RMV frauds cost Govt. Rs. 6.4 b, Welgama admits in Parliament

Saturday, 23 February 2013 00:21 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama

Our Lobby Correspondent

Fraudulent vehicle registrations have forced the Government to incur a loss of Rs. 6.4 billion in 2010 as shown in the Auditor General’s query on October 2010, Minister of Transport Kumara Welgama confirmed in Parliament yesterday.

“This has not taken place during the UNP regime but during our Government. The Department of Motor Traffic is not solely responsible for this tax loss; the Import and Export Controller, Customs, and the three armed forces are equally responsible,” said Minister Welgama. According to Minister Welgama, permits were issued to import vehicle bodies to replace those damaged in the tsunami. Using such body import permits, while importing bodies, other vehicle parts were also imported evading taxes and vehicles were assembled locally.

“We estimate there are over 19,000 such cases using old vehicle registration documents and using number plates of vehicles sold for scrap with chassis and engine numbers engraved illegally. This is a racket that employees of the Department of Motor Traffic and the Department of Customs were engaged in some time ago. We have instructed the Police to arrest vehicles using old registration plates on new models. The CID is also investigating into these arrests,” Minister Welgama clarified in response to a question raised by UNP Parliamentarian Buddhika Pathirana.