A fresh investigation has been launched into how the Ceylon Petroleum Corporation (CPC) lost millions of rupees through the issuance of duplicate fuel subsidy coupons to fishermen. The Department of Fisheries and Aquatic Resources sent a team to the CPC last month to inquire into such a scam that allegedly occurred through a popular fuel [...]

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CPC loses millions in fishing coupon scam

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A fresh investigation has been launched into how the Ceylon Petroleum Corporation (CPC) lost millions of rupees through the issuance of duplicate fuel subsidy coupons to fishermen.

The Department of Fisheries and Aquatic Resources sent a team to the CPC last month to inquire into such a scam that allegedly occurred through a popular fuel station in Trincomalee. The CPC has suspended payments to the Erakkandy Fuel Mart pending invesigations.

A three-member committee was appointed by M.C.L. Fernando, Director General of the Fisheries and Aquatic Resources Department, to investigate the allegations. It is chaired by the Director (Finance) of the Department. The committee is cooperating with the CPC to inspect fuel coupons and to ask questions from relevant officials in this regard. It has still not been found who produced the duplicate coupons.

Meanwhile, the CPC has written to its Area Manager (South) at Magalla in Galle, calling for explanation on unaccounted funds of more than Rs. 8 million related to fishing subsidies. “Between July 2012 and May 2013, your office has provided credit to suppliers amounting to Rs. 831,093,689.84, says a letter to the Manager from the CPC.

“However, only Rs. 822,711,439.84 of this credit is accounted for by way of coupons,” it continues. “Therefore, there is a lack of information regarding Rs. 8,382,250.00.” The case has now been handed over to the Criminal Investigation Department.
An internal audit conducted in the CPC in 2013 revealed a large-scale scam involving subsidy coupons. The “duplication of credits given to dealers” in the Jaffna, Batticaloa, Nugegoda, Galle and Kurunegala had caused losses of more than Rs. 3 million. The audit report says, however, that these have been “corrected” by now.

“These coupons are equally distributed to fishermen even in the monsoon period when no fishing is carried out by small boats,” the report states. “Therefore, this is a money distributing mechanism causing huge interest costs to CPC as the Fisheries Department is not settling the due to CPC.”

“There are instances when attempts have been made to change the serial numbers of the coupons,” the report continues. “We have a risk of granting credits for forgely [sic] printed coupons. Internal Audit is carrying out this audit only with Excel facility.”
“As the coupon number has tremendously increased we are unable to ensure whether there is any duplication using Excel Programme,” it maintains. “The number of vouchers has already reached the level where Internal Audit cannot detect and search for duplications.”

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