Customs proved beyond reasonable doubt last week that there has been underevaluation in the order of 250 000 passports printed and delivered to government by the American company, Global Enterprise Technologies (GET). It has yet to be proved who is responsible for the underevaluation between this company and Harel Mallac Technologies.

It is now clear that the American company will never answer any charges before any Mauritian court. Its vice-president, Gary Christelis, and regional manager, Mohamed Reda Baalbaki, cancelled their proposed visit to Mauritius last Friday. They frustrated the Central Investigation Division and high-ranking customs officers who were keen to put some questions to these two gentlemen who were in Dubai.

According to unconfirmed reports, the cancellation followed a warning given to them by the US embassy in Port-Louis concerning their possible arrest on their arrival in Mauritius under a charge of having conspired to defraud the Mauritian state of a sum of Rs 12 million in terms of customs duty and sales tax.

<B>Harel Mallac denies charges</B>

So far, the police have arrested and charged the general manager of Harel Mallac Technologies (HMT), Alain Ah Sue, with that offence. But HMT is denying these charges, arguing that it is not the importer of these passports and was mere agent of GET. The CIF price per passport, that is 1 US$ (Rs 29,47), which HMT caused to be declared on the bill of lading, came from GET, Alain Ah-Sue said to the police.

In fact, suspicion around the import of these passports was aroused when they were cleared through customs by HMT and not by the shipping department of the ministry of Finance. This ought to have been the proper channel as the client is the commissioner of police. Passports, considered as high-security goods are not, as bank notes and ammunition for the police, cleared by a third-party.

The use of that improper channel prompted customs to probe into the matter. This led to the discovery that the police department was paying Rs 97,80 per passport. Customs considered that this is the true value of each passport and not Rs 29,47 that HMT had declared. By taxing the passports on Rs 29,47 instead of Rs 97,80, the customs had lost a sum of Rs 12 million.

In fact, GET declared the production price of each passport at Rs 5. Freight and insurance were declared at Rs 24,97. “We could not believe that a passport with such security figures could cost only Rs 5,” said Nainduth Bissessur, n° 2 at customs.

It is clear that GET has benefited from this underevaluation and the fact that, from the date of signature of the contract for the printing of 250 000 passport and the delivery date, customs duty on this item fell by 50%. It was in fact reduced from 80% to 20%. H MT has not obtained a single cent over and above what was agreed in that Mauritian company’s contact with GET.

“Whatever windfall gain they might have made went into their pockets. GET had to pay Rs 12 million to HMT for computer, cables and printers to be used to fill in these passports and for clearing them through customs. We have not obtained any extra sum after having cleared these goods and delivered computers, cables and printers,” said Alain Ah-Sue. He may be the wrong culprit in the dock while GET officials stay at bay.