Minister’s three-pronged strategy created more problems than solutions: Revisiting LP Gas scandal

The foremost task before the committee is to ascertain why this change in composition in the LPG mix was made, exposing the consumers to inherent danger

It would be quite appropriate to revisit the LPG scandal since the whistleblowing of Thushan Gunawardana (TG), former Executive Director of the Consumer’s Affairs Protection Authority and ascertain how surreptitiously the authorities have handled the above scandal. 

LPG is known as a clean and safe energy where safety is paramount important from the time of landing up to the point of delivering to the customers from its terminal. It must be stated here that the three multi-pronged strategy introduced by the CAA has created more problems than the solutions. The writer made an attempt to ascertain whether this cardinal principle of safety aspect has been observed in the breach by the two gas companies in the recent past.

Release of new LP gas cylinders with a new seal

Addressing a media conference recently (6), State Minister Lasantha Alagiyawanna said that the resumption of supply of domestic LP gas would take place almost immediately with the introduction of a shrink bundling film (polythene seal) covering the cylinder seal, which, in my view, is ludicrous, if not idiotic. The minister is sadly mistaken, if he honestly thinks that the introduction of the polythene seal is a full proof of guarantee for the safety of the gas cylinders. As far as the consumers are concerned, it is only a sugar-coated pill and a cosmetic exercise which does not inspire the confidence of the consumers at large. 

It is now a well-established fact that the arbitrary change of the composition of propane and butane from its time-tested ratio of 20 to 80 to 50 to 50 had been made with a view to maximising the profits by the two companies at the cost of the life, limb and the property of the consumer. Does the state minister genuinely think that he could allay the fears of the consumer by introducing this bundling film around the cylinder? Certainly not.

The most sensible action would have been the introduction of a sticker on the body of the cylinder more prominently, preferably with a luminous colour indicating the composition of the gas propane 20 and butane 80, the percentage of ethyl mercaptan (commonly known as methane-thiol) enabling the consumers to identify any leaks by its odorant, the batch number of the production or refilling with the date and a quality assurance certification that the gas cylinder has been subjected to a rigorous quality assurance parameters before they are dispatched to the market from the gas terminal. In the absence of these salient assurances, consumers would not buy the mere assurance given by the Minister. The Minister should as a matter of urgency, ensure that the above four parameters are prominently displayed on the body of the cylinder.

Additionally, the advantage of this novel method is that the consumer would be in an authoritative position to lodge a claim against the gas supplier in the event of gas explosion. On the other hand, the gas companies would take extra-precautionary measures to ensure that the final product is a hundred percent clean and safe. 

Testing of one cylinder per every 100 gas cylinders

Any layman would realise that the testing of one cylinder per every 100 gas cylinders is not a full-proof method and it does not in any way safeguard the safety of the consumer. A safety conscious customer is always vigilant that the gas cylinder he/she buys is a hundred percent safe. I am unable to fathom as to why the Minister imposes such a ludicrous condition whereas he should have imposed a compulsory compliance to have a rigid safety testing in every stage of the production process. 

I honestly believe that both companies are ISO 9000 companies as well as fulfilled safety standard certifications and it is not a rocket science to have such a rigid quality assurance system in place on the production line. A simple question that has to be raised here is; would the passengers travel in airplane or a ship risking their lives, if only one plane or ship out of 100 is tested before its use. What I could gather here is that the two gas companies have been too smart in gaining such an escaping route from the Minister and the CAA. 

What is hilarious is that this insistence has come from the Minister and the CAA and this ill-logical compliance would be a manna from the heaven for the two companies to abdicate their responsibility in the event of a calamity. This obnoxious requirement would no doubt again raises the suspicion of the consumers regarding the inferior quality of the gas cylinder under the new system. Testing of one cylinder out of 100 constitutes an infirm and ad-hoc substitute solution for what should have been a 100% final quality testing. Inevitably, country could witness similar gas explosions, if the 100% quality assurance is observed in the breach.

Payment of compensation to the victims

According to the headlines of a Sinhala newspaper, the total number of domestic gas explosions have exceeded 400 and the consumers undoubtedly would claim compensations for the damages caused to the life, limbs, properties such as utensils, kitchen and electrical equipment. Not only the Minister in charge of the Consumer Affairs but also some of the key ministers have openly admitted that it is the sole responsibility of the two gas companies to compensate the consumers to the extent of damages caused to the consumers. A civil organisation called ‘Paribokikyan Surekeeme Sanvidanaya’ has already started an agitation campaign for the payment of compensation to the victims. Thus, the two gas companies have an inalienable duty to make compensation to the victims without delay.

But it appears that a cat has come out of the bag denying this payment of responsibility by the gas companies. U.R.L. de. Silva, former President of the BASL making a voice cut over a popular TV news channel expressed that the victims of the gas explosions could seek justice through the district courts, claiming compensation. He is claimed to be a consultant to the Minister of Justice and we are not exactly aware that the merely expression of the legalistic opinion is the stance of the Government. In such an event, the poor consumers will have to recourse to the litigation process to recover compensation, which is a cumbersome procedure. At a time when the poor consumers are making a valiant effort to dull their pangs of hunger due to sky-rocketed cost of living, this will be an additional burden to the hapless victims.

Precedence already created 

Litro Gas company which inherits a 149-year rich history as a market leader has so far not expressed their intention of denying the compensation and this unsettled situation would create an unrest in the country, if the compensation claims are denied. Hence, they have an inescapable duty to honour these claims without causing any embarrassment to the Government at this juncture. 

It is to be mentioned here that this company has already created a precedent by paying compensation to the value of Rs. 185,000 to my neighbour, a respected gentleman, the owner of the Multi Kitchen, living at No. 32, Kandewatta Road, Nawala for the damages caused to the house as a result of the gas explosion, which destroyed his roof, pantry cupboards, kitchen utensils and other paraphernalia a few years ago. Thus, it is fervently hoped that Litro Gas company would honour the claims of the victims without any hesitation, in keeping with the precedents already created.

Irresponsible utterances of the expert committee

On 30 November, the President appointed an eight-member expert committee to investigate into the alarming rate of LP gas cylinder explosions and fires and recommend broader solutions to arrest this unhealthy trend. In the absence of any stipulated terms of reference, the so-called expert committee has a wide latitude to propose a wide range of remedial relief measures. The foremost task before the committee is to ascertain why this change in composition in the LPG mix was made, exposing the consumers to inherent danger. 

Surely, if the expert committee carefully studies the minutes of the board meeting, management committee meetings, etc., the exact truth would come into light. It may be possible that the two gas companies would have obtained the concurrence of the relevant authorities to switch over to a new product mix. If this was an arbitrary decision on the part of the two companies that arbitrary decision warrants a legal action against the companies.

At the very inception of the proceedings, the eight-member committee acted as CID officers by bulling the victims, which showed a degree of biasness towards the two gas companies. When visited a house, a member questioned a lady who happened to be a teacher ridiculing her to the maximum. She retorted arrogantly that she has not come from Thumpane and the committee learnt a bitter lesson. The committee should bear in mind that the general public expect a fair, independent and honest investigation concerning the gas explosions that has now exceeded the 450-mark. 

True, the TV footages displayed the burst of hoses, regulators and corroded gas burners which was mainly due to the excessive pressure and heat of the new product mix. The committee will have to be extremely mindful that their observations and findings will be watchfully observed by the public. The members of the committee should exercise more care and vigilance that the slightest irresponsible utterance and behaviour on their part would give a wrong signal to the victims on the ground that they are heavily biased towards the two companies.

It would do well for the expert committee to make field visits to the hardware shops to ascertain whether the recommended hoses, regulators and accessories are available in the market. In the Nugegoda hometown where I am living, I casually made inquiries whether they have SLSI certified gas appliances and the filthy responses I received cannot be written here. It is well-known that the flood gate is open to import inferior LP gas accessories without any control through the customs and the port and the poor customers are at the mercy of the scrupulous importers.

Basic chemistry aspect is ignored

Writing an article to a leading English paper, Professor O.A. Illepperuma, a respected chemistry academic of the Peradeniya University has straightened the facts and records in plain language. He says that a higher composition of propane is used in temperate countries during winter because the vapour pressure of propane at O C is 51 pounds per square inch while it increases to 142 at 30 C. This temperature is typical for Europe during the winter. He says, by increasing the propane concentration, it produces more vapour in the cylinder thereby exerting a high pressure. 

According to the learned professor, in most developed countries, the use of propane gas is prohibited for domestic use and it is allowed only for the outdoor use. The explosion is called Boiling Liquid Vapour Explosion (BLEVE) when the pressure of the tank exceeds the pressure it can safely vent. I am unaware whether an expert of the subject of chemistry is serving in the so-called expert committee to critically comment on the chemistry aspects leading to the gas explosions. Litro Gas Company having been in the industry for 149 years should have been well aware of these implications.

Dereliction of duties

The chairman and senior members of the Litro gas company made a valiant effort to conceal change of the new composition of the gas which claimed the life of one person and caused burn injuries to dozens of people. The damages caused to the personal property is enormous. However, the Minister in charge of the Consumer Affairs Authority has openly said change of the time-tested gas composition has led to these explosions. 

Making a special statement, the Minister stated in the Parliament that the Committee has found that Litro Gas Company had increased the propane and butane contents to 47% and 48% respectively. The sad episode that has come out from the committee is that SLSI has neither made this revelation earlier nor has it stipulated a standard regarding the composition except the pressure of the tank. However, the fact remains that neither the minister nor the Government has ordered the police to commence an investigation. 

A cursory glance of the Consumer Protection Act reveals that the Consumers Affairs Authority is clothed with enormous powers to deal with errant gas companies. When consumers took their leaked cylinders, the dealers have refused to accept them, which is a clear contravention of the regulations. What has CAA done to intervene on behalf of the consumers? Absolutely nothing. Though the CAA has adequate teething, it appears it has not intervened on behalf of the consumers. It is a matter for regret that the paucity of adroit officers in the calibre of the former Executive Director, Thushan Gunawardana has been the bane for this downfall. 

Viyathmaga square pegs in round holes

It appears that the LP gas composition had taken place during the tenure of Anil Koswatta, former Chairman, a nominee of Viyathmaga. When Anil Koswatta was ousted, his successor another nominee of infamous Viyathmaga traded verbal tirades against the former without concentrating on the safety aspects of the gas cylinders and neglecting his fiduciary duties. He did not have the audacity to attend the media briefings to give authoritative answers at the initial stage and junior offices of the management hierarchy when questioned gave misleading answers. 

The present Chairman appeared to be an immature person who lacked extensive industrial exposure and poor leadership traits to lead a team of technocrats in this specialised field and find pragmatic solutions to the burning issues that claimed the lives of the hapless and helpless consumers. No wonder how the efficiency of operations had suffered a setback causing extensive damages to the consumers. Given the magnitude of the garlic and the LP Gas scandals and the systematic manner in which those scams have been engineered, it could be safer to assume that these two scandals bear ample testimony to the dismal management failures of the members of the Viyathmaga in managing those two entities. 

President’s intervention needed

Out of the five-year-term, two years have elapsed leaving only three years for the President to revive the economy by steering the institutions presently headed by the inexperienced Viyathmaga members. This earnest request is made for the President to replace those square pegs in round holes by appointing subject matter specialists with proven track record to manage those institutions more efficiently. It is reported that even the ministers are reluctant to rein the members of the square pegs as the Ministers do not wish to earn the wrath of the President in retaliation. 

The writer is a Productivity Specialist and Management Consultant. He can be reached via: [email protected].)