More light has been shed on the circumstances which led to the Customs Department shutting down operations at the Desmond Panton-led Key Motors on Hagley Park Road in Kingston on Monday.
An audit by the Department into the operations of the car company reportedly uncovered discrepancies in the payment of customs duties.
The Contraband Enforcement Team (CET) is said to have discovered that more than 50 vehicles amounting to $40 million in duty were illegally removed from a warehouse operated by Key Motors and unlawfully licensed.
Fraud scam
But according to attorney-at-law, Abe Dabdoub, who is representing Mr. Panton, Key Motors called in the Fraud Squad in March after discovering that customs duties had not been paid on the vehicles.
Mr. Dabdoub disclosed that an employee of Key Motors who is believed to have been involved in the fraud has since disappeared.
“And he was asked to do an inventory of all his vehicles and bring an auditor in to audit his books to see how much money was robbed and how much is missing, because it is not only a fraud against the customs it is also a fraud against Key Motors,” Mr. Dabdoub said.
Mr. Dabdoub says Mr. Panton who is charged with breaches of the Customs Act will appear in court on September 14.
Vehicles seized
In addition, Key Motors has agreed to pay over the outstanding customs duties.
“Key Motors has paid more than half the amount of money already and they will be settling the full amount of the duties,”
“Some of their customers’ vehicles have been seized but what is very clear is that what had happened could not have happened unless there was a conspiracy between the collectorate, somebody in customs and a member of staff at Key Motors,” he said.
The Customs Department says clients of Key Motors whose vehicles have been seized as part of the probe will get them back as soon as possible.
ADA concerned
The Automobile Dealers Association (ADA) says it is concerned about developments at Key Motors.
Although the company is not a member of the ADA, Chairman of the group, Kent LaCroix, says he is worried about the implications for the new car sector.
“Naturally we would be very concerned because over the years we have had the reputation of operating honestly and this could affect the whole industry,” Mr. LaCroix said.
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