, sources added.
Sources further alleged as to how the Customs officers wanted the magistrate when
Jayalath came to sign the bail papers objected in granting him bail as he was
interfering with the investigation process.
The report dated January 23, 2014 by D.P.M. Gunawardena, Superintendent of
Customs in a report on complicity of Jayalath Peiris and T.S.I. Silva two of the accused
penalized in ethanol smuggling cases clearly states as to how Jayalath threatened the
Customs officers who were conducting the investigations.
The report states as thus, Jayalath had been in remand in connection with an illegal
importation of ethanol consigned to one of his companies called Network Seven (Pvt)
Ltd and detected by the RTF. Customs officers at RTF had reported to the Hon.
Magistrate that Jayalath threatened them to harm their lives and firearms have been

obtained by these officers for their personal safety. Present DGC Jagath Wijeweera is
well aware of this incident as he was informed in writing about this matter when
Pradeep Nanayakkara brother-in-law of Jayalath abused the Customs Inquiring officer
inside the CIB office in the presence of Jayalath when the Customs inquiry was in
progress.
Nabbed twice
However, on later occasions to Jayalath Krishan Peiris had been nabbed twice by the
Customs Department for importing Ethanol but declaring the consignments as Palm
Oil where on one occasion he had to pay a penalty of Rs. 15 million, it is learnt. The
Customs investigations have meanwhile unearth how parliamentarian Arundika
Fernando was working hand in glove with Jayalath Peiris and how this MP too were
involved in this illegal ethanol importation.
This Parliamentarian is not only involved in this illegal ethanol importation but
defrauding the customs in importing other goods as well. In 2013 the customs detected
a container bearing number APZU 4249623 containing urinal sensors imported by Ms
Senura Trading (Pvt) Ltd by under valuing the consignment. MP Arundika Fernando
(NIC 712592435V) of No: 65, Wallwatta, Dankotuwa is a Director of the said Senura
Trading from July 6, 2013, sources said.
According to sources, in 2011, 28,800 litres of ethanol had been smuggled by Jayalath
Peiris (Customs case no: CIU/ INV/ 01/ 2011) and has forfeited the stock and had
imposed a penalty of Rs.Rs.5 lakhs.
Meanwhile, Axis Industries (Pvt) Ltd is allegedly another Ethyl Alcohol smuggling
company which is evident that nothing other than alcohol had been imported under
this company.
Tharun Sameera Indika Silva is the Secretary of Axis Industries who has admitted that
he obtained the said company registration on the request of on the request of Ranga
Samarakkody and arranged a loan of Rs.9.4 million from Muttiah Sasidharan.
Meanwhile, it had been proved with bank certified true copies of statement of accounts
that Muttiah Sasidharan is a business partner of the alleged ethanol smuggler Jayalath
Peiris who is also one of MP Arundika Fernandos partners. As per current and savings
account details of Jayalath Peiris transaction to the tune of millions of rupees have
taken place between Peiris and Sasidharan during the period when outward
remittances had been established through the same bank for Ethyl Alcohol
consignments.
According to Customs details, in 2012 33, 250 litres of Ethanol imported by Indika
Silva who is working hand in glove with Sasidharan had been detained (customs case
no: STVD/ 2114/ 2012). This consignment had been released after imposing a penalty
of Rs. 11.974 million. Another 33, 250 litres of Ethanol had been imported in the same

year by the same importer Indika Siva (customs case no: PREV/ FPO/ 2246/ 2012)
and the consignment had been detained. Meanwhile a stock of 40, 000 liters of
Ethanol illegally imported by Ranga Samarakkody who too is doing businesses with
Muttiah Sasidharan was detained and was later released after imposing a penalty of
Rs. 13.65 million.
Meanwhile, Customs officials had appealed to the Finance Minister Ravi
Karunanayake under whom the Customs Departments comes to bring new regulations
to take legal action against the illegal ethanol importers.
If the law is so strict to arrest the drug smugglers or even against drug dealers, why
cannot new regulations under the Good Governance rule impose such laws against
the illegal ethanol smugglers? By imposing a penalty and release the smuggled ethanol
is not sufficient nor by forfeiting the stocks and auction them to the excise license
holders is not sufficient. Also new laws should be introduced so neither the police nor
the Judiciary and the Attorney Generals Department can be biased, sources claimed.
Sources further said as to how the Officer in Charge of the Fort Police once wanted a
Customs officer to come and give a statement for a complaint lodged by an ethanol
smuggler.
The police has no powers to ask a customs officer to give a statement against a
complaint lodged by a ethanol smuggler. The protocol is to for the OIC to inform the
IGP and the IGP to make a request to the Director General of Customs to ask the
customs officer to come and give a statement to the IGPs office.
These are a few cases where the courts, the Attorney Generals Department and the
police had taken sides of politicians and acted against the customs department
preventing to bring the crooks to book, sources said.
Meanwhile, Finance Minister, Ravi Karunanayake said that the appalling situation that
prevails will be verified soon.
We cannot allow these rackets to be continued. We are now in the process to intensify
against these camps- in the judicial system, in the Attorney Generals Department and
even in the Customs. After this government came into power we have been able to
curtail these frauds to a certain extent and have recovered millions of taxes comparing
to last year, Karunanayake said.
Posted by Thavam