Policing permits

Tuesday, 16 May 2017 00:00 - - {{hitsCtrl.values.hits}}

The newly-minted Right to Information (RTI) Act is seemingly being put to good use after it was revealed to the Supreme Court this past week that 100 Members of Parliament had sold their vehicle permits to private individuals and institutions. Attorney-at-Law and public interest litigation activist Nagananda Kodituwakku had, with the aid of the RTI Act, obtained the new information from the Commissioner General of Motor Traffic in relation to his petition against the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

In his petition Kodituwakku argues that CIABOC declined to act on a complaint made in August 2016 in respect of MPs transferring their vehicles. CIABOC for its part claims that MPs are within their rights to sell the permits as it is in line with State policy. If true, this is an incomprehensible oversight on the part of the Government, if it is indeed even an oversight.

It was reported earlier this year that in the period after the August 2015 Parliamentary polls, MPs representing all political parties had caused losses amounting to over Rs. 7 billion by selling duty-free vehicle permits. It is quite frankly jaw-dropping that such a massive loss of public funds is allowed to happen with impunity year after year with no action taken.

As the public is well aware, Sri Lanka’s finances are in a precarious situation because of high external debt, partly due to heavy infrastructure borrowing under the previous Government. However, austerity measures remain deeply unpopular and the Government rather than leading from the front has continued its hand-out program to political elites regardless of the massive revenue loss to the State.

Interestingly, it was Finance Minister Ravi Karunanayake who, during the 2016 Budget reading, proposed to end the practice of giving tax-free vehicles to State workers and elected ruling class. In his speech, Karunanayake admitted the Government had lost Rs. 147 billion in revenue from 2012 to August 2015 and acknowledged the system was “politicised” and “misused”.

This announcement was lauded at the time and seen by many as a precursor to Sri Lanka finally righting its ailing economy, with the hope that it would eventually lead to a wholesale rethink when it comes to some of the exorbitant taxes and duties placed on motor vehicles. Yet sadly like many other matters when it comes to this ‘Yahapalana’ Government, foresight was not their strong suit; and this is without even touching upon the ludicrous disincentives in place when it comes to purchasing electric vehicles.

So as it stands, vehicle permits are still freely sold on the market at colossal prices and have sprouted a culture of corruption where the person the permit is issued for often sells it. The continued perk of vehicle permits will result in larger losses to the Government. Though a case can be made for deserving public servants at a time when the average Sri Lankan finds vehicles beyond their buying capacity, it is unconscionable that the Government continues to feather the pockets of politicians and elites at the cost of public funds that could be used for essentials such as food, healthcare and education.