Top politicos behind 2,000 liquor dealers

FCID, Excise Dept. probe illegal transfers of licences, tax evasion and other frauds

The Financial Crimes Investigation Department (FCID) is probing some 2,000 alcohol dealers to identify proxies of VIPs and politicians allegedly involved in a monopoly of the trade, senior Excise officials said yesterday.The Excise De- partment last week handed over to the FCID a list containing the names of more than 2000 alcohol dealers operating with an F-L-4 licence (wine shops) in all parts of the country, they said.

A key issue under probe is the monopoly of the alcohol trade both in the retail and wholesale market where certain affluent individuals buy up other small operators for a substantial fee, according to the officials.

The transfer of a licence from one individual to another costs about Rs. 500,000 or more depending on the volume. At present an individual is allowed only three licences.

The officials said several politicians, including former MPs, were also known to be in the alcohol trade, operating bars and wine stores with the help of proxies -- mainly close relatives and confidants.

Two former Cabinet ministers have already been identified as being directly involved in the large-scale trade of alcohol products with the help of front individuals.

Earlier this year, a close relative of a former top minister was fined Rs. 21 million for violating licence regulations governing transport, storage and sale of alcohol products.

Investigators found that the relative was a mere sleeping partner domiciled in Britain, while the former minister was allegedly the proprietor of the distillery in the North Western Province.

A stock of finished alcohol products were seized by police from a warehouse in Dematagoda barely nine days after the Presidential Election on January 8.

The alcohol stock had been moved out hurriedly to Dematagoda as the politician apparently feared reprisals after the presidential poll.

Public Law and Order Minister John Amaratunga said the FCID had been tasked to look into the issue with an open mind since there were several irregularities where certain politicians might also be involved.

He said the probe would also centre on the manufacturers and the source of raw material to ascertain if the finished products were completed in keeping with regulations.

“Tax evasion is another issue and both the FCID and the Excise Department are looking into it,” the Minister said.