The customs comptroller, Bert Cunningham, intends to set up a mechanism to prevent fraud. He will work with people whom he trusts to try and increase the revenue at customs. A certain number of shops had to close down because they were no longer competitive compared to others that could propose lower prices with their fraudulent way of making business.

Bert Cunningham found himself in the middle of a controversy when he decided to hand in his resignation with one month’s notice a few days ago. He said he would be leaving on 16th December as he could no longer do his job properly, since there seemed to be no “national will to fight fraud and corruption”. Immediately after, business people of the EPZ and members of civil society came forward to assure him of their support and asked him to reconsider his decision.

Moreover, the government has been trying to convince him to stay. The prime minister and the minister of Finance said the government was sure he was doing a good job and that he should continue. Though the comptroller has not given his final decision yet, he has said that he “never say(s) never”… which could make one believe he is reconsidering his decision. The more so, as he looks determined to continue his fight against fraud and corruption within the customs.

<B>Rs 4,7 billion surplus</B>

According to Bert Cunningham, the country has undergone a loss of earnings of about Rs 5 billion over the past five years. This is due to the fact that a lot of imported products are under-invoiced for the payment of customs duties. The goods concerned are often electrical appliances or luxury goods such as perfumes, cosmetics or cigarettes.

As some products will no longer be subject to customs duties, the revenue of the country will drop and it cannot afford to lose even more money. Value Added Tax (VAT) should be imposed on the real value of every imported good and the mechanism he is proposing should help.

In fact, he has already started increasing the revenue of the state. Since October 2002, when he joined the customs department, a surplus of Rs 4.7 billion in revenue has been registered. This was particularly due to the fact that politicians no longer interfere to “save” their friends when the latter commit a fraud. Moreover, retailers are not afraid anymore to reveal frauds committed by their “colleagues” as there is a follow-up after people make allegations.