VAT scam: CID on look out for nine more suspects

Sarath Malalasekera

COLOMBO: The Criminal Investigation Department (CID) probing the massive VAT scam at the Inland Revenue Department yesterday told the Colombo Fort Magistrate and Additional District Judge Namal Bandara Balalle that they are looking for nine more suspects who are alleged to have been involved in the VAT scam.

The CID told court that they are making arrangements to obtain the assistance of Interpol in connection with the suspects who had left the country and are now living abroad.

Judge Balalle refused bail for the seven suspects including a Senior Officer attached to the Inland Revenue Department who were remanded earlier in connection with the VAT scam and further remanded them till May 23.

The suspects are Gnanasiri Soysa Jayatilleke, Senior officer attached to the Inland Revenue Department, Colombo businessman Sinnaiah Subramanaiam, Mohamed Hussain, Mohamed Milshan, W. Ambepitiya of the Inland revenue Department and leading businessman Ashrof Hadjir.

The suspects were not produced before court yesterday for security reasons.

Earlier Judge Balalle ordered the Prisons authorities to produce the suspects before the Magistrate court situated in the prison premises.

The CID commenced investigations on a complaint by the Inland Revenue Department based on a report submitted to the Inland Revenue Department by the Auditor-General in connection with a criminal misappropriation of Rs. 35,772,868 the money accruing from VAT.

The CID told court that they have perused the forged documents forwarded to the Inland Revenue Department to release the VAT money from the department.

The investigations also revealed that a senior officer of the Inland Revenue Department had authorised the VAT money to be released to the businessmen without perusing the relevant documents.

The money had been obtained from the Inland Revenue Department on several forged national identity cards.

Twenty NIC’s were submitted to the Inland Revenue Department but 19 of them were forged, the investigators said.

President’s Counsel M.L.M. Ameen, President’s Counsel Mohan Peiris, Kalinga Indatissa, Shanaka Ransinghe, K.V. Thavarasa, Nishada Gamage, M. Biswa, Shiraz Noordeen and Prasanna Weerasekera appeared for the suspects.