VAT case: Eight sentenced for 20 years RI in absentia 

Jayatilake-September 27, 2014

Colombo High Court judge Kumudini Wickramasinghe yesterday sentenced eight accused convicted in the VAT case, in absentia, to 20 years rigorous imprisonment. The sentences imposed on several charges they faced are to run concurrently.

The convicts were charged under the Public Property Act. Senior State Counsel Shanyl Kularatne prosecuted.

The convicts were also fined three times the amount they had defrauded.

Mohamed Kamil Kuthubdeen found guilty of having defrauded the government of Rs.1,822,301,753.76 was fined Rs.5,466,905,261.28; Rasheed Mohamed Mursheed who defrauded Rs.2,117,062,596.40 was fined Rs.6,361,187,789.20; Bakeer Mohamed Rifaz alias Riyas who defrauded Rs.3,680,641,111.65 was fined Rs.11,041,923,334.65; A. S. M. Awamy who defrauded Rs.251,302,387.60 was fined Rs.753,907,162.80; M. M. A. Irshad alias Mohamed Naseer Cader who defrauded Rs.1,187,762,968.11 was fined Rs.3,563,288,904.33; N.A. Mohamed Nasmi alias Abdul Ibrahim who had defrauded Rs.831,807,226.80 was fined Rs.2,495,421,680.40; A. W. M. P. Safie alias Meera Sahibo Liyakath Ali who had defrauded Rs.208,678,248.95 was fined Rs.626,034,746.85 and M. K. M. Sakine who had defrauded Rs.29,900,194 was fined Rs. 89,700,584.40.

High Court Judge Kumudini Wickramasinghe directed the CID to seek the assistance of Interpol to arrest the convicted persons. She also directed the CID to check the assets belonging to them both here and abroad.

The case was postponed for October 3. Former Deputy Commissioner of Inland Revenue, Gnanasiri de Soyza Jayathilake was sentenced in May this year to 102 years in prison (to be served concurrently in three years) after he had pleaded guilty in the Rs. 4 billion VAT fraud case. Jayathilake had valuable assets in Colombo 7, Nawala, Kollupitiya and Kurunegala the Court was told.

Colombo High Court Judge Kumuduni Wickramasinghe imposed a fine of Rs. 12 billion on the accused. This is considered the biggest ever fine imposed by a Sri Lankan Court.

Of the 13 suspects who were prosecuted, eight reportedly fled the country at the beginning of the trial and only five appeared before the courts. Verdict was delivered against four of them in a previous trial after they had pleaded guilty. Accordingly, Gnanasiri de Soyza, the only suspect who remained, also pleaded guilty during the trial.

The main charge against the convict included conspiring to misuse money belongs to the Department of Inland Revenue, misusing the tax income and supporting such a scam together with Dharmadasa Wattalagedara in Colombo between November 15, 2002 and December 15, 2004. The case was heard for nearly six years whilst the suspect was indicted on 34 charges. He was sentenced to three years rigorous imprisonment on each count.