Comptroller of Customs, Carl Felix has imposed a hefty fine on
a Chinese construction company for allegedly defrauding the State of millions of dollars in taxes.
Well-placed sources told GRENADA TODAY that Felix levied a fine of close to EC$750, 000.00 on the firm that was contracted to rebuild the Grenada national stadium after it collapsed in 2004 following the passage of Hurricane Ivan.
The Chinese have been the subject of an ongoing investigation into alleged corrupt practices by Customs after it was discovered that the firm was importing items for a private building in the south of the island under concessions granted for the stadium project.
The Customs authority has seized several containers on the St. George's Pier, that were brought in by the Chinese with misleading labels.
According to a source, Comptroller Felix imposed the fine based on duties that were liable to be paid to the State by the construction company on over 20 containers of goods that were brought in for the private project at Woodlands, St. George's.
The Customs boss had ordered a three-member team of officers to conduct a probe into the incident.
The source said it is more than likely that the Chinese will have to pay in excess of one million dollars in fine since the containers are also subjected to daily rental fees by the Grenada Ports Authority (GPA).
It is not clear whether the development is affecting relations between the Keith Mitchell-led New National Party (NNP) government in St. George's and Mainland China.
The source said there has been no noticeable signs of the Ministry of Finance trying to intercede in the matter on behalf of the Chinese.
"We hope that the government will stay out of this and leave the Customs alone to deal with this particular matter. We know what we are doing. The law is clear... If anyone is found in breach then we have to deal with them. It does not matter to us who is involved", he remarked.
The Mitchell government dumped the Republic of China (ROC) on Taiwan after 15 years of diplomatic ties with St. George's in favour of Mainland China which offered it a more lucrative package following the passage of Hurricane Ivan.
The Chinese firm was alleged given permission by the Physical Planning Unit in the Ministry of Finance to build a "hostel" to house its workers but it was subsequently discovered building an upscale hotel that will be open to the public.
The firm was said to be evading Customs duties by labelling the containers as coming "for the sole use of the national stadium".
Most of the items in the containers are believed to contain goods for the hotel project like television and telephone sets and household stuff.
