Twice rejected petrol released to the market

CPC deputy commercial manager claims ministry secretary gave orders
By Bandula Sirimanne

The ongoing probe on the import of contaminated fuel by the state-owned Ceylon Petroleum Corporation (CPC) from the Singapore-based Emirates National Oil Company, is baring some startling details, the Sunday Times learns.

Independent inspectors at the port of loading had declared that the stock of oil purchased from Emirates National Oil Company (ENOC did not conform to CPC standards. Yet, the CPC’s Deputy Commercial Manager had directed that it be loaded.

When the oil cargo arrived in Colombo Port on June 16, a sample had been tested at the laboratory of the Ceylon Petroleum Storage Terminal (CPSTL) Limited. Once again, it was found to be not in conformity with the Corporation’s standard specifications. For a second time, the Deputy Commercial Manager had ordered that the cargo be released to the filling stations on the grounds that it was a directive from Petroleum Industries Ministry Secretary Titus Jayawardena. The Secretary has been transferred to the Pensions Division in the Ministry of Public Administration.

The contaminated fuel deal is being probed by a committee headed by Power and Energy Ministry Secretary M.M.C. Ferdinando. The other members of the Committee are P. Samarakoon, Marketing Manager of the CPC and Piyasena Ekanayake, Project Manager for the Sapugaskanda Oil Refinery.
More than two thousand vehicles developed engine and carburetor problems after they were run on the contaminated fuel. The Ministry has assured compensations but payments have not begun yet.
CPC trade unions are accusing both the Deputy Commercial Manager and the former Ministry Secretary of not following tender procedures.

According to the normal fuel procurement procedure, once offers are received by the CPC, they are submitted to the relevant Technical Evaluation Committee for scrutiny. Thereafter, this committee’s recommendation is submitted to a Special Standing Committee which decides on the selection of acceptable tender.

The successful tenderer is required to have the cargo examined by an independent inspector, acceptable to both the buyer and the seller. This is in accordance with the CPC tender rules and a Pre-Shipment Quality Certificate is given to the Corporation. It is only thereafter that approval is given to ship the cargo.

Fuel bowser owners not paid for months

Bowser owners who transport Ceylon Petroleum Corporation fuel to filling stations countrywide are demanding the immediate payment of about Rs. 450 million owed to them for the transport during the past three months.

CPC Bowser Owners Union spokesperson A.M.M. Adikari said Petroleum Minister Susil Premajayantha had promised to pay the arrears but officials had still not made any payments.

He said that 60% of fuel transport for the CPC was carried out by private bowsers and the delay in paying them had pushed them into serious financial difficulties. He said some bowser owners had decided to boycott the transport of CPC fuel if the arrears were not paid immediately.

Mr. Adikari said the union would consider continuing the transport of fuel if the CPC immediately pay at least the arrears of two months and the balance in installments.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other News Articles
Twice rejected petrol released to the market
800 vehicles stuck at port, row over new directive
JVP, TNA say polls laws blatantly violated
UNP withdraws motions against ministers
Farmers make toxic mistake
Police officers further remanded
Indebted CPC in no position to pay hedging case compensation
Off with them
Four die in dawn bus crash
Age limit for jobs overseas disastrous, says ALFEA
Navy now into restaurant business
Kahawatte killing: A bloodthirsty suspect
‘Spectacular’ coverage for The Gathering
Mother leopard’s fate still a mystery
Milk of human kindness wins family a home
Opposition outgunned
Arsenic – chief suspect, kidney syndrome
HMS Hermes wreck shipshape for plunder
Blackout over Norochcholai power plant
Hospitality industry forerunner of inhospitable vices: Dambulla residents
Five-day week for docs is talking point in health circles
Police choose to ignore MP’s abuse
Myanmar crew mutinies for pay, better facilities
Speeding vehicles on roads driving wildlife to their early graves
Dumbing down of British journalism


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution