VAT scam suspects further remanded

Sarath Malalasekera

COLOMBO: Five suspects in the massive VAT scam at the Inland Revenue Department were further remanded till October 10 by the Colombo Fort Magistrate and Additional District Judge Namal Bandara Balalle yesterday.

Two suspects in the alleged fraud case have been granted bail earlier by the Colombo High Court.

The Criminal Investigations Department yesterday told Court that they forwarded a dossier of the investigations into the VAT scam to the Attorney General for his advice.

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 living abroad.

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

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 the 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 NICs were submitted to the Inland Revenue Department, 19 of which were forged, 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.