Harry says no shandy in his deals

Hot on the trail of an alleged under invoicing racket by a Distilleries Corporation of Sri Lanka (DCSL) subsidiary, the Customs raided a DCSL factory at Seeduwa and seized some documents.

It was the second time a company owned by business tycoon Harry Jayawardene was searched following a Customs discovery in recent weeks that the DCSL subsidiary Periceyl has been allegedly importing whisky, brandy and gin under a cheaper classification. The week before Customs officers walked into the Periceyl office at Nawala and took away documents while an accountant was also questioned.

Mr. Jayawardene, however, said the company was clean. “The Customs Department can do its own investigation, but as far as we are concerned, the DCSL is clean and clear and above board,” he told The Sunday Times.

Customs officials said they were unable to have access to old records during the Seeduwa search because they were told these documents had been ‘misplaced’.

Deputy Excise Commissioner S. Sivanathan, carrying out a separate investigation based on The Sunday Times reports of the Customs probe, said he had not found any irregularities when he inspected the DCSL Seeduwa factory a week ago. But he said he had not compiled the report as yet, as he was collecting more import documents.

Chandrasiri de Silva, Superintendent Narcotics, Excise Department, in charge of the investigation, told The Sunday Times that the department is further looking into the matter and the investigation will be completed within two to three weeks. “We have found ‘some lapses’, but I cannot further comment on it,” he said.

The probe began when Customs officials stumbled on some allegedly incriminating documents of the DCSL subsidiary. The company is accused of defrauding the state to the tune of Rs.1.5 billion through under invoicing.