COPF questions Finance Ministry on action taken to recover loss incurred by ‘Sugar Tax Scam’

The Committee on Public Finance (COPF) has questioned the officials representing the Ministry of Finance regarding the action taken to recover the loss incurred by the Sugar Tax Scam in Sri Lanka, while expressing its displeasure as the Ministry of Finance has failed to take action in this regard as yet.
 
The matter arose at the meeting of the Committee on Public Finance held recently in Parliament under the Chairmanship of Pro tem chair Patali Champika Ranawaka, in the absence of its Chair Dr. Harsha de Silva, the Parliamentary Communications Department said.
 
The Committee questioned why the Inland Revenue Department in consultation with the Attorney General has not yet taken action in this regard.
 
Accordingly, the officials present in representation of the Ministry of Finance stated that they have been updating the Committee on Public Accounts regarding the progress and that the Attorney General’s Department has advised that as there was a case pending in this regard, proceeding forth would follow post the determination.
 
The Committee then inquired whether action could be instituted if the relevant parties withdraw the pending case in court. Accordingly, the Committee requested the Attorney General’s Department to have the Committee informed regarding the stated concern with immediate effect, it mentioned in a statement.
 
The Committee also raised concerns over the failure of the Ministry to have the Committee informed regarding the issues raised previously pertaining to the Regulations published in the Gazette issued under the Regulations under the Imports and Exports Controls Act on wheat flour.
 
Furthermore, the Regulations under the Imports and Exports Control Act, No. 1 of 1969, published in the Gazette Extraordinary No. 2336/45 which was presented to Parliament on 18.07.2023 taken up at the Committee on Public Finance dated 21.07.2023, was also taken up for discussion.
 
The pro tem Chair Patali Champika Ranawaka stated that unless the order process of wheat flour has begun, license for the importation of wheat flour is restricted and the present context has created a flour duopoly. The Committee inquired the action and progress on this regard, the release added. 
 
Moreover, the Committee took into Consideration the Appropriation (Amendment) Bill 2023 and was approved by the Committee. The borrowing limit of Rs.4,979 billion has been increased to Rs. 13,979 billion under the Appropriation Act No. 43 of 2022.
 
Accordingly, 9,000 billion rupees for re-issuance of debt ceiling needs has been revised. As a provision to the Department of Treasury Operations for repayment of loans Rs. 4,222.23 billion to Rs. 13,222.23 billion expenditure limits will be increased by amending sub-section 2 (4) of the Act and the Second Schedule.
 
State Minister Dr. Suren Raghavan, Members of Parliament Dr. Major Pradeep Undugoda, M. A. Sumanthiran, Isuru Dodangoda, Dr. Kavinda Jayawardhana, Duminda Dissanayake, Rauff Hakeem, Premnath C. Dolawatte, Harshana Rajakaruna, Madhura Withanage, Weerakkody, Mayantha Dissanayake were present at the Committee meeting held, according to the Parliamentary Communications Department.