The largest state owned retail chain - Lanka Sathosa (Cooperative Wholesale Establishment/CWE) has incurred a loss of over Rs.75 million in the massive sugar scam, informed official sources divulged.
Some of the stocks had also been dumped on state-run Lanka Sathosa above the cleared price, similar to the Central Bank bond scam style of the bonds that were bought at low prices had been dumped on the Employees Provident Fund, it had been alleged.
The opposition charged that a large commodity trader with close links to the current administration had made large profits by selling sugar above the cleared price, and the Treasury had ‘lost’ Rs. 15.6 billion in taxes as a result.
The private company which is alleged to have imported the largest stock of sugar during the period of unprecedented tax reduction of up to Rs.25, has sold stocks of sugar to Lanka Sathosa in four occasions at different prices of Rs. 127.49 per kilo, Rs 121.50, Rs.92.00 and Rs.110.00 per kilo, official documents indicated.
After October 13, this company has sold 700 metric tons of sugar to Lanka Sathosa at a price of Rs. 127.49 per kilo in the same month, 700 mt at Rs.121.50 per kilo on October, 750 mt at Rs. 92.00 per kilo on October 20 and 600 mt at Rs 110.00 per kilo.
Accordingly, a loss of Rs.75.54 million has been incurred by Lanka Sathosa by purchasing the stocks of sugar from this supplier at a price higher than the government’s gazetted maximum retail price in four instances and selling it to consumers at this gazetted price.
After the revelation of the sugar scam by local media, Sathosa chairman had been transferred to thenSri Lanka Standards Institute.
According to official data, Sathosa has paid Rs 309.29 million to purchase 2750 mt of sugar from this company and has earned only Rs. 233.75 million by selling it to consumers at concessionary prices.
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