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DRI probes misappropriation of foreign currency
KATHMANDU, DEC 19 - Department of Revenue Investigation (DRI) has initiated an in-depth investigation over the alleged misappropriation of foreign currency equivalent to over one billion rupees by not bringing the foreign currency into the country earned through export business.
A high-level government source informed The Kathmandu Post that the department started the investigation after Nepal Rastra Bank sent a list of 122 exporting companies that have failed to bring in the foreign currency into the country received through their respective export business.
"Almost all the companies that have been charged of misappropriation of foreign currency are from ready-made garments sector," disclosed the source. Other companies charged with foreign currency misappropriation are from handicraft and woollen carpet sectors.
The source also informed that given the limited investigation capacity in term of manpower and expertise of the DRI, the Finance Ministry is planning to proceed the investigation by forming a separate task force. The government had formed similar type of task force to investigate the infamous Letter of Credit scandal some five years ago.
"Consultations with concerned departments, legal agencies of the government are going on and decision in this regard is expected within the two weeks," added the source. Finance Minister has been briefed about the planned investigation procedures and he has assured to extend full support, he added.
In a separate development, the DRI has launched another investigation over the irregularities of exporters by misusing the customs-free imported raw materials for export purpose. The source also said that the investigation was launched after it was reckoned that the exporters were engaged in revenue evading by not exporting the products made from the imported customs-free raw materials.
The source said that the evasion of revenue through misuse of raw materials imported against a bank guarantee equivalent to the normal customs duty is over Rs 240 million. Even in this scandal, ready-made garment exporters are on the top.
Among the five customs points, Bhairawa Customs alone has almost Rs 170 million worth of various raw materials imported against the bank guarantee, but the finished goods made from the materials were not exported.
Initial investigation has shown that most of the bank guarantees were issued by the state-owned Rastriya Banijya Bank followed by other joint venture banks.
In a bid to promote exports, the government provides customs-free imports of raw materials for export-oriented industries, but industries are required to produce bank guarantee equivalent to the normal customs amount.
The bank guarantee is released after the exporters submit required legal document ~ ~ to prove that the products manufactured from the imported raw materials is exported. As per the related regulation, the time interval between the import of the raw materials and export of the finished products should not be more than six months.
"If the investigation moves towards right direction, the government could be able to collect around Rs 500 million," claimed the source.Posted on: 2003-12-20 01:55
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