CPC INCURRED LOSS OF RS.700 MN ON SPOT TENDERS

PCOI probe on current administration

Ceylon Petroleum Corporation (CPC) had incurred a loss of Rs.700 million when former Petroleum Minister, Arjuna Ranatunga had cancelled three long term tenders and obtained oil by using spot tender methods in 2017 and 2018 the Presidential Commission was informed on Wednesday (Oct 9).

Testifying before the Commission, President of the Ceylon Petroleum Corporation’s Sri Lanka Freedom Workers Union Bandula Saman Kumara noted that the loss was incurred during the arrival of 23 oil tankers to Sri Lanka through that particular period.

“Three long term tenders were decided on to obtain fuel in 2017 and 2018. The first tender was for diesel and petrol between August 01, 2017 and March 31, 2018. Second tender was to import diesel and jet fuel through the same period. The third tender was to purchase petrol,” he informed the Commission.

Testifying before the Commission CPC Deputy General Manager Mahendra Kumara Gunasinghe informed the Commission that the former Minister had tried to cancel the three tenders but he had been on the committees which selected the bidders for three long term tenders.

Chairman of the Commission, retired Supreme Court Judge Upali Abeyratne also observed that the cabinet paper in which the minister had said all three tenders had been given to a single company and that this was a concern to be addressed by the management of CPC.

Gunasinghe said that the tender was given to Petrochina because they had the lowest responsive bid and that they had no objection to the award.

The former Minister had tried to cancel the three tenders but he had been on the committees which selected the bidders for three long term tenders