Saturday, January 14, 2012

Harry Jayawardena resigns as CPC Chairman

Harry Jayawardena has resigned as the Chairman of the Ceylon Petroleum Corporation (CPC) according to sources.

Petroleum Ministry sources added that the business tycoon had handed in his resignation to Minister Susil Premajayantha yesterday (Jan 13).

The prominent Sri Lankan businessman was appointed Chairman of Ceylon Petroleum Corporation in May, 2010.
It is learnt that the Minister has been angered by a recent decision taken by Mr. Jayawardane in the supply of fuel to the CEB for power generation through the Kerawalapitiya plant.
As a result, the Minister has reportedly complained to President Mahinda Rajapaksa against the CPC chairman. Also, at a meeting with trade union leaders yesterday, Mr. Premajayantha said that there would be changes in the top posts of the CPC very soon.
The CPC has been run at a loss for years. Its total losses had accumulated to Rs.27.21 billion by the middle of the last year.  Corruption, mismanagement, over staffing have been cited as the reasons for such losses.  Besides, the CPC provides fuel to various state institutions at a subsidized rate, and it too has added to the total losses of the institution. 
The CPC also incurred heavy losses due to the import of 20,000 tons of petrol of inferior quality last year through the involvement of some top officials of the Ministry. The institution is still in the process of paying compensations to the owners of vehicles damaged due to the use of such substandard petrol. Equipment at filling stations was also damaged after the use of petrol from this stock. 

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