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CPC Losses Rs 3.5 bn: Culprits allowed to go overseas

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CPC's top officials before COPE over corruption at the state enterprise (pictures courtesy Parliament)

Fuel Commission Scam

By Shamindra Ferdinando

A group of Ceylon Petroleum Corporation (CPC) officials, responsible for causing loss of nearly 3.5 billion rupees, had left the country over the past several years and successive Ministers had failed to take action against any one of them, the Committee of Public Enterprises (COPE) was told recently.

The parliamentary watchdog delved into the corrupt deal that enabled filling station owners to make a killing at the expense of both the corporation and consumers alike, according to a statement issued by the Parliament.

Declaring that the marketing department of the then loss-making enterprise had been directly responsible for the massive fraud, the parliamentary watchdog committee emphasized that the top management deliberately delayed the issuance of a particular circular for nearly nine years to facilitate payment of excessive commissions to distributors.

COPE alleged that the public had to bear the burden as the CPC conveniently passed the unwarranted additional expenditure to the consumers.the statement issued by Jayalath Perera, Director (Legislative Services) on behalf of the Director Communication, the CPC and the distributors had perpetrated the robbery exactly over a period of eight years and eight months. On the basis of Auditor General W.P.C. Wickremaratne’s report for 2022 and examination of the current status of the CPC, the COPE estimated the losses caused at Rs. 3,416 mn for the period of 2014 to 2022.

The examination of the CPC was undertaken by COPE, under the leadership of Rohitha Abeygunawardena, whose appointment as its Chairman, in early March this year, caused a major uproar in Parliament. Questioning the integrity of the lawmaker concerned, the Opposition announced a boycott of the proceedings. The status quo remains the same. AG Wickremaratne had been present at the proceedings where COPE questioned the current top management of the CPC on June 19th.

State Ministers Indika Anuruddha and Shantha Bandara, Members of Parliament Mahindananda Aluthgamage, Dayasiri Jayasekara, U. K. Sumith Udukumbura, (Major) Sudarshana Denipitiya, Upul Mahendra Rajapaksha, M. Rameshwaran and Madhura Withanage were present at the proceedings.

COPE declared that the marketing department should be held accountable for the mega fraud. At the time the marketing department initiated the manipulation of the process in 2014, Pavitradevi Wanniarachchi had been the Minister in charge of the Power and Energy portfolio. According to the AG’s findings, the manipulation had continued during the tenure of Patali Champika Ranawaka, Ranjith Siyambalapitiya, Ravi Karunanayake, Mahinda Amaraweera, Dullas Alahapperuma, Gamini Lokuge and again Pavitradevi Wanniarachchi. Except Ravi Karunanayake, who is a qualified top accountant, all others are in the current Parliament, with Amaraweera serving the Cabinet of Ministers, while Siyambalapitiya is State Finance Minister.

The corrupt deal between the CPC and the distributors had continued unabated during the Covid-19 epidemic, and the economic crisis, leading to the declaration of bankruptcy in April 2022.

The top management hadn’t been able to explain the action taken against those responsible at any level. COPE asked the CPC, on June 19, to submit a list of those responsible for the sordid operation, within seven working days. COPE also asked for a comprehensive report on fraudulent activities, within two weeks, and requested the lodging of a complaint with the Criminal Investigation Department (CID), regarding the case.

According to COPE, due to payment of unjustifiable commissions to the distributors, consumers had to pay Rs. 5.85 for a litre of 92 petrol, Rs. 7.50 for a litre of 95 petrol, Rs. 5.88 for LED and Rs. 6.96 for LSD in excess as of the calculations to date.

It was also disclosed that massive commissions that had been paid in 2022, the year the country declared bankruptcy, was conveniently categorised as sales expenditure. The examination revealed that absolutely no action had been taken against those responsible.

CPC officials before COPE



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Senior citizens above 70 years to receive March allowances on Thursday (26)

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The Welfare Benefits Board has announced that the March allowance for senior citizens over 70 years of age will be credited to each beneficiaries account on Thursday (26th).

693,801 senior citizens over the age of 70 years are set to benifit under this welfare scheme

 

 

 

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CEB Engineers warn public to be prepared for power cuts after New Year

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A looming power crisis is casting an ominous shadow over the country, with engineers warning that the current “no power cut” situation may not last beyond the Sinhala and Tamil New Year due to worsening diesel shortages and ongoing coal-related disruptions.

A senior electrical engineer, attached to the Ceylon Electricity Board Engineers Union, cautioned that while authorities appear to be managing the system for now, the underlying fuel constraints are reaching a critical point.

He told The Island: “At the moment, there are no scheduled power cuts across the country. But this is being maintained under significant strain. With the diesel shortage and unresolved coal issues, sustaining uninterrupted supply, beyond the New Year period, will be extremely challenging.”

The engineer noted that thermal power generation — particularly diesel-based plants — has become increasingly difficult to sustain due to limited fuel stocks and logistical bottlenecks. At the same time, the substandard quality coal supply issues that have plagued recent shipments continue to undermine the efficiency of base-load generation.

“We are stretching available resources to avoid immediate outages. owever, unless there is a rapid improvement in fuel availability, the system will be forced into load shedding soon after the New Year,” he warned.

According to him, authorities are likely to delay any scheduled outages until after the festive season to avoid public backlash and economic disruption during a traditionally sensitive period.

“Most probably, they will try to continue like this until the New Year. But after that, daytime or peak-time load shedding becomes almost inevitable if the situation remains unchanged,” he added.

Energy analysts say the warning reflects a deeper structural vulnerability within the power sector, where over-reliance on imported fossil fuels — particularly diesel and coal — continues to expose the system to external shocks and procurement failures.

The recent use of substandard coal has already resulted in reduced generation capacity at the country’s sole coal power plant at Norochcholai, compounding the pressure on thermal plants to bridge the shortfall. Engineers say this has forced operators to depend more heavily on costly diesel generation — an option now constrained by supply shortages.

Industry sources indicate that demand is also on the rise, particularly during night peak hours, possibly driven by increased reliance on electricity for cooking, amid gas shortages, further tightening the supply-demand balance.

Despite the absence of official announcements, insiders suggest contingency planning for load shedding is already underway.

“If the fuel situation does not improve within the next few weeks, controlled power cuts will be the only viable option to protect the grid from a total system failure,” the engineer stressed.

The warning comes at a time when the country is attempting to maintain economic stability following successive crises, with uninterrupted power supply considered critical for industry, commerce, and daily life.

However, unless urgent corrective measures are taken to secure reliable fuel supplies and stabilise generation capacity, the return of power cuts — including during daytime hours — appears increasingly unavoidable, an expert said.

By Ifham Nizam

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Japanese boost to Sri J’pura Hospital, an outright gift from Tokyo during JRJ rule

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Japanese Ambassador to Colombo, Akio Isomata, on 24 March, handed over the newly established dental unit and 4D Angio CT suite at Sri Jayewardenepura General Hospital. Health Minister Dr. Nalinda Jayatissa and other senior officials from the Ministry of Health and the hospital attended the event.

Highlighting the strong partnership between Japan and Sri Lanka in the health sector, the Embassy issued the following press release yesterday: “This handover marks the second phase of the project, following the initial provision of ophthalmic equipment in December 2023. The current phase represents a significant milestone, featuring the introduction of a state-of-the-art CT Angiography system – the first of its kind in South Asia – as well as dental units. These contributions are expected to enhance Sri Lanka’s capacity to address non-communicable diseases (NCDs), including cancer, stroke, and diabetes, thereby saving lives, reducing long-term complications, and improving the quality of life of patients.

The CT Angiography system integrates CT scanning and angiography functions, enabling highly accurate and timely diagnosis and treatment. It is expected to further strengthen the hospital’s role as a key medical hub in Sri Lanka and the wider region.

In addition, the provision of 10 dental units will support the establishment and enhancement of dental services at the hospital. In Japan, oral health is considered closely linked to overall health and plays an important role in extending healthy life expectancy. This support is, therefore, also expected to contribute to the promotion of preventive healthcare in Sri Lanka.

The Sri Jayewardenepura General Hospital was constructed in 1984 with grant assistance from the Government of Japan. The well-known “1001-bed” story—originating from former President J.R. Jayewardene’s remark to add one more bed to the originally planned 1,000—remains a memorable episode reflecting the history of this cooperation.

Japan has consistently supported Sri Lanka’s health sector over the decades, including the development of medical facilities, strengthening of blood supply systems, and support during the COVID-19 pandemic through vaccine delivery assistance. Furthermore, during Sri Lanka’s recent economic crisis, Japan provided fuel essential for maintaining healthcare services, and in times of natural disasters, dispatched emergency medical teams to deliver urgent care. These efforts demonstrate Japan’s continued commitment to standing by Sri Lanka, especially in times of need. These efforts reflect Japan’s commitment to “investment in people” and “human security,” supporting a healthcare system in which all individuals can live healthy and dignified lives.

Japanese Ambassador Isomata with Minister Dr Jayatissa and officials (pic courtesy Japanese Embassy)

Ambassador Isomata remarked, “This support is not merely for the provision of equipment, but also for the consolidation of the foundation for safeguarding lives and livelihoods. Sri Jayewardenepura General Hospital, built with the support of Japan, stands as a symbol of the longstanding friendship between our two countries. We sincerely hope that this project will contribute to building a sustainable healthcare system that benefits future generations in the field of medicine and further strengthen our partnership.”

Minister Jayatissa highlighted,” This is not just a donation of machines. It is an investment in the lives and futures of our patients. By establishing this modern dental unit, we are addressing a critical need in the prevention and treatment of oral diseases for our population. I wish to express our deepest gratitude to the Government and people of Japan for this generous assistance. These are acts of true friendship, and the people of Sri Lanka will always remember them with gratitude.”

Japan will continue to work closely with Sri Lanka to further strengthen the healthcare sector and deepen the longstanding friendship between the two countries.”

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