Two VAT scam accused imprisoned in Sri Lanka

Two accused, in the Rs3.9bn (Dh113.17m) VAT scam, were sentenced to imprisonment by Colombo High Court Judge Kumudini Wickramasinghe after they pleaded guilty.

A local newspaper reported that businessman S M Azad and former Assistant Commissioner of Inland Revenue Ananda Ambepitiya were indicted with VAT fraud of Rs3.9bn.

Ambepitiya has been fined sixty million rupees and was sentenced to 24 months imprisonment while Azad was jailed for 14 months and fined five million rupees.

Magistrate ordered to confiscate the properties of the accused if they fail to pay the fine.

During 2002 to 2004, rebates had been granted to companies registered as garment factories, which were later found to be bogus.

Earlier, three other accused, were sentenced to rigorous imprisonment and fined, after pleading guilty.

Attorney General also indicted fourteen officers of the Inland Revenue Department and businessmen. Six of the accused were remanded while the rest had fled the country.

Open warrants have been issued for the arrest of the eight suspects who have gone into hiding abroad.

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