Kowlessar rebuffs claims of fraud in remigrant letters
Stabroek News
January 1, 2004
Finance Minister Saisnarine Kowlessar yesterday joined his Secretary to the Treasury (ST) in rebuffing allegations that there was corruption in the issuance of duty-free concessions to remigrants and said those with evidence of such acts should come forward.
Kaieteur News had reported earlier this week that the Ministry of Finance had granted around 200 duty-free letters to remigrants at the end of August this year and in some cases money was paid for the purchase of the said letters. This has been denied by the Finance Ministry.
ST at the Ministry of Finance, Neermal Rekha, told the Government Information Agency (GINA) that for the entire month of August only 85 remigrants were issued with duty-free letters, all of which had a six-month validity. He said some other categories were granted duty-free letters including government ministries, departments, agencies and private sector businesses. Questions had also been raised in media reports that some of the suspect letters did not have the customary expiration period for the use of the duty-free concession.
Rekha in response said that it was standard operational procedure for some categories of persons granted concessions for the letters to remain without expiry dates because of the nature under which the concession was granted. He said too that some people did not use their ST letters in a timely manner because of the crime situation.
In an earlier interview with this newspaper, the ST also called for the evidence to substantiate the allegations that officials of his ministry issued fraudulent ST letters.
During that interview he said he was prepared to hand over all records to the Guyana Revenue Authority (GRA). An investigation is ongoing and is being conducted by the GRA.
Commissioner-General of the GRA Khursid Sattaur had told Stabroek News on Monday that reports of the alleged fraud were being investigated. Sattaur said that a full disclosure will be made to the public when the investigation is completed.
Kowlessar said he is ready to stand by the current system, calling it the most effective in the history of Guyana. He said that the allegations of fraud are unfounded and malicious.
In explaining the system of duty-free concessions under the Fiscal Enactments Act, the ministry in the GINA release said that prior to that act, the Ministry of Finance granted the concessions in accordance with Section 12 of the Customs Act, Chapter 82:01 and Section 18 of the Consumption Tax Act, Chapter 80:02. However, under the new act, which came into effect on September 1, the GRA is now tasked with the responsibility of granting these letters. The Ministry of Finance is responsible for issuing an advisory letter to the GRA stating that the person requesting the duty-free concession is so qualified.
In order to reduce instances of corruption, the ministry issues six original advisory letters signed by the ST. These letters are sent to the Minister of Finance, the Commissioner-General - GRA, the Auditor-General and the Licence Revenue Department. The Finance Ministry retains one for record-keeping purposes.