The changes, including a new board of directors, came amidst another suspicious contract in which the CPC has awarded a tender for 40,000 tons of fuel oil to a lesser -known Indonesian company called Bumi Siak Pusako.Industry sources said the CPC bought 15,000 tons of Low Sulphur Fuel Oil (LSFO) at a premium of US $ 84.95 a ton, which is above the Singapore spot quoted price.
Treasury sources said as an initial step immediate action will be taken to strengthen the board of directors, audit committees, procurement systems, financial system as well as employing professionals into key positions in a firm that manages a US$ 5 billion-worth import requirement.
Government assistance to the CPC continued in 2011 by way of treasury guarantees amounting to Rs.11.39 billion. The Treasury has issued a tradable bond of Rs.60 billion in January this year in lieu of the outstanding dues as at the end of 2010 the CPC from Ceylon Electricity Board amounting to Rs. 50.5 billion and other government agencies, the sources said.