Oil racket busted

20 August 2010 08:56 am

By Supun Dias


A major oil racket has been busted by the Special Task Force (STF) with the arrest of some 15 suspects. The STF also recovered over 13,000 liters of diesel and seized 25 bowsers used to transport the oil to various locations.

The STF busted the ring involved in distributing diesel mixed with waste oil also by adding chemicals.

In raids carried out in the Colombo district area the STF seized 137,000 liters of waste oil and 15,000 liters of diesel from hideouts located in Kohilawatta, Korathota, Kirimatiyagara and Kadawatha.

The activities of the major oil racket were uncovered by the Ceylon Petroleum Corporation and they informed Defence Secretary Gotabhaya Rajapaksa.

The Criminal Investigations Department (CID) has taken over the investigations from the STF. The raid was carried out by a special team led by SP Varuna Jayasundere under the Directions of STF commandant DIG K.M.L Sarathchandra, who was instructions by IGP Mahinda Balasuriya.

All together the STF carried out raids on eleven specific locations where the suspects used to mix the diesel with low quality oil. They had bought waste oil that is disposed by ships.

It has been also uncovered that the racket was operated by a family of influential businessman who were involved in distributing furnace oil and diesel after collecting them from the CPC under permits.