COLOMBO: Customs officers have seized documentation relating to the import of duty-free liquor by the State Trading (General) Corporation, a venture under the Industry and Commerce Ministry, following suspicions that foreign alcohol products had been smuggled out to be sold to unauthorized persons at a hefty margin.
The STC sells imported booze at duty-free rates to foreign missions, diplomats and UN offices based in Sri Lanka through its duty-free complex in Colombo 2.
Amidst allegations that this restricted facility may have been abused with stocks of foreign liquor reaching the wrong hands, Customs have taken over for examination documents relating to STC’s procurements, stocks and sales, officials said.
“The investigation is still ongoing”, says Customs spokesman, Leslie Gamini.
The STC operated duty-free shop is legally mandated to sell imported liquor only to foreigners who enjoy diplomatic status in the country, he noted. “We are trying to ascertain whether anything contrary to the stipulated procedure had occurred”.
According to the rules, stocks of liquor are issued on the basis of an official letter from the respective Embassy, High Commission or UN Office. In the case of individual diplomatic staff, they enjoy a US$ 250 allowance per month plus an equal entitlement to the spouse.
In addition, the head of a mission can obtain additional stocks in the event of a National/Independence Day celebration or related official ceremony.
“These formalities are sanctioned by the Foreign Ministry in Colombo”, Gamini explained.
Officials asserted that the continuing Customs probe stems from allegations that this wholly government-owned institution had also issued stocks of foreign liquor purportedly to missions, which don’t serve alcohol because of religious prohibitions.
It is still unclear whether any irregularities have been discovered, they noted.
“We are tallying invoices”, the Customs spokesman said. “It is still too early to come to a conclusion as the probe is ongoing”.
Dismissing claims that the Customs “seized” documents, STC Chairman, Hussein Bhaila said five officers had visited the duty-free complex for a stock verification.
“They had taken the fifth copy of each invoice, which, in any case was meant for the Customs”, he explained.
Asked whether it was the practice for five Customs officers to come for a stock verification, the Chairman noted that they do come on inspection, but in this case the visit was based on a petition.
“I don’t think there was anything amiss on our part”, Bhaila clarified.
He said the STC procures wholesale consignments of foreign liquor at duty-free prices and makes a sizable profit on retail sales.
Asked whether his son also worked at STC as the institution was described by industry players as a “father-son entity”, he replied, “No, he doesn’t work here, but spends a couple of hours helping me in my work. He is a distributor for Elephant House ice cream and frozen chicken”.
A former Deputy Minister, Bhaila was appointed STC Chairman by Minister Rishad Bathiudeen.
