Asia/Pacific News
CPC Details Further SLPA Bunkering Irregularities at Hambantota
The national oil and gas company of Sri Lanka, Ceylon Petroleum Corporation (CPC), has highlighted further irregularities with the Sri Lanka Ports Authority (SLPA)'s handling of a failed bunkering operation at its Hambantota port, Sri Lankan media reports.
In addition to the previously reported $19.9 million loss incurred as the result of the seemingly misguided purchase of 17,818 tonnes of substandard MGO, Ananda Palitha, Secretary of CPC's petroleum branch, says numerous other issues could have been avoided had it been consulted by the SLPA's previous administration.
"Without obtaining the expertise knowledge from us, they got these seven tanks built and five of them are now on the verge of sinking. Some tanks are leaking," said Palitha.
It was also noted that the SLPA does not have the necessary technology and lab facilities to check the quality of the fuel once it reaches the port.
"When the oil stock is loaded to the ship, a report is taken to check its standard and once it reaches our port, CPC officers test the stocks to find out whether their findings tally with the report they have obtained at the time of the loading," said Palitha.
"During the previous regime when substandard stocks arrived Colombo, CPC officers were instructed to unload the stock by the politicians, which we had to follow."
The most serious irregularity appears to be the bungled MGO purchase, which at the time was said to have cost the government an inflated $19.3 million and is understood to have since attracted some $6 million in interest.
Irrespective of the terms of the deal, or even the suitability of the product purchased, Palitha questioned why the SLPA was importing bunkers at all.
"The SLPA does not have any permit to import fuel to the country but still imported with the blessings of the [former president] Rajapaksas," he said.
"It is only the CPC that has the permit to import the required fuel to the country and supply to any institution."
The country's new minister for ports and shipping, Arjuna Ranatunga, has vowed to take action against those responsible for bunker related losses.
Last week, Ship & Bunker reported that a decision over the future of bunkering at Hambantota, along with what to do with the unsold fuel, will be taken at a later date.
