AG: CPC continues to make excess payments to distributors

Auditor General W. P. C. Wickremaratne yesterday told The Island that the continuing controversy over payment of undue commissions to dealers highlighted the failure on the part of successive administrations to address such serious issues.

Asked whether the excess payments had been stopped after he brought the corrupt practice to the notice of the Parliament and other relevant authorities, Wickremaratne said that the filling station owners had obtained an interim order against the CPC’s decision to reduce payments.

Asked to explain, the AG said that the marketing department of the CPC had made payments above the rate that was recommended by the Board of Directors of the state enterprise. “The issue at hand is how this has continued for over eight years,” Wickremaratne said while declining to comment on the continuation of the controversial payments due to the court intervention.

Wickremaratne said that the Board of Directors of the CPC owed an explanation why it failed to halt illegal payments made by the marketing department or whether it was brought to the notice of higher authorities. The official said that a major system change could have been effected if governments acted on findings made by the State audit and highlighted by various parliamentary committees.

With regard to the CPC scam, Wickremeratne identified the involvement of two senior officials.