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CPC, IOC battle hots up
The Ceylon Petroleum Corporation has complained to the Public Enterprises Reform Commitee that the Indian Oil Company is engaged in irregular practices in wooing local filling stations.

CPC officials said a filling station owner in Gampaha had been offered Rs. 200,000 to sign a contract with their company. But the owner declined the offer and complained to the CPC. The CPC’s Gampaha area manager has complained that several other dealers had also made similar complaints.

In another case, the CPC officials alleged that an IOC official accompanied by a local politician had visited a filling station run by a co-operative society in Urubokka, Matara canvassing for the signing of an agreement.

A senior Lanka IOC official denying the allegations said that his company offered money to filling stations that had signed agreements with it to improve facilities in terms of its contract with the CPC. Under the CPC-IOC agreement, 100 filling stations fully owned by the CPC have been handed over to the IOC. In addition they have been given an opportunity to sign up contracts with private filling station owners. The IOC had managed to sign 30 such contracts.

However a CPC official said offering financial inducements to enter into agreements was illegal. PC chairman Daham Wimalasena when contacted by The Sunday Times expressed concern over the issue and said the matter was being taken up with PERC

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