Probe on luxury cars held up in Port

The Ceylon Electricity Board (CEB) is to carry out an inquiry into the import of two luxury vehicles using tsunami funding money, CEB General Manager D R Pullaperuma said. Last week The Sunday Times reported that the two luxury vehicles imported by the CEB using money from a tsunami relief fund was lying in the Port with the CEB unable to pay a staggering Customs duty of Rs. 23 million.

The two luxury vehicles were imported to be used for a transmission project despite the Treasury in its guidelines notifying that the money cannot be used such purposes. The money has to be fully utilized for the said project, making allowance to purchase vehicles for transportation and other heavy load construction work.

Mr. Pullaperuma told The Sunday Times that purchasing luxury vehicles from the tsunami fund was ‘an unfortunate lapse’ on the part of the CEB Communication Division and the Board members who held the posts during that period. “At present we can’t find fault with one party. That is why we have initiated an inquiry into this. It must be stated that getting down such vehicles for this project has become an issue as it tsunami funds were used. There are four Regions with four Additional General Managers, but it had been overlooked.

“The Communications Division should have looked into the matter. An inquiry is under way,” said Mr. Pullaperuma. In response to the news item Mr. Pullaperuma, in a letter to this newspaper last week, said neither the Technical Evaluation Committee nor the Tender Board were aware of the Customs duties imposed on these jeeps which are classified under the luxury cars category.

“The cost of these vehicles as reported is only Rs. 2.4 m. per vehicle which is comparable with vehicles imported by the CEB for other purposes. However, since this vehicle had been categorized under luxury cars, the duty assessed was Rs. 10.8 m. per vehicle.

“It is also pertinent to state that the duty percentage has been increased since the decision has been taken to procure these vehicles in 2005,” the letter said. The two vehicles arrived in the country last week. However with the Customs duty assessment given as Rs. 23 m. there was a delay in making the payment. The CEB is making arrangements to clear it from the Port.