In a press statement last evening Commis-sioner General of the Guyana Revenue Authority (GRA) Khurshid Sattaur said Fidelity Investments had attempted to defraud the government of $350M in revenues as part of a major scam detected earlier this year and even after charges were laid.
But Fidelity put a statement out shortly after saying that at no time did the company ever try to defraud government and it called on Sattaur to produce such evidence, adding that it stands resolute with the body to wipe out corruption at the GRA. The high-level probe into the alleged $350M attempted fraud is continuing.
Sattaur said that while the GRA did not intend for the matter to be replicated, “Fidelity Investment once again succeeded in what appears to be a malicious and persistent effort to defraud the government and people of Guyana of revenues by forging documents at the Customs and Trade Administration”. It was referring to a second investigation which ended up in the courts yesterday.
The revenue boss, who said he was responding to public statements made by Fidelity on Wednesday, stated that it is very unfortunate that Joshua Safeek, owner of the SAFECO group of companies and the Managing Director of one of his subsidiary companies, Kong Inc. could make a public statement on custom matters knowing fully well that they were in breach of the law.
He was quoted as saying, “Anyone who has regard for the law will not willfully commit the same offence, even after being charged in the first instance.”
Sattaur referred to statements made by Fidelity as careless and untimely, and affirmed that the GRA stands resolute in its position against corruption, adding that it will undertake, in the most condign manner, all the necessary steps to ensure that efforts to defraud the government of revenues are thwarted.
According to him, Fidelity’s more recent matter was detected early and he expressed confidence that the court has the capacity to deal objectively with the matter and to ensure that justice prevails. Sattaur added that by ventilating such matters in the public he is hopeful that Guyanese will understand and make a sound assessment of the occurrence and not be gullible to the careless statements made by Fidelity, which he said seems to be a deliberate attempt to influence the court proceedings.
He re-stated that if Fidelity is in possession of any information regarding corruption then the company should lay it before the GRA or the Multi-Agency Task Force that is presently engaged in carrying out a major investigation into the operations of the GRA, particularly, the Customs and Trade Administration.
Sattaur noted that once there is sufficient evidence against the perpetrators, the GRA will act within its power to stem the illegal practice.
Fidelity in responding to the GRA said that it stands firm in its commitment to submit for assessment by customs the transaction value of the products it imports and not to submit what Sattaur decides as the transaction value. It added that Safeek is not the Managing Director of Kong Inc as stated by Sattaur.
The company said that its Director, Safeek’s statements to the media were not careless or untimely as the July 9th issue of the Guyana Times newspaper reported about charges being laid by the GRA and refers to matters which are not yet proven.
The company insisted that it did not forge any documents noting that it stands ready to defend itself, “from all scurrilous attacks from Mr. Sattaur, as is the case here”.
Further, Sattaur commented on allegations by Fidelity that he is trying to influence the ongoing Multi-Agency Task Force investigation, which stemmed from an earlier scam involving Fidelity Investment, by being part of the team. Sattaur said that the GRA is not represented on the team of investigators but that he is tasked with facilitating the investigation by releasing the necessary documents and personnel as required by the Task Force.
He noted that the GRA moved to the court for the second time this year yesterday to file charges under the Customs Act against Fidelity Investments for making false declaration to the Customs and Trade Administration for the shipment of Polar Beer, adding that two weeks ago, Customs seized two containers of Polar Beer after it found that the value of the commodity was under-invoiced.
Sattaur said that earlier this year, Fidelity was implicated in a major corruption probe after the company imported over 50 containers using false documents.
At a press briefing on Thursday Safeek accused the GRA of conducting a campaign against him because he was exposing corruption within it and he denied that his company ever bribed customs officials.
He said that the new charges filed against him are merely to silence him on the revelations he has made about corruption at customs, adding that polar beer has been smuggled into Guyana for years and has been clearing customs wharves without the relevant duties being paid.
Safeek declared that at no time did his company pay any bribe to the GRA for any shipment of polar beers imported. He added that it is all part of the vindictive acts being taken against them by customs.
