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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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Lanka enters new phase of prosecutions as hurdles clear

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MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.

Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.

An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.

President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.

In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.

Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne

— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.

SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.

Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.

Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.

Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.

She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.

At the time, the family spokesman said she was due to return in three days.

“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.

“We have cleared the legal hurdles to press ahead with more arrests,” he said.

“We are working on a few administrative issues which will be resolved very soon.”

The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.

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Police warn: Court evaders face property seizure

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Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.

Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.

The proclamation must allow the person at least 30 days to appear before court, Police said.

If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.

This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.

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Nearly 20 Iranian tankers stranded off Lanka amid US sanctions

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Around 20 Iranian oil tankers are reportedly stranded about 15 nautical miles off Sri Lanka’s southwestern coast, with several vessels facing shortages of food, fuel and fresh water amid tightening US sanctions and maritime restrictions, The Wall Street Journal reported.

According to the report published on Thursday (1), US officials have in recent weeks urged Sri Lanka to prevent local vessels from supplying essential provisions to the tankers and their crews.

The report, citing Sri Lankan Government documents and companies involved in supplying the vessels, said the US had raised concerns over assistance being provided to the sanctioned tankers.

The situation follows the United States’ decision to reimpose a maritime blockade of the Strait of Hormuz in July, which has reportedly left dozens of Iranian and Iran-linked tankers involved in transporting sanctioned oil to China stranded near Asian countries, including Sri Lanka and Malaysia.

Most of the vessels are reportedly empty tankers that had previously transported Iranian crude to Asia, often through ship-to-ship transfers, before preparing to return to Iran for additional cargo.

The WSJ reported that the US Embassy had warned Sri Lanka in August that it was monitoring 19 Iranian tankers off the country’s western coast and had raised the possibility of secondary sanctions against companies providing services to sanctioned vessels.

Sri Lankan authorities have maintained that the vessels are located outside the country’s 12-nautical-mile territorial waters and that the Government is not providing them with logistical assistance.

Meanwhile, shipping companies told the WSJ that obtaining approval to supply essential items, including food, drinking water and fuel, as well as repair services, to the Iranian vessels had become increasingly difficult.

Separately, Reuters reported in late August that 27 sanctioned Iran-linked tankers were waiting off Sri Lanka without cargo.

The Trump administration has also imposed additional sanctions on Iran and warned countries and companies trading with Tehran of potential consequences, as Washington seeks to pressure Iran to make concessions amid the ongoing conflict.

Similar concentrations of Iranian-linked tankers have been reported off Malaysia, where waters have historically been used for ship-to-ship transfers of Iranian crude destined mainly for China.

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