COPE Uncovers Alleged Fraud at Ceylon Petroleum Corporation

COLOMBO (News 1st); The Committee on Public Enterprises (COPE) has uncovered a potential loss of Rs. 3.416 billion at the Ceylon Petroleum Corporation (CPC) between 2014 and 2022.

It was disclosed at the Committee on Public Enterprises that due to dishonesty existing within the Ceylon Petroleum Corporation and the deliberate delay of eight years in issuing the relevant circular to the filling station owners by the marketing department of the Corporation, the Corporation has incurred a loss of Rs. 3.416 billion for the period 2014-2022.

This matter was taken up for discussion recently when the Committee on Public Enterprises met to examine the Auditor General's report for the year 2022 and the current status of the Ceylon Petroleum Corporation.

COPE directed a report be submitted to the Committee within seven working days containing the list of names of those affiliated to committing the fraud and the measures the Corporation has taken to hold such officials accountable for their wrong doings.

It was disclosed that the public had to bear an additional cost for fuel due to the payment of over Rs. 31 billion as extra commission to the distributors.

Due to the overpayment made by the officials, COPE disclosed that the customer has to pay
Rs. 5.85 for a liter of 92 petrol
Rs. 7.50 for a liter of 95 petrol
Rs. 5.88 for LED and Rs. 6.96 for LSD in excess as of the calculations.

The Committee also inquired regarding the commission which was paid in excess for the year 2022 which has been accounted as a sales expenditure when it should have been entered as a receivable.

Accordingly, the Committee further inquired about the officials responsible for the recovery of these overpayments and the action taken in this regard. It was also disclosed at COPE that the officials responsible for the said is no longer in the country.

The Committee on Public Enterprises directed to submit a comprehensive report within two weeks containing the list of names of those affiliated to committing such financial fraud and to make a complaint to the CID for investigations in parallel with the internal investigations.