Sugar duty scam: Bandula misses CIABOC summons, asks for another day

Media and Transport Minister, Bandula Gunawardane,has asked the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), which is inquiring into massive revenue losses suffered in 2020/2021, owing to an alleged sugar tax scam, to give him another day to appear before the Commission.

Sources close to the Minister told The Island that the former Trade Minister had been informed of the CIABOC summons at the last moment, hence his inability to provide a statement. Earlier, the CIABOC said that lawmaker Gunawardane was asked to come on Monday (19).

State Finance Minister Ranjith Siyambalapitiya, on Nov 09. informed Parliament that the Treasury had suffered losses amounting to Rs 16 bn due to the unprecedented reduction of duty on a kilo of white sugar from Rs 50 to 25 cents, with effect from Oct. 13, 2020. The SLFPer said that the Treasury could recover only 30 percent of the Rs 16 bn loss.

Lawmaker Siyambalapitiya assured Parliament that the government would ensure such unilateral decisions couldn’t be taken in the future. Authoritative sources told The Island that the then Presidential Secretary, Dr. P.B.

Jayasundera, had been questioned in this regard. The one-time Secretary to the Treasury has told investigators the President cleared the reduction of duty on sugar.

Then Prime Minister Mahinda Rajapaksa served as the Finance Minister, at the time, whereas Ajith Nivard Cabraal held the State Finance portfolio. S.R. Attygalle served as the Secretary to the Treasury. The SLPP government increased the duty to Rs 50, in May 2020, a couple of months before the general election.

CIABOC would seek clarification from Minister Gunawardane as regards his disclosure, in Parliament, on Dec. 09, that those who spoke on behalf of sugar racketeers had the ear of then President Gotabaya Rajapaksa.

Minister Gunawardane said that in spite of him being the Trade Minister, he was not consulted at all and his strong opposition to it was disregarded by President Rajapaksa. Responding to SLFP General Secretary, Dayasiri Jayasekera, MP, lawmaker Gunawardane claimed that inimical decisions were taken by ‘advisors’ at the expense of Ministers who lacked authority.

CIABOC has so far recorded statements from over 30 persons, in respect of the high profile investigation, launched, following complaints received from Samagi Jana Balavegaya MPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake, and public interest litigator Nagananda Kodituwakku.

The Island learns that the CIABOC is also contemplating to obtain a statement from former President Gotabaya Rajapaksa in this regard. Sources said that a clarification was required as some of those who had been questioned over the issuance of the relevant gazette by the Finance Ministry claimed they received instructions from the President.

Former Chairman of the Public Finance Commission, Anura Priyadarshana Yapa, is on record as having said that the reduction of duty on sugar didn’t benefit the consumers at all. (SF)