Loss-making CPC in Rs. 50 m security deal

Whilst the Ceylon Petroleum Corporation (CPC) sends the cost of living skyrocketing by enforcing another fuel price hike on Friday night, it is spending a staggering fifty million rupees on a private security company to guard its oil installations. The deployment of 175 guards from the private company has made the CPC’s own contingent of 300 permanent security personnel redundant. The private security guards have been allowed the use of CPC’s own automatic weapons.

CPC Chairman Asantha de Mel told The Sunday Times the private firm was called in to provide security on the instructions of the Defence Ministry which had decided that security should be intensified. The private security has been deployed in addition to the army guards at the CPC installations.

Mr. de Mel said they were obtaining the services of better trained personnel to ensure security of the installations. CPC trade unions have lodged a strong protest over the move claiming it will be an additional burden to the corporation which is already suffering losses. The CPC on Friday said it was increasing the fuel prices because of heavy losses to the corporation. From Friday midnight, the price of a litre of petrol was increased by Rs. five, diesel by Rs. 4 and kerosene by Rs. 16. It was the fifth price hike in six months.

The move to hire the services of the private security firm also comes amidst reports that the corporation was yet to recover a staggering Rs. 28 billion from state institutions and private traders for the supply of fuel. The main defaulter has been the Ceylon Electricity Board with an outstanding Rs. 15. 8 billion.

The other defaulters are Air Force (Rs. 783 million), Navy (Rs. 854 million), SriLankan (Rs. 569 million), Private power producers (Rs. 380 million) and the Transport Board (Rs. 115 million).

Mr. de Mel said that the corporation was in the process of recovering the outstanding money. But, trade unions expressed skepticism saying previous attempt to recover debts had not succeeded.