PNG Customs uncover an alleged Car smuggling racket in Rigo District
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| Buses found in remote part of Rigo. Photo. Post Courier |
About 50 buses were confiscated at an abandoned cassava plantation site near Launa Kalana in the Rigo district when the authorities moved in to search the area yesterday. The cassava plantation is operated by an Asian company but was closed down sometime back due to landownership issues. A few local staffs continue to provide security over the area.
The Customs and Border Security officials and the Royal PNG Constabulary intelligence unit acted on a search warrant in a joint operation yesterday and searched the site to confiscate close to 50 vehicles, all Asian model buses that were kept there since June this year.
According to Customs, most of the vehicles and other goods were imported by an Asian contractor engaged with the PNG LNG project and were used during the construction phase of the PNG LNG project in the Central Province.
Since the contractor was engaged by the LNG project, it was allowed under a special agreement with the State to have tax exemption for goods that it imported for work associated with the project, on the understanding that the goods would be returned to their country of origin following the completion of the project.
However, the contractor did not send out the goods in line with the agreement and allegedly opted to keep them. In doing so the company failed to declare them to Customs for the appropriate tax duties to be applied.
The buses were parked in a remote location with an intention to secretly sell them to possible buyers, according to customs officials, which amounted to not only breaching the agreement but breaking relevant import and export laws under the Customs Act. Some politicians have also been named by highly placed sources as having links to the illegal activities.
During the search yesterday, a local staff at the plantation site – who did not want to be identified – told Customs and police that the vehicles were driven to the location at night and on Sundays to avoid detection.
"We do not know anything or what kind of arrangements but we are often suspicious that something sinister was going on when the vehicles were brought here mostly during the night times on weekend Sundays and left here. The vehicles are mostly driven here by Asian drivers and usually they bring in four vehicles at a time especially on weekend Sundays and left them here with the keys given to the local supervisor of the yard to be kept," the staff said.
The acting estate manager of the plantation (named) also told authorities he too was not aware of the arrangement and only advised to look after the property and the goods that were delivered there. This compelled the Customs and police officers to search buildings at the plantation site and in the process uncovered building materials believed to have been imported under the tax exemption agreement.
The officers also found that some of the buses, mostly the huge 42-seater buses, were not used during the LNG construction phase but were nevertheless imported with other goods covered under the tax exemption agreement.
PNG Customs director (border) Ernest Ilarupa, who was in charge of the joint operation, said the goods, including the vehicles, would be impounded and kept in custody. Time will be given to the company to bring forward appropriate documentation to reclaim the goods. Failure to do so will lead to them being forfeited to the State.
He said appropriate charges will also be laid against the company for violating PNG customs laws.
Most of the buses were transported down to Port Moresby yesterday and kept at the Customs premises while police and customs officers continue to guard other vehicles at the plantation site and would eventually bring them to the city to be impounded.
PNG Customs Commissioner Ray Paul commended his officers on a successful operation that led to the confiscation of goods that bypassed lawful processes.
"I would like to again encourage the public to continue to work closely with us to ensure we protect our country from such unlawful activities. We the Customs cannot check every containers of goods that enters and leaves the shores of our country and I would like to call on you the citizens to come forward with information’s to assist us execute duties to ensure our laws are complied with at all times," he said.
The Commissioner said his team would now focus on dealing with the company that had breached the law and appropriate action would be taken if the company failed to meet its duty fees after a 30 day notice. Officers would continue to carry the operations to confiscate all items that have not been declared.
PNG Today / Post Courier
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