JVP MP Nalinda Jayatissa said today the Ceylon Petroleum Corporation (CPC) had incurred a loss of Rs.5,838 million because of the purchase of fuel on spot tenders between August 23 and November 3 this year.
He said that the CPC had purchased 12 consignments of fuel on spot tenders because the Petroleum Resources Development Minister had failed to submit the Cabinet paper to purchase fuel on long term tenders.
"The decision of the stock review committee chaired by the subject minister, to purchase fuel on term tenders for 2017 and 2018, was approved by the technical evaluation committee. However, as the minister failed to submit the Cabinet paper on time to make the approved purchase, the CPC had to purchase 12 fuel stocks on spot tenders, resulting in a loss of US$ 38 million," he said.
Minister Arjuna Ranatunga said they wanted to change the system adopted by the previous government, which had offered the tender to a single person, whereas 83 bidders had been registered.
He said a committee was appointed to change the old methodology and added that a mechanism to purchase fuel on long term tenders would be established by March next year.
However, the MP said if the previous system was changed for the better, it should have been beneficial for the country, and said that instead, it had incurred a loss. (Ajith Siriwardana and Yohan Perera)