News
CID probes elaborate hoax to blacklist competing company
The Criminal Investigation Department (CID) has launched a probe on a complaint that a company had mounted an elaborate scam to ensure a competitor was blacklisted following a Police Department tender for breathalyser test kits.
The complaint was lodged by Lanka Industrial Services (Pvt) Ltd.
The CID informed the Colombo Chief Magistrate’s Court that the complainant had been contacted by a company claiming to be based in the US and also having a branch in France. This company had claimed to be a manufacturer of breathalyser test kits in keeping with international standards. It had agreed to supply Lanka Industrial Services (Pvt) Ltd with its products. Following this, the Sri Lankan company had applied for the tender.
The Lankan company, however, later became suspicious, and inquiries revealed that the foreign company did not exist and even its website was fake. Lanka Industrial Services (Pvt) Ltd then contacted the Police Supplies Division, withdrew from the tender, and lodged a complaint with the CID.
CID inquiries have revealed that the scam had been engineered by a local competitor of Lanka Industrial Services (Pvt) Ltd and has identified a suspect. The CID told court that the suspect ran two companies registered under different names that regularly bid for such tenders floated by state-owned institutions.
Detectives have also sought help from law enforcement agencies in the US and France and informed court that it was continuing investigations to arrest all those involved in the crime.
Meanwhile, police have also initiated a separate inquiry to identify whether similar incidents had occurred in the past where companies who bid for tenders had fallen victim to such tactics.
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