• Tissa says $150 paid to UAE’s Coral Energy when barrel is less than $ 100

BY Safrah Fazal   Samagi Jana Balawegaya (SJB) Opposition MP Tissa Attanayake alleged that were several issues with the procurement process of the crude oil shipments, as a minimum of $ 150 per barrel has been paid to the UAE-'based Coral Energy Company, when a barrel of crude oil can be purchased at less than $ 100. Speaking at a media briefing held yesterday (22), Attanayake said: “It has been reported that a consignment of 100,000 metric tonnes (MT) of crude oil has reached the country, and that another shipment of 120,000 MT will reach the country towards the end of the month. But, we have some concerns with the mechanism of the procurement of this crude oil. The type of crude oil that they have brought down is called Urals. “Although the Government announced that the crude oil is being brought from Russia, it was in actuality through the UAE based Coral Energy intermediary Company. So, it is through a third party that the oil was brought down. There are many shortcomings in the procurement process. The country must know that a barrel of Urals crude oil is priced at less than $ 100, but it has been purchased by the Ceylon Petroleum Corporation (CPC) at $ 117. “They have also paid $ 18-20 as premium per barrel. Additionally, each day they are compelled to pay $ 50,000 in demurrages. Hence, collectively, we spend a minimum of $ 150 per barrel of Urals. Why are they doing this?” Speaking further, he charged: “The two types of crude oil which are routinely imported for the Sapugaskanda Oil Refinery are Murban and Siberian Light which can be purchased at $ 90-100 per barrel. You can also go for lower prices. Despite this, the Urals Russian oil has been procured through a third party. This is due to some underhand dealings. It is no secret as to who is behind this. Although the Coral Energy Company is the third party here, the ones behind the curtain are those who have been accused of corruption and theft in the country.” Following several allegations against the CPC’s procurement and distribution processes of fuel, Minister of Power and Energy Kanchana Wijesekera, on 18 August, said that he had lodged a complaint against the CPC and the Ceylon Petroleum Storage Terminals Limited (CPSTL) with the Criminal Investigation Department (CID). “Today, I lodged a complaint with the CID to investigate the activities of the CPC and the CPSTL. I requested to investigate fuel procurement, the evaluation of proposals, the non-placement of orders, the selection of suppliers, delays in payments, distribution related irregularities and allegations made by individuals.” While urging Wijesekera to immediately look into the “fuel mafia”, Attanayake said: “He has approached the CID for an inquiry into the fuel procurement and distribution, but that alone isn’t sufficient. The procurement of Urals was wrong. So we ask that he look into this. There are officials who are involved in this, and there are other companies involved in this, and therefore, somehow act against these.” Attanayake also claimed that the supply of jet fuel for aircrafts, which is mostly supplied by the Sapugaskanda Oil Refinery, is to be handed over to the Coral Energy Company. “If the contract to supply jet fuel is also given to this Company, there won’t be anyone to sell the jet fuel made at Sapugaskanda. Has the Government perceived the gravity of this? Through the supply of jet fuel over the recent past, the Government has made profits of over $ 25 million per month. The Government gets paid for jet fuel in US dollars, and now these US dollars are also pumped into Coral Energy”. Last week, when The Morning contacted a senior official at the Ministry of Power and Energy with regard to the procurement of jet fuel, he affirmed that the Coral Energy Company was among the suppliers of jet fuel. “Yes, we have ordered jet fuel through Coral Energy, but it is not the only Company.” CPC Chairman M. Uvais Mohamed was unavailable for a comment.