CPC ordered to clean up its act, improve image
View(s):The Treasury has ordered a complete overhaul of the corruption-tainted Ceylon Petroleum Corporation (CPC) aimed at improving its image as an organization ridden with problems. Treasury Secretary Dr. P.B. Jayasundera has told a 2013 budget preparatory meeting that the CPC should be managed on the basis of the private sector’s best practices and professionals should be appointed to key positions in the audit, procurement and finance departments, Treasury sources said. The Treasury Secretary, while noting that the image of the organization needs to be improved, has said it was not running to its full potential and unable to contribute to economic growth.
The changes, including a new board of directors, came amidst another suspicious contract in which the CPC has awarded a tender for 40,000 tons of fuel oil to a lesser -known Indonesian company called Bumi Siak Pusako.Industry sources said the CPC bought 15,000 tons of Low Sulphur Fuel Oil (LSFO) at a premium of US $ 84.95 a ton, which is above the Singapore spot quoted price.
Treasury sources said as an initial step immediate action will be taken to strengthen the board of directors, audit committees, procurement systems, financial system as well as employing professionals into key positions in a firm that manages a US$ 5 billion-worth import requirement.
Government assistance to the CPC continued in 2011 by way of treasury guarantees amounting to Rs.11.39 billion. The Treasury has issued a tradable bond of Rs.60 billion in January this year in lieu of the outstanding dues as at the end of 2010 the CPC from Ceylon Electricity Board amounting to Rs. 50.5 billion and other government agencies, the sources said.
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