Now go-slow for containers
It was like a traffic snarl on a Colombo highway. In view of the six-day work-to-rule by Customs unions, there was a container snarl on the road leading to the Colombo Port. As a result adjoining roads were also affected by heavy traffic jams. The Customs go-slow was called off on Friday, but clearing the backlog will continue for another week at least.
Finance Minister Mangala Samaraweera said he had withdrawn the Cabinet paper promoting Customs Director General P S M. Charles to a position in the ministry. “A normal administrative division taken at the ministry last week has been turned in to political issue by the opposition,” he claimed, at a press conference this week.
Flanked by Mrs Charles and Finance Ministry Secretary R H S Samarathunga, the trio presented a united front after several days of turmoil at the Customs Department. The Minister praised Mrs Charles saying she was “an iron lady”. He had only wanted her to man a new unit that was overseeing all revenue services under his ministry.
A “business mafia” controlled the Colombo Port, Mr Samaraweera said. While Mrs Charles had served with distinction, someone who could instill “discipline” in the Port as needed. He defended his decision to replace her with a senior ex-Navy officer.
“The best example is the pepper, dyed tobacco leaves and areca nut export business, where we lose so much of revenue,” the Minister said. There was leakage of Customs revenue and the Department needed reform. Ex- military officers are serving the country well in public and private sector roles, and even representing Sri Lanka as diplomats, he argued.
The failure to achieve Customs revenue targets led him to remove Mrs Charles, he continued, adding hastily that it wasn’t the Director Generals’ fault. Last year, the Department was set a target of Rs 1.068 trillion but achieved only 87% or Rs 921bn of it.
Minister Samaraweera dismissed allegations that a staff member had tried to influence Mrs Charles over an investigation. The loss of revenue caused by the work-to-rule was yet to be calculated, he said. The Government will not waive demurrage costs. “Ask the Customs trade unions to pay them," he said.
The Customs Ordinance is outdated and needed amendment. The Minister vowed to restructure the Department to reduce corruption and bump up revenue. New measures were being planned in this regard. They include a special committee to investigate corruption headed by a retired judge, automation of the Customs Department’s paperwork and installation of new drive-through scanners to enhance surveillance, compliance, revenue raising and security. The Minister expressed disappointment that Customs had only caught 5% of narcotics taken into custody in 2018. Mrs Charles, meanwhile, pledged to continue investigations into the pepper and dried betel nut re- export irregularities and vehicle import rackets. She will submit the outcomes to the Ministry within two months, she said, asserting that a preliminary report has already been sent.