Diesel fiasco:
Suspension and reenlistment of Vitol done by CPC director board
Athapattu BANDARA
The suspension of the Singapore-based company, Vitol, from the
registered list of the Ceylon Petroleum Corporation (CPC) in 2009 and
the reenlistment of the company in 2011 were both done in accordance
with the decisions of the CPC Director Board, Petroleum Industries
Ministry sources said yesterday.
The registration of the fuel suppliers is normally done by the
commercial section as per the standard norms and conditions of the CPC.
The registration is done on the approval of the Technical Evaluation
Committee (TEC) and Standing Procurement Committee (SPC).
The suspension of a registered fuel supplier is carried out on the
recommendation of the TEC and SPC.
In 2009, certain power plants of the country were dysfunctional due
to the incompatibility of the specifications of the furnace oil imported
by Vitol. That particular oil stock was purchased for the industrialists
by the CPC authorities.
As a result, Vitol was blacklisted by the then CPC Director Board and
removed from the registered list after legal consultation with the
Attorney General’s Department in 2009.
In 2011, the CPC Director Board again enlisted the company to provide
furnace oil to the Kerawalapitiya power plant as per with the
requirement of the CPC.Vitol then started to supply oil in accordance
with the tender as a registered company.
Therefore, the decision of the suspension or reenlistment of
suppliers are totally being taken by the Standing Procurement Committee
and Director Board decisions.
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