Significant losses in CPC and CPSTL due to data tampering uncovered

KPMG’s forensic examination into discrepancies at the Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals Ltd (CPSTL) has uncovered significant financial losses due to changes and erasures in the SAP system managing stock records.

This audit was launched following a complaint by the Power and Energy Minister Kanchana Wijesekera to the Criminal Investigations Department (CID) in August 2022.

Key outcomes from KPMG’s audit were revealed by Minister Wijesekera on X, after the report on sales and distribution processes at CPSTL was presented Wijesekera yesterday. 

Investigations by KPMG and CPSTL audit teams revealed over 1.3 million alterations or deletions in SAP records since 2010, with a majority happening in 2022 amid a severe fuel shortage.

Subsequent to the August 2022 complaint, these modifications significantly decreased in 2023.

The financial discrepancies noted for 2022 resulted in losses of Rs. 28 billion, which decreased to Rs. 4 billion in 2023 following the complaint.

The audit pointed out the reliance on outdated circulars and a lack of sufficient data to pinpoint specific discrepancies.

KPMG is set to deliver the comprehensive audit findings next week. The Minister will then forward the report to the CID for further inquiry and necessary legal actions.

Furthermore, this report will be circulated among Cabinet members, Parliament, the Auditor General, and the Attorney General’s Department to decide on subsequent actions.