Clarification...

Referring to our news reports which appeared on August 20 and 27, 2006 under the heading "Cement VAt scam bared" Fadee Cement claims it has and always been a sole proprietorship duly registered legitimately carrying on all business transactions in terms of the laws and ethical business practices of Sri Lanka.

Fadee Cement claims in a letter that the articles have brought the owner of the company, Mrs. Saadiyathul Mufli and her business into hatred, ridicule and contempt.

Our Staff Reporter notes - Fadee Cement has been registered under the Western Provincial Council as an Individual Business on December 23, 2005 and according to the registration it has commenced business on 14.12.2005.

The Sunday Observer is in possession of documents to prove that Fadee Cement has commenced business before 14.12.2005 as Fadee Cement has collected 250 Metric Tons of bulk cement from LafarGe Mahaweli Cement from Lafarge Silo Station at De SAram Gate, Port premises, Colombo on 05.12.2005 for International Cement Traders (ICT), Peliyagoda. Fadee Cement from this day upto 30 June 2006.

Also has collected 12,750 MT of cement from Lafarge to be sold to ICT to the value of Rs. 102 million. We have more documents to prove that Fadee Cement had not issued VAT invoices to ICT. Instead, Zeeniya Traders of Grandpass which had not purchased any cement from Lafarge had supplied VAT invoices to ICT to be forwarded to the Inland Revenue Department for claims.