St. John’s Antigua : The Customs Division has collected its largest fine in recent history – in excess of EC $215,000 on customs broker Foston George and clothing company Cool & Smooth – for the unlawful removal of a container from the port, among other offences.
According to a Ministry of Finance release, George confessed to the fraud and was fined $109,335.72 for untrue declaration, unlawful removal of a container, bribery and collusion.
The value of the evaded duty is unclear as the container’s contents remain unknown.
The same release stated that the boss of importer Cool & Smooth, by way of implication, accepted his responsibility for the wrongdoing by his broker but did not plead guilty. He was charged EC $106,144.20 for untrue declaration, unlawful removal of a container and unpaid duties and taxes.
When contacted for comment, Cool & Smooth owner Amer Hourani denied wrongdoing in the May 25 transaction, telling OBSERVER Media he had placed the entire matter in the hands of his broker.
“I am not involved in any fraud,” the Syrian native said, adding that he would not be distracted by the incident and would focus his attention on continuing to grow his business.
George refused to comment, only disclosing that the matter was in the hands of his attorney.
But sources tell OBSERVER Media that George’s firm, F & G Trading, had requested leniency – a plea that the Customs Division did not entertain.
On May 25, the container left the port without the well established clearance procedures being followed. Shortly thereafter, an investigation ensued. This led to the suspension of the broker and a Customs officer, whose fate has not yet been determined.
The Ministry of Finance said, in its release, that no action was taken against the Customs officer because the comptroller did not have the power.
“It is our understanding that the Establishment Division will take further appropriate action on the matter,” the release said.
The exact amount the guilty parties have paid is EC $215,479.92.
Comptroller of Customs Raju Boddu said the charge should send a strong message that fraudulent activity will be severely dealt with by his division.
“This is going to send a very strong signal that it’s not business as usual at Customs. We are willing to go the extra mile to facilitate your trade but when it comes to observing procedures and laws there will be zero tolerance,” Boddu said.
He added there has already been a positive response coming from the action, with importers and brokers coming in to better understand their responsibilities.
Boddu, who took up the job at the start of the new year, said the investigations were conducted in a professional manner, although he would have liked them to be completed earlier.
He also said both parties cooperated fully in the investigation that saw a lot of scrutiny on him as Customs boss.
“Everybody’s eyes were on the new Customs boss, as to whether he was going to sweep it under the carpet,” Boddu said.
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