Whoever defrauds State will be prosecuted -Senior State Counsel

Sarath Malalasekera

COLOMBO: Whoever is involved in defrauding the State and whatever their position or status in life will be prosecuted under the law Senior State Council Haripriya Jayasundera observed when hearings in connection with the VAT scam came up before Colombo Fort Magistrate and Additional District Judge Nimal Balalla yesterday.

"If any person or persons are found to be involved in the multi billion rupee VAT fraud at the Inland Revenue Department, no matter whether they are big or small will be arrested and brought before the law," Senior State Counsel said.

She said no one can escape from the wide range of investigations conducted by a special team attached to the Criminal Investigation Department (CID).

The Senior State Counsel made these observations when Kalinga Indatissa, Senior Defence Counsel for the first suspect in the case, Gnanasiri Soysa Jayatilleke, former Senior Officer attached to the Inland Revenue Department, submitted to Court that his client had only signed very few cheques, but there are several other senior officers at the Inland Revenue Department who had signed over 230 cheques in connection with the VAT refunds.

The investigators had not even questioned them. Some have already left the country, the Senior Defence Counsel said.

Senior State Counsel Jayasundera: The CID is conducting investigations. They will take into custody all the suspects who are involved in the racket. No one can escape from the investigators.

The Judge further remanded the five suspects till May 3,

At the outset Inspector P. Vishvanathan of the CID filing a further report in connection with their investigations yesterday handed over a computer disc to Court, containing all the relevant details and documents obtained from the Inland Revenue Department's VAT section.

Earlier the Judge directed the CID to take all measures to preserve every document and other relevant papers connected with the case by transferring all such documents into a computer disc and entrusted into safe custody of a responsible officer of the CID.

This is a national crime, therefore the CID should take every precaution to prevent any tampering or loss of documents pertaining to the case, the Judge observed.

On an application by M. R. Ameen, Counsel for the second suspect, the Judge directed the prison authorities to produce the suspect before a medical officer and to obtain necessary medical treatment for his sickness.

According to the investigation the amount misappropriated from the Inland Revenue Department under the pretext of VAT refunds amounted to well over Rs.357 million.

Kalinga Indatissa, Lakshman Ranasingha, K. V. Thavarasa, Deemani Beddewela, Jayantha Dias Nanayakkara, Shiraz Noordeen, A.C. Misbiah, S.A. Villavarayan, Jayaki de Alwis, S. Kalupahana, Gowri Thavarasa, Bandula Wellala, M.C.M. Muneer, M. R. Ameen, Sarath Liyanage, Indika Attanayake, M.S.M. Kamil, Ranil Samarasooriya and Hemantha Gamage appeared for the suspects.