DCSL-Customs: Have investigations been halted?

The Customs Department, it is reliably learnt, has halted investigations into the under-invoicing scandal of alcohol by Periceyl (Pvt) Ltd, a jointly controlled entity of Distilleries Company of Sri Lanka (DCSL), with the Director-General being accused of ‘being the culprit.’

The Director-General Sarath Jayatillake was unable for comment on the charge as he is abroad.

Several months ago, it was uncovered that the company had allegedly imported 135,000 litres of brandy, gin and whisky which was undervalued at a lower rate of duty. Customs sources also say it is estimated that the company has allegedly avoided paying Rs.150 million in customs duty.

Each year, approximately 150,000 litres of alcohol was being imported by Periceyl but for this year, only 60,000 litres has so far come into Sri Lanka since the June shipments were turned away. If everything was in order, the company would have brought those shipments in, said one source. The Customs probe also centered on three foreigners, employed by a French company, and the source said it is a possibility that these foreign nationals could be repatriated back to Sri Lanka to face further charges if the need arises. "We have finalized our documents and the only thing left to do is to go to France and see the shipments that are there," said the source. "We have to get certain documents and certain information from French Customs. Normally, the investigation officers are sent there." The source alleged that the Customs Director-General was refusing to send the officers to meet with French Customs and collect the necessary documents to complete the investigation.

The Sunday Times FT published documents in a previous article of interoffice memos between the French nationals written in July of 1998 which seems to show that the company used secret reference numbers for different types of alcohol although there was a claim to import ethyl alcohol.