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Harry bought oil from blacklisted Swiss giant; probe by minister

By Bandula Sirimanne

A Cabinet Minister has been called upon to probe allegations that the Ceylon Petroleum Corporation awarded tenders violating procedures. Petroleum Industries Minister Susil Premajayantha, told the Sunday Times “in addition to this move, we have also set up a Stock Review Committee to closely review the tender process.”

He said they would function in addition to the already existing Technical Review Committee.
He warned against the practice of officials contacting fuel suppliers directly and added that international bids should be called.

His remarks came as local agents of registered suppliers of petroleum products protested over repeated CPC tenders being awarded to a Swiss firm, Vitol, regarded as the world’s largest. The same firm had been blacklisted earlier. They charge that these contracts are being awarded at the behest of CPC Chairman Harry Jayawardena. However, Mr. Jayawardena was not available for comment. According to Minister Premajayantha, the Swiss firm had been reinstated by Mr. Jayawardena after it was blacklisted in 2009. “This followed an appeal made by the Swiss firm,” he said. However, trade union sources at the CPC claim that the reinstatement of the Swiss firm had been done without recourse to a proper investigation.

Former Petroleum Minister A.H.M Fowzie is expected to make recommendations to the government on how to curb malpractices and ensure tender procedures are strengthened, CPC sources said yesterday.

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