• PwC and KPMG shortlisted to conduct audit
• False data entered into computer system 582 times: CID reports
• Potential loss of nearly 3.8 m litres of fuel detected  

The Ceylon Petroleum Corporation (CPC) has shortlisted audit firms PricewaterhouseCoopers (PwC) and KPMG to conduct a forensic audit of the fuel supplier’s Enterprise Resource Planning (ERP) system, which the Criminal Investigation Department (CID) suspects has been misused to pilfer large quantities of fuel during the energy crisis last year, The Sunday Morning reliably learns.

Highly-placed officials at the Ministry of Power and Energy told The Sunday Morning that the CID in a letter dated 1 March had informed the CPC that there was evidence to suggest the ERP software programme SAP used by the CPC had been fed with false information 582 times between 1 April and 15 August 2022, resulting in the theft of fuel.

It is understood that the falsified data entered into the SAP system had enabled fuel bowsers – each with a capacity of 6,600 litres – to be dispatched illegally to various parties over the four-month period. 

The CID believes that during the period, falsified data had been entered into the SAP system 582 times. If proven correct, the scam may have enabled the theft of nearly 3.84 million litres of fuel during one of the most frustrating periods in Sri Lanka’s history. 

According to sources in the CID, the entry of false data into the CPC fuel management and dispatch system had taken place at the Muthurajawela and Kolonnawa storage terminals and nine other regional storage terminals.

When contacted, CPC Chairman Mohamed Uvais Mohamed confirmed that the CID had requested a forensic audit of the SAP system, stating that two audit firms had been shortlisted and that a comprehensive report would be required in three months.

“Yes, we have received the CID request for it. When I took over duties, I also requested a forensic audit because some things were not adding up. PwC and KPMG have been shortlisted to conduct the forensic audit. We are ready to start. Within three months they have to give the report. This is a serious matter. We must bring these culprits to book, they must be punished,” Mohamed said.

The CID had commenced an investigation into the irregularities and losses at the CPC and the Ceylon Petroleum Storage Terminals Ltd. (CPSTL) in August last year, when the Minister of Power and Energy had complained to the Inspector General of Police of alleged theft and malpractice within both organisations.

A petroleum sector expert who wished to remain unnamed told The Sunday Morning that the SAP computerised ERP system had not been audited since its introduction in 2010 with assistance from Lanka Indian Oil Company (LIOC).

Attempts by The Sunday Morning to contact Minister of Power and Energy Kanchana Wijesekera regarding the CID’s findings and what the ministry planned to do failed.