Description
In August 2022, Member of Parliament and then General Secretary of the Sri Lanka Freedom Party (SLFP), Dayasiri Jayasekara alleged that a multi-million oil scam has been committed in Sri Lanka when importing oil[i]. He stated that a newly established company called “Coral Energy PLC” (with a lack of information about the beneficial ownership of the company) has been selected by the government to purchase oil from, violating the procurement procedures.
According to him, Coral Energy PLC in an agreement with the Ceylon Petroleum Corporation (CPC) imported almost 100,000 metric tons of Urals crude oil, while documenting and charging the price of Brent Crude oil which is higher in price than the former. Ultimately providing Sri Lankans with lower-quality crude oil for the price of a higher-quality one.
For the Ural oil shipment, the actual price would be USD 51.027 million (for 99673 Metric tons) but Sri Lanka paid the Brent price which was USD 82.209 million.
The difference (loss) is USD 30.938 M.
What is the corruption
- Alleged violation of the procurement procedure
- Monopoly in oil importation
- Lack of transparency from State Owned Enterprises (SOEs)
- Inefficient check and balance system within government enterprises
Monetary value involved
Loss of USD 30.938 M
What has been done
The Opposition party, Samagi Jana Balawegaya (SJB)raised concerns on the crude oil procurement process[ii]. The issue was brought up in Parliament during the debates, and the Ceylon Petroleum Corporation (CPC) denied the allegations[iii].
What can be done
- Citizens, civil society, media and professionals advocate for regulation of the procurement procedure to address corruption risks in spot procurement and unsolicited proposals.
[i] https://www.dailymirror.lk/front_page/Dayasiri-questions-crude-oil-deal/238-246335
[ii] https://www.themorning.lk/articles/215249
[iii] http://www.adaderana.lk/news/85395/cpc-denies-dayasiris-claims-on-misappropriations-in-fuel-imports
