A comprehensive forensic audit conducted by KPMG into the operations of the Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals (CPSTL) has unearthed significant discrepancies, primarily attributed to alterations and deletions in SAP data pertaining to stock holdings.
Initiated in response to a complaint filed by the Power and Energy Minister with the Criminal Investigations Department (CID) in August 2022, the audit's major findings were recently briefed to Minister Kanchana Wijesekera. According to the report, over 1.3 million entries in SAP data were altered or deleted since 2010, with a notable surge observed in 2022 during the fuel crisis.
The audit revealed massive losses from stock holdings, amounting to Rs. 28 billion in 2022, which significantly decreased to Rs. 4 billion in 2023 following the lodging of the complaint. The investigation also highlighted the use of outdated circulars and procedures, along with inadequate data availability, contributing to irregularities.
In response to the findings, the complete report will be handed over next week by KPMG and the Minister to the CID for further investigations and legal actions.
In addition, the report will be shared with members of the Cabinet, Parliament, the Auditor General, and the Attorney General's Department to determine the appropriate course of action moving forward.
