Gold fragment export racket with official involvement busted
A massive racket of exporting millions of rupees worth gold mixed soil, a byproduct of the jewellery industry with the support of errant officials, has been busted, a recent government audit inspection revealed.
The racket has been uncovered after tests were conducted on soil samples from 23 containers that were detained by the Customs.
Gold Mixed Soil Wastage of Goldsmith Burnt Residue from jewellery manufacturing institutions had been exported to several foreign countries declaring to customs as soil by three private companies instead of extraction of gold from the soil, a senior Customs official said.
Fifty one containers loaded with these materials had been already exported to countries including India through clearance of the Sri Lanka Customs.
Another 23 containers about to be exported has been taken into the custody of the Sri Lanka Customs.
Customs inspections had been completed relating to four containers out of them and penalties imposed thereon for submitting forged documents indicating the stock of gold pieces mixed with soil as Goldsmith Burnt Residue.
Moreover, customs inspections are being carried out for the remaining 19 containers.
A businessman, said to be a relative of a powerful Tamil Nadu politician, has come to the country and attempted to clear the balance 19 containers, a senior Customs official said.
The Geological Survey and Mines Bureau had been informed that the Customs with the powers vested in the agency by the Customs Ordinance is taking steps to release the 19 containers with gold mixed soil.
When this was underway, top officials of the Geological Survey and Mines Bureau took quick action to inform the Secretary to the Ministry of Environment and Mahaweli Development.
The relevant officers and the Presidential Secretariat have been informed on the matter and steps have been taken to stop the shipment of the containers.
The export process carried out without the approval and license of the Geological Survey and Mines Bureau and exportation of the stock of material without objections by the Sri Lanka Customs on previous occasions had been contentious, the audit inspection observed.
An audit examination was conducted to find out as to how far the Sri Lanka Customs and the Geological Survey and Mines Bureau are involved in this process.
The irregularities allegedly committed by the Sri Lanka Customs and the Geological Survey and Mines Bureau have failed in the proper implementation of necessary provisions in accordance with the Mines and Minerals Act, No.33 of 1992, the audit report disclosed.
Deficiencies in the systems and controls of the two state institutions as well as the failure in coordination between the institutes had supported the export of Wastage of Goldsmith Burnet Residue in this manner, the audit inspection determined.