Alleged scams of Nasser Hajjiar

The alleged multi-million rupee wheeler dealings of a billionaire businessman have come to light after the Janatha Estates Development Board (JEDB) tried to re-acquire a state owned land in Colombo 14 that it had leased out for a low cost housing project that never materialised.

The land was leased to Mohammed Nasser - a former SLFP Central Province Councillor – who had in turn leased the land to the multi-billion rupee logistics company K-Port (Pvt) Ltd. owned by Kamil Kuthubdeen one of the prime suspects in the Rs.3.57 billion VAT scam.

Mohammed Nasser popularly known as Nasser Hajjiar is reported to have approached the JEDB on numerous occasions to obtain state land for various projects. On many occasions he had reportedly approached JEDB officials to obtain state land in Nawalapitiya, Watawala and Nuwara Eliya for various projects. However, most of his proposals were turned down.
He had then eyed a four acre block of land in Madampitiya, facing the north end of the Colombo port, owned also by the JEDB.
At first when he applied to obtain the land for a low cost housing project for families of harbour workers, the JEDB had rejected his proposal on the grounds he had insufficient capital for the project.

However, in early 2002 Nasser Hajjiar applied once again but this time with a partner - Kundanmals (Pvt) Ltd. – which deals mainly in garments and textiles. The housing project of Nasser Hajjiar never materialised. A few months after obtaining the land he had reportedly leased it to the company K-Port (Pvt) Ltd. for Rs.30 million out of which he is said to have given Rs.6 million to Kundanmals.

Kundanmals Chairman Muni Kundanmal told The Sunday Times his company had got a better offer for the state land so he agreed to Nasser Hajjiar’s decision to give the land to K-Port. However, JEDB Executive Director Sarath Sudasinghe told The Sunday Times that the present board of management was not involved in giving the JEDB land to Nasser Hajjiar and Kundanmals and is now trying to take the land back.

“We have decided to reacquire the land as the housing project stated in the contract never took place,” he said.
The Sunday Times learns that Nasser Hajjiar had close links with persons such as Kamil Kuthubdeen and Rashid Murshid who are the two prime suspects of the VAT refund scam, with all of them being in the textile business.

At present the Criminal Investigation Department is on the lookout for Kamil Kuthubdeen and Rashid Murshid who are suspected to have left the country on false passports to evade arrest. Nasser Hajjiar who leased the JEDB land had reportedly struck the deal with Kamil Kuthubdeen so he could use the K-port warehouses to store the textiles he is said to have been smuggling in order to avoid income tax.

The Sunday Times learns that Nasser Hajjiar had been bribing the storekeeper of Aitken Spence to obtain textiles for a cut rate. Eventually the storekeeper had been sacked by the former chairman Michel Mack after an inquiry. It is learnt that last month Nasser Hajjiar had purchased textiles which were supposed to be re-exported from Orient Garments. The Sunday Times learns that in that transaction Orient Garments never paid VAT as the textiles were sold in the domestic market and Nasser Hajjiar did not have to pay income tax thus making a 100 % profit.

Nasser Hajiar reportedly sells his textiles in shops he has in Pettah and Kandy . Most of his textiles are sold in a shop in the name of Rezan Traders in Kandy. The Sunday Times previously reported that Nasser Hajjiar had leased another state land at Kirimandala Mawatha in Narehenpita to Kamil Kuthubdeen to establish a pharmaceutical company in the name of K-Pharma. The land in Kirimandala Mawatha was said to have been previously owned by the CWE when A. R.M. Abdul Cader was the minister, who is said to have been instrumental in Nasser Hajjiar getting the land.

The Sunday Times also learns that he had put up small shops on railway reserve land in Gampola over which Gampola station officials have complained as no widening or renovation can be carried out due to the construction of shops. It is learnt that Nasser Hajjiar had obtained approval from the local authorities to construct shops on the railway reserve land getting advances and monthly rentals from the lessees of the shops.

When The Sunday Times contacted Nasser Hajiar he said that he received approval from Ministers D.M Jayaratne and A.H.M Fowzie to construct a structure on Gampola railway reserve land to house shops. He declined to comment about his involvement with Kamil Kuthubdeen, the JEDB and on the textile business he runs.