February 17, Colombo (LNW): In a significant revelation, Power and Energy Minister Kanchana Wijesekara announced that a forensic audit conducted by KPMG has unveiled several major irregularities in the sales and distribution of petroleum products from Ceylon Petroleum Storage Terminals Ltd (CPSTL).
The forensic audit, initiated following a complaint filed by the minister with the CID in August 2022 regarding irregularities at Ceylon Petroleum Corporation (CPC) and CPSTL, has brought to light numerous concerning findings. The CID, after preliminary investigations, recommended a comprehensive forensic audit to delve deeper into the matter.
The KPMG investigation officials conducting the forensic audit discovered over 1.3 million entries changed or deleted from the main database since 2010. Notably, a significant portion of these alterations occurred in 2022 during the peak of the fuel crisis. However, following the minister’s complaint to the CID in August 2022, the number of changes significantly decreased in 2023.
The irregularities identified have resulted in massive losses amounting to Rs. 28 billion in stock handling procedures in 2022. Minister Wijesekara stated that after filing the complaint, the losses reduced to Rs. 4 billion in 2023.
Furthermore, the audit revealed a lack of adequate data within CPSTL for smooth operations and the identification of irregularities. Outdated circulars and procedures were also identified as being in use. The comprehensive forensic audit report is expected to be submitted to the ministry by KPMG next week, after which it will be handed over to the CID for further investigations and appropriate legal actions. The report will also be shared with the Cabinet of Ministers, Parliament, Auditor General, and the Attorney General’s Department to determine the necessary steps moving forward.
