The Hon. S.M. Marikkar

¶ 01 Hon. Presiding Member, when we critique the Budget and other matters, the Leader of the House says we are scolding.

¶ 02 Yesterday the Prime Minister said I kept repeating one point. In the Second Reading debate we spoke on the whole Budget. Even if it is one issue—if it is not acted upon—we must repeat it.

¶ 03 I speak today for the fourth time in this House about frauds in importing crude coconut oil and reprocessing for the market. I gave details to Minister Wasantha Samarasinghe; I was not satisfied with the reply, hence I reiterate. From 1 January last year to 1 January this year, about 42 million kilograms of coconut oil were imported. The tax due on these oils is over Rs. 6 billion. The President, as Finance Minister, said here that last year Inland Revenue fell short of its target by Rs. 20 billion. Why then is this Rs. 6 billion not collected?

¶ 04 Because last July 31, the then State Minister of Finance requested this tax be removed. Thereafter, on 29 August last year, the Inland Revenue Department wrote to the Department of State Fiscal Policy saying 20.5% must be paid—1% CESS at 18 and this tax. I asked the Hon. Prime Minister on 7 February; she gave a clear, satisfactory answer. I thank her. But even after a month and a half, no effective action has followed. Please look into it. You answered correctly, but the system is not following through.

¶ 05 After your answer, the Ministry of Industries is “investigating,” but they are focusing on local coconuts and coconut oil. For imported coconut oil, Customs levies one tax, but when refined and sold domestically, the full tax is due to the Finance Ministry. I hear a certain Deputy Minister is meeting all the buyers to see if this can be reversed. Some have already paid; they ask whether their tax will be refunded. According to IRD this tax must be paid. Why is it not being collected? The bond scam loss was Rs. 108 billion; now 13 months of coconut oil tax evasion is Rs. 6 billion. I wanted to ask the State Minister of Finance—why the Ministry is not issuing instructions. Perhaps he is unaware. Chief Government Organizer, please bring this to his notice. We are helping the Government, not just criticizing. This started under the past Government; but this one is continuing it. The President has been in office eight months—10% of his term is over.

¶ 06 The Minister of Power and Energy is here. Please look into Lanka Coal Company. What is happening there? To my knowledge, a person who sat in the UNP’s business council is there; along with his golf partners, what deals are being made? Please check. The current appointee you placed is an old UNPer; that is why I say look into it.

¶ 07 Hon. Prime Minister, during the crisis there were major frauds at Shell Gas. A cargo that should have been purchased at about USD 104 was taken at around USD 129. As a COPE member, I repeatedly requested in writing to summon their officials; they were never produced. I know it was delayed with blessings from the top. Because big vessels could not berth, they used small vessels with premiums. If done once to avoid demurrage, fine; but it continued. Please conduct a formal inquiry and find who took commissions. It is not your fault; it happened under the previous Government. But COPE was denied officials.

¶ 08 To the Power Minister: during the crisis, oil was brought under NRR—the Ceylon Petroleum Corporation, the importer, and Central Bank together. Example: an importer is given an order for USD 50 million, asked to remit 10%—USD 5 million—but the Central Bank says it has no dollars and can only remit USD 5 million. Then a second supplier comes and says, “I will bring oil at my price,” and in the name of avoiding demurrage, approval is given. A month later when the vessel arrives, the Central Bank that could not remit USD 5 million now pays USD 50 million in a month—by loading rupees from CPC. How? Brent crude was said to be brought, but Siberian ships came. Under the guise of crisis management, many such cases arose. If you have no deals with former Presidents, please pursue these. Petroleum deals were run from the mansions, beyond Ministerial offices. How did they import oil under 14101, cancel tenders, purchase by emergency for years? Please find out.

¶ 09 I have more, but I give the rest of my time to Hon. Kabir Hashim. We are pointing out shortcomings, not just criticizing. Thank you for the time, Hon. Presiding Member.