Controversy centres on who controls the money and how it should be disbursed By Damith Wickremasekara Sri Lanka Customs is at loggerheads with the Treasury over the rewards fund, with the Customs officials demanding control of the fund and resisting the influence of the Finance Ministry. The Sunday Times learns that Customs officials are insisting [...]

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Customs, Treasury clash over huge reward fund

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  • Controversy centres on who controls the money and how it should be disbursed

By Damith Wickremasekara

Sri Lanka Customs is at loggerheads with the Treasury over the rewards fund, with the Customs officials demanding control of the fund and resisting the influence of the Finance Ministry.

The Sunday Times learns that Customs officials are insisting that funds required to pay for rewards to their staff should be retained instead of transferring the money to the Treasury and awaiting its approval to make the reward payments.

A senior Customs official said that under the previous system, where the revenue was first sent to the Treasury and the Customs had to secure the funds to pay the rewards, there was a delay of about two years.

He said due to the delays, the customs was permitted to retain part of the funds to pay rewards.

However, under a new system, the Treasury has demanded that the Customs transfer the funds to the Treasury, and whenever there was a requirement to pay rewards, the payments would be made promptly.

A senior Treasury official said the Customs was holding back more than Rs 800 million, and instead of holding the funds, the Customs should transfer the money to the Treasury to maximise benefits from the interest gained.

He said the Treasury was willing to have a deposit of around Rs 100 million if the Customs required it to pay rewards, and other funds would be made available promptly.

The Customs has also raised objections to the seconding of Sri Lanka Administrative Service (SLAS) officials from the Finance Ministry to the Customs for senior positions.

However, after trade union action by Customs this week, two senior officials were reverted to the Finance Ministry. Also, a decision was taken to limit the service of 15 other officials to a three-year period. Customs officials have also raised objections about instructions to use the fingerprint machines to mark their attendance.

The Treasury has agreed to reconsider the decision and take practical steps to overcome the issue.

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