CIABOC takes up complaint on alleged Rs. 36 b fraud at CEYPETCO

Friday, 20 September 2024 00:28 - - {{hitsCtrl.values.hits}}

Presidential candidate Janaka Ratnayake

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has initiated an investigation following a complaint by Presidential candidate Janaka Ratnayake. The complaint accuses politicians and officials associated with the Ceylon Petroleum Corporation (CEYPETCO) of committing fraud amounting to Rs. 36 billion, which Ratnayake has called the largest fraud and corruption ever recorded by the Auditor General. Briefing the media last month, Ratnayake revealed that during a Committee on Public Enterprises (COPE) meeting that he disclosed a staggering Rs. 36 billion fraud, linked to the importation of fuel oils by CEYPETCO. He claimed that this mismanagement and corruption have significantly inflated fuel prices, suggesting that the public could benefit from a reduction of Rs. 200 per litre if proper practices had been followed.

Following these allegations, the COPE had instructed the Auditor General to conduct a comprehensive investigation into the claims.

“The findings of this investigation have unveiled significant mismanagement and financial irregularities within CEYPETCO, involving senior government officials and politicians,” Ratnayake said at the time. Among those implicated are key figures such as Power and Energy Minister Kanchana Wijesekera, former State Minister of Power and Energy D.V. Chanaka, State Minister of Power and Energy Indika Anuruddha, CEYPETCO Chairman Mohomad Uvais, and Power and Energy Ministry Secretary Mapa Pathirana.

The key findings from the Auditor General’s report include numerous financial missteps in fuel oil procurement, emergency procurement processes, and diesel contracts. Additionally, it highlights skyrocketing demurrage costs and the inequitable distribution of fuel, which have exacerbated public unrest during the fuel crisis.

Ratnayake has stressed the importance of holding those responsible accountable, emphasising that the Rs. 36.5 billion loss is not only a financial disaster but also a betrayal of public trust. He has called for immediate reforms within CEYPETCO to restore transparency, accountability, and public confidence, urging that further losses be mitigated by implementing stronger oversight mechanisms and adherence to proper procurement procedures.