- ‘Jathika Sevaka Sangamaya’ claims high per barrel and demurrage costs to Coral Energy DMCC linked to Namal, Yoshitha
- Yoshitha and Namal deny allegations, Namal calls for independent investigation
- Energy Ministry says anyone can challenge procurements in court
BY Safrah Fazal and Ruwani Fonseka
Ceylon Petroleum Corporation (CPC) Jathika Sevaka Sangamaya (JSS) Secretary Ananda Palitha has alleged that at a time when the country is facing a shortage of United States dollars (USD), the Government is paying exorbitant rates per barrel of fuel and in demurrages to the UAE-based intermediary, Coral Energy Company, which has links to Yoshitha Rajapaksa and Government MP Namal Rajapaksa, although both have denied all such allegations.
Speaking to
The Morning on Monday (15), Palitha claimed: “We have received reports that certain companies have forwarded proposals to provide a premium barrel of fuel at as low as $ 5. In the wake of the US dollar shortage, the Government is paying up to $ 20-34 for a premium barrel of fuel purchased through this intermediary, Coral Energy Company. All these dealings are not through tenders, but through unsolicited proposals.
“These are fraudulent agreements that are being carried out. These are all cash dealings. Through the Indian credit line, we paid $ 17-19 per premium barrel of diesel and petrol. The Indian Oil Corporation (IOC) is paying as low as $ 1.8-6 per premium barrel of fuel. When we can buy at the same rate as the IOC, we are not doing so because this is handled by the fuel mafia that is still under the control of the Rajapaksa family.”
He further claimed that large sums have also been supplied to the aforementioned company in demurrages.
“They bring these ships to the Sri Lankan maritime border, and then pay large sums in demurrages to this company. On 16 July, we paid demurrages of over $ 600,000 for a diesel consignment for 14 days to this company at a rate of $ 18,000 per day. On 25 April, we paid demurrages for the crude oil shipment for 34 days at a rate of $ 120,000 per day. The usual rate for a crude oil shipment is $ 25,000 per day in demurrages, but we have paid this company $ 120,000 per day. These are carefully planned dealings by the previous ruling family. A Qatar company, under the control of Yoshitha and Namal Rajapaksa, pumps money into Coral Energy Company. This is theft being carried out in broad daylight.”
He further pointed out that with the reduction of fuel prices in the global market, the prices of petrol and diesel could also be reduced.
“We can reduce petrol and diesel prices by about Rs. 70, but they cannot do this because of the fuel mafia and the high prices that they pay per barrel.”
Palitha also alleged that the consignments of petrol, diesel, and crude oil received by the country in the recent past have been through the aforementioned company, adding: “All this began around the time that the protests began.”
When
The Morning contacted officials of the Ministry of Power and Energy, they stated that the fuel shipments that have arrived and are arriving are not only through the Coral Energy Company.
“We have other companies supplying fuel, not just the Coral Energy Company. We have asked companies to come forward and submit their proposals if they can provide fuel. We received some proposals, where we evaluated them and gave the approval. If there are companies that are able to provide fuel for lower prices, then they can go ahead and submit proposals and follow the guidelines.”
The said officials denied having any knowledge of the price per premium barrel of fuel being paid to the Coral Energy Company, saying: “If anyone has any doubts with regard to the procurement of fuel, they can go to the courts.”
In terms of demurrages, one official said: “It is true that we have paid this company in demurrages, but this information can only be obtained through the CPC.”
Furthermore, when
The Morning queried the officials as to whether they knew of any links of the previous ruling family with the said Coral Energy Company, one official denied such knowledge, whilst the other said: “These are just statements. If there is such a link, then there should be documents proving this.”
Meanwhile, speaking to
The Morning yesterday (16), Yoshitha Rajapaksa said that neither he, nor his family, has any links to this company, stating: “I have no connection with this company, and I am certain that my brother (a reference to Namal Rajapaksa) has no connection with this company either. The Rajapaksa family does not have anything to do with this company.”
Namal Rajapaksa also denied all allegations levelled against him and his family in regard to links to the Coral Energy Company. Speaking to
The Morning yesterday, he said: “There is no Qatar company as such. The one Rajapaksa who is in the Board of Directors is not from our family, nor is he related to us. The said company had clarified this earlier. I strongly deny all such claims and insist that an impartial investigation be carried out pertaining to this.”
He further noted that such rumours have been spread by Parliamentary Opposition parties.
“The Opposition is hurling many accusations, and are attempting to politicise everything. An investigation should be conducted in this regard. They are diverting attention towards the Rajapaksa family so that the actual people involved in the malpractice will remain hidden. None of the Rajapaksas have been involved in fuel procurements.”
Attempts to reach Minister of Power and Energy Kanchana Wijesekera, CPC Chairman M. Uvais Mohamed, or CPC officials in this regard proved futile.