Shocking details of how loss-making state-run Ceylon Petroleum Corporation has over paid millions of rupees as commissions to its dealers without considering the stipulated official procedure have been revealed in a recent audit inspection report of the Auditor General’s Department.
With the aim of streamlining the payment of commission to dealers the Board of Directors has taken decision (Board paper No05/12/31) to change existing practice of paying 2.5 percent of the price per litre of fuel to 3 percent fixing upper and lower limits (upper and lower caps).
Accordingly the dealers commission has been increased with effect from 30-06- 2019 fixing the upper cap for 92 petrol as Rs 167 and lower cap Rs 117.
This means even if the price of 92 petrol is increased to over Rs.167 or decreased to below the limit of Rs117 the commission will remain unchanged as 3 percent, similarly for 95 petrol the upper cap was fixed at Rs 170 and lower cap Rs.128.
The price of fuel has been increased on 21- 06-2021 and the price of 92 petrol increased to Rs 157 from Rs 117 the previous price in 2019 and the 95 petrol to Rs. 184 which has gone up beyond the upper cap of Rs.170.
However the CPC has paid Rs 5.52 per litre of 95 petrol calculating 3 percent of Rs.184 although it should have been Rs.5.10.
The over payment of around Rs 4 billion had been paid during the period of 11-06-2021 to 15-07-2022, the Auditor General’s inspection report revealed.
According to this report the commissions of Rs.10.59 billion was paid to dealers in 2017,Rs. 13.54 billion in 2018 Rs.14.13 in 2019, Rs.12.40 billion in 2020, and Rs.14.48 billion in 2021.
When Petrol 92 was priced at Rs. 470 per litre, CPC paid Rs. 14.10 in commission per litre whereas, according to the fixed upper limit cap price, it should have only been Rs. 4.86.
The CPC has initiated action to recover this money from dealers in four installments by issuing circular on 10 -03- 2022 a top official of the CPC said.
He added that four dealers filed a petition at the Colombo District Court to find redress on the payment and Court issued an interim injunction restraining the payment to CPC and it was revoked on 15-07-2022.
The official noted that the court had also granted the approval to claim the overpaid commissions from all its dealers in Sri Lanka.
With this court order, The CPC will be able to recover Rs. 4.3 billion from roughly 700 fuel stations and save a minimum of Rs. 50 million on a daily basis.
Ceylon Petroleum Corporation over pays Rs 4 billion for dealers
No dollars to pay for four fuel ships. Three stalled at Port
The government has failed to allocate dollars required to pay for four fuel ships, reportedly an amount of US $ 150 million, sources said.
Among the four vessels are two diesel ships and one ship carrying crude oil which have already been stalled at the Colombo Port and tomorrow (12) another ship carrying petrol is set to sail.
Only a part of the amount due for one ship carrying diesel has been paid so far, according to sources.
The Central Bank of Sri Lanka (CBSL) had raised their objection to a proposal by the government for the Ceylon Petroleum Corporation (CEYPETCO) to purchase dollars from the black market to settle the payments for the fuel stocks, in its claim of having enough money.
However, the CBSL’s promise of paying for these vessels from its financial sources has not been fulfilled to date, hence the latter problem.
MIAP
If state ministers fail to serve, remove them within six months: Diana
If the newly appointed state ministers fail to serve their duties properly, they should be removed within a period of six months, said State Minister of Tourism Diana Gamage, responding to a query by radio channel.
The new State Minister said this condition should apply to her as well.
“There is a system in this country which has been practiced for a certain period of time. Just because State Minister are appointed, they cannot just sit at home, receive all the benefits and do nothing. Even I tell personally, that if I fail to serve my duty, if we fail to do something that is felt within six months, we should step back definitely. Otherwise, we should be removed. Because we take a responsibility in a country; a challenge. We should be prepared to face that challenge,” Gamage said.
She continued: “So, these ministries are given one by one to save this country through them. One who possesses a Cabinet Ministry cannot do everything. When a Cabinet Ministry is given, they can put forward a Cabinet paper. A Cabinet Minister has many heavy responsibilities. Accordingly, this should definitely be divided among the rest as responsibilities. That is why these duties are entrusted with; to continue this programme. Otherwise, even I personally say that I should be inspected. If I do not do my work, remove me and put someone who can.”
MIAP
SLPP won a 6.9 million mandate by setting RW as bait: Dullas Alahapperuma
The Sri Lanka Podujana Peramuna (SLPP) then had won a 6.9 million mandate by setting up a bait known as ‘Ranil Wickremesinghe’, said MP Dullas Alahapperuma, speaking to a rally organised by the ‘Nidahasa Janatha Sabha’ in Kandy yesterday (10).
“Today, some people who appear themselves as leaders of this party hold press conferences in Nelum Road everyday. When this party was formed, it was called GL’s garbage sewer. The bait known as Ranil Wickremesinghe was shown,” Alahapperuma said.
The former Minister went on: “Setting that bait up, the 6.9 million mandate was won. It was called the Great CBSL Bond Scam in Broad Daylight. It was called the Easter Attack. The defendant whom we pointed our finger at was chosen as the answer to this political disaster. The 6.9 million mandate was violated. Not only the economy, the entire 6.9 million mandate has now been gang-raped, oh lord. Therefore, we, as Nidahasa (Freedom) decided to stand up to it.”
MIAP
Outgoing Russian Ambassador to Sri Lanka pledges to foster bilateral relations
The outgoing Russian Ambassador to Sri Lanka Ambassador Yury Materiy for his part, pledged to do his utmost to foster bilateral relations between the two countries even though he is leaving Sri Lanka after completing his tenure.
President Materiy, who has ended his term in Sri Lanka, said that he will continue to work to strengthen the relations with Sri Lanka.
He further stressed the need to enhance ties and develop the tourism industry between the two countries.
He expressed these views when he called on President Ranil Wickremesinghe at the Presidential Secretariat recently..
President Wickremesinghe thanked Ambassador Materiy for his service rendered to Sri Lanka as the Ambassador of Russia.
Sri Lanka has reached out to Russia for assistance notwithstanding the stringent sanctions thrashed out by the US and EU against the latter.
Colombo is keen to resume flight services with Russia with the hope of boosting tourist inflow.
The Russian state-owned carrier Aeroflot suspended operations some times back after its flight carrying 191 passengers and 13 crew members was not allowed to take off from Colombo’s Bandaranaike International Airport on account of a payment dispute.
Sri Lanka, which is amid the worst economic crisis since its independence, has also asked Russia to provide fuel to tide over the situation .
Russia has also expressed support towards Sri Lanka in bilateral and multilateral fora.
The President stressed the need of further consolidating cooperation, with particular attention to enhancing business ties, tourism and connectivity.
Notably, this year marks the 65th anniversary of establishing diplomatic relations between Russia and Sri Lanka.
The two countries confirmed commitment to developing further friendly bilateral ties in the context of the 65th anniversary of diplomatic relations between the two countries being marked this year and agreed to continue contacts at various levels.
He also wished President Wickremesinghe the strength to take Sri Lanka out of the economic crisis and establish a stable country.
President Wickremesinghe wished Ambassador Yury Materiy success in all his future undertakings and thanked him for all the assistance rendered during his tenure in Sri Lanka.
Coal supply in severe crisis..!
The supplier who tendered the lowest bid for coal supply in compliance with the government’s procurement policy has informed that it will not supply coal stocks to Sri Lanka until the allegations levelled against it are legally cleared.
The supplier has informed the matter during the discussion held between its representatives and the officials of the Ceylon Coal Company two days ago (09), revealed Energy Minister Kanchana Wijesekara.
The situation has led to discussing alternate proposals for the procurement of coal to be implemented until the legal matter is solved, Wijesekaara said a social media note.
The tender for the purchase of 4.5 million tonnes of coal was awarded to the lowest bidder, Blacksand Commodities, a company in Dubai, on August 25, 2022 and the deal was accused of being corrupt by a number of parties, whilst several others had taken legal action against the deal, driving the procurement of coal into a severe crisis.
The existing coal stocks in Sri Lanka suffice for until October 20, and the occurrence of a deep power crisis due to the shut down of the Norochcholai Power Plant may be inevitable, can coal not be procured before then.
MIAP
SL President intervenes to clear obstacles blocking Indian funded projects
President Ranil Wickremesinghe has instructed officials to clear obstacles blocking the progress of Indian funded projects in Sri Lanka.
He advised officials to immediately revise circulars if it impedes the implementation of development projects.
It has been observed that the Mannar-Pooneryn wind power plants granted to Adani Green Energy Limited, the West Container Terminal in which Adani Ports has a controlling stake; and the proposed joint venture solar power plant in Sampur with India’s National Thermal Power Corporation are among the projects New Delhi was keen to fast-track.
According to informed sources ,it was unlikely that more credit lines are to be secured from India for fuel, even though there could be a $1 billion swap but not for oil.India was also facing difficulties in procuring oil supplies, it added.
In the ongoing economic crisis, India has provided Sri Lanka with credit lines for fuel, fertilizer and essential commodities worth US$ 3.5 billion.
India’s support and soft loans to the tune of $3 billion to Sri Lanka without any conditions are simply to ease the country’s crisis situation.This has made Sri Lanka meet some of the IMF’s conditionalities regarding the restructuring of debt.
India is presently working closely with US-Japan and Australia. These four countries work in close cooperation through the Quadrilateral Security Dialogue
The President chaired a discussion at the President’s Office recently to examine the progress of several development projects in the country based on Indian investment cooperation, the President’s Media Division said.
Deputy High Commissioner Vinod K. Jacob also participated at the discussion. The President instructed the ministry secretaries and government officials to take steps to resolve the obstacles that have arisen in the progress of several projects in Sri Lanka under Indian investments.
President Wickremesinghe explained the need to correct the provisions contained in the circulars issued periodically by previous governments if they hinder development.
President’s Chief of Staff and Senior Advisor on National Security Sagala Ratnayake, Secretary of the Ministry of Power and Energy Mapa Pathirana and other ministry secretaries and government officials attended the discussion.
Outgoing Russian Ambassador to Sri Lanka pledges to foster -bilateral relations
The outgoing Russian Ambassador to Sri Lanka Ambassador Yury Materiy for his part, pledged to do his utmost to foster bilateral relations between the two countries even though he is leaving Sri Lanka after completing his tenure.
President Materiy, who has ended his term in Sri Lanka, said that he will continue to work to strengthen the relations with Sri Lanka.
He further stressed the need to enhance ties and develop the tourism industry between the two countries.
He expressed these views when he called on President Ranil Wickremesinghe at the Presidential Secretariat recently..
President Wickremesinghe thanked Ambassador Materiy for his service rendered to Sri Lanka as the Ambassador of Russia.
Sri Lanka has reached out to Russia for assistance notwithstanding the stringent sanctions thrashed out by the US and EU against the latter.
Colombo is keen to resume flight services with Russia with the hope of boosting tourist inflow.
The Russian state-owned carrier Aeroflot suspended operations some times back after its flight carrying 191 passengers and 13 crew members was not allowed to take off from Colombo’s Bandaranaike International Airport on account of a payment dispute.
Sri Lanka, which is amid the worst economic crisis since its independence, has also asked Russia to provide fuel to tide over the situation .
Russia has also expressed support towards Sri Lanka in bilateral and multilateral fora.
The President stressed the need of further consolidating cooperation, with particular attention to enhancing business ties, tourism and connectivity.
Notably, this year marks the 65th anniversary of establishing diplomatic relations between Russia and Sri Lanka.
The two countries confirmed commitment to developing further friendly bilateral ties in the context of the 65th anniversary of diplomatic relations between the two countries being marked this year and agreed to continue contacts at various levels.
He also wished President Wickremesinghe the strength to take Sri Lanka out of the economic crisis and establish a stable country.
President Wickremesinghe wished Ambassador Yury Materiy success in all his future undertakings and thanked him for all the assistance rendered during his tenure in Sri Lanka.
Today, violence can only be solved by repression (VIDEO)
Former Minister Namal Rajapaksa addressing a rally yesterday (10) said had Mr. Gotabaya Rajapaksa enforced law against violence back then, the situation today could have been different.
“They’re speaking of a repression now. If a house was set on fire, the person responsible should be arrested. If a person was murdered on the road, had someone somehow influenced to commit violence and law was not enforced against them, discipline, my dear mother, father, brother and sister, can never be established in the country,” he said.
The eldest Rajapaksa son continued: “President Gotabaya Rajapaksa, I believe, could’ve done that then. But for some reason, that didn’t happen. Had President Gotabaya enforced law against those inciting violence, those spreading violence via social media to set fire, to commit murder, the situation today could’ve been different. But we’re pleased that President Ranil is serving that matter. There’s no problem with the ‘Aragalaya,’ but I have a problem with the protesters of that Aragalaya and the manner in which the Aragalaya was navigated. Today, there is no solution to violence other than repression.”
MIAP
Major shipping company adjusts ship routes to save Sri Lankan blue whales
The world’s largest shipping and logistics conglomerate, MSC Group, is adjusting its ship routeing south of Sri Lanka to reduce collision risk with endangered blue whales after environmental NGOs OceanCare and IFAW (International Fund for Animal Welfare) approached MSC Group to help protect these whales.
The decision means that transiting MSC container ships will now avoid an area where the majority of the northern Indian Ocean blue whales population are known to congregate.
The waters off the southern tip of Sri Lanka present a challenge to mariners because of the high risk of collisions with blue whales, whale watching boats and small fishing vessels.
Unusally for the species, Sri Lankan blue whales are found in these waters year round, and the current international shipping lanes off Dondra Head take ships right through the area with the most whales and whale watching activity.
“By making these small changes, MSC is making a significant difference for these endangered whales. Whales often die as a result of collisions and this population is at risk.
Ship strikes are both a conservation and a welfare problem, and even one whale being hit is one too many,” comments Sharon Livermore, Director of Marine Conservation at IFAW.
“Re-routeing is the key hope to turn the tide for blue whales off Sri Lanka. It also demonstrates to the Sri Lankan government that now is the time to take appropriate action and move the shipping lane out of blue whale habitat for all merchant vessels” states Nicolas Entrup, Director International Relations at OceanCare.
Scientific surveys of blue whale distribution conducted off Sri Lanka in the current shipping lanes and further offshore found that if shipping were to transit 15nm south (offshore) of the current routes, the risk of ship strikes to blue whales would be reduced by 95 percent.
The World Shipping Council, other key shipping industry organisations and the International Whaling Commission are all fully supportive of establishing a recognized shipping route further offshore, both to protect whales and to improve shipping safety.
However, calls to the Government of Sri Lanka have been unheeded to date. By choosing to transit further offshore, MSC is proactively putting the re-routeing option into practice, but the majority of shipping still transits through the whales’ core habitat.
In June, in response to outreach by IFAW and OceanCare, the German Shipowners Association (VDR) also called upon its members to re-route.
The next step is for the Sri Lankan government to bring forward a proposal to the International Maritime Organization to make the safer, offshore route an official Traffic Separation Scheme.
Blue whales (Balaenoptera musculus) are the largest living animals on earth with an estimated life span of 80 to 90 years.
Blue whales off Sri Lanka grow to around 25 metres in length and are vocally distinct from other blue whales. Blue whales are listed as ‘endangered’ on the IUCN Red List.
The waters from the southwest to eastern Sri Lanka have also been identified as an Important Marine Mammal Area (IMMA) by the IUCN SSC-WCPA Marine Mammal Protected Area Task Forc
SME sector demands permission to import items cannot be manufactured locally
In the wake of worsening foreign exchange crisis that forced the Sri Lankan government headed by President Ranil Wickremsinghe who is the Finance Minister of the country to impose a temporary import ban on 367 item to save hard currency, hundreds of businesses are fighting for survival. Smaller ones have shut down, costing many their livelihoods.
A large number of small businessmen and women ,SME operators , induatrialists , and importers have urged President Ranil Wickremsinghe to consider the plight of affected sector and persons depending on it to conduct a comprehensive review on the impact of this decision and lift the restrictions on some of these items essential for the sector even increasing taxes ata reasonable rate.
They noted the procedure proposed by the Central Bank to allow the imports of some banned items considering case by case by crony officials on the directions of the Central Bank and Finance Ministry top officials with hidden agenda against the President will never help to solve the problem.
W.A. Wijewardena, a former deputy governor at the central bank, said that reserves in Sri Lanka have fallen to a critically low level, causing forex to disappear from the formal market.
The import of over 300 items has been temporarily suspended with effect from August 23 under the Import and Export Control Act through a government notification by the Finance Ministry.
It further states that importation of any goods, specified in these Regulations, by any approved enterprises for processing and re-export purposes may be allowed by the Controller General of Imports and Exports Control on recommendation of the Secretary, Ministry of Industries or Director General, Export Development Board of Sri Lanka, case by case basis.
The host of items included in the list range from chocolate and other food preparations containing cocoa, condensed milk, yogurt, coconuts, Coconut base arrack, roses to perfumes, beauty or make-up preparations, deodorants, dental floss and trunks, suit-cases, brief-cases to various clothing items.
While continuing the import restrictions, permission to import goods that cannot be manufactured locally, and the required raw materials to engage production, should be granted, Sri Lanka United National Businesses Alliance (SLUNBA) Chairperson Tanya Abesundara said.
She addressed an opening ceremony in Nugegoda, saying the SLUNBA had requested the government to provide the infrastructure to uplift local manufacturing.
“The government should not rely on exports and dollars; instead, it should improve domestic manufacturing and industries to protect the rupee in the country; it is not rocket science to be unaware of the current situation,” she said.
While commenting on the recent tax amendment, the chairperson said to collect tax, local industries and companies should be stable and money should be with the people.
Otherwise, the tax cannot be collected. “The decision taken to privatize several government institutions is a wise decision taken by the government.”
Most of the employees get their wages without deductions. The backbone of the country’s economy is the private sector companies.
“The decision to privatize state entities in the country would help to settle the debts,” she added.