2007 - Ceylon Petroleum Corporation

Report of the Auditor General
49
Auditor General’s Comments
2.2.6 Non-Compliance with Laws, Rules, Regulations and Management Decisions
The following instances of non-compliance were observed in audit:
Chairman’s Observations
Reference to Laws, Rules,
Regulations and
Management Decision
(a) Department of Public
Enterprises Circular
No. PED/12 of
2nd June 2003
(i) Paragraph 3.2
(ii) Paragraph 6.1
(iii) Paragraph 8.3.4
(iv) Paragraph 8.3.5
(v) Paragraph 8.7
(b) Department of
Public Enterprises
Circular No. 130 of
18th March 1998
(c) Letter dated
19th February
1990 issued by the
Ministry of Policy
Development and
Implementation
Non-Compliance
The Board of Directors of the Corporation did not
contain at least one member in the field of petroleum,
which is the main subject of the Corporation.
Draft Annual Report for the year under review had
not been submitted to the Auditor General.
The specified limits on telephone expenses which
should be maintained by the Corporation according
to the hierarchy of the officers had been increased
without the approval of the General Treasury.
Officers who were not entitled to assigned motor
vehicles had been assigned with motor vehicles
on the approval of the Board of Directors or the
Chairman contrary to the Circular instructions.
Fuel limits for such assigned motor vehicles had been
decided either by the Board or by the Chairman.
In addition to that, the Chairman had granted
approval to certain officers to claim reimbursement
of the value of 100-120 litres of fuel per month for
travelling between their residences and office in
their private motor vehicles.
The Corporation had paid a sum of Rs. 579 Mn as at
31st December 2007 as PAYE tax on behalf of the
employees contrary to the Circular instructions.
Rate of interest on staff loans had been reduced
from 7.2% to 4.2% without the authority of the
General Treasury. The amount under recovered for
the year under review amounted to Rs. 24 Mn.
Services of private Lawyers at a higher rate had been
obtained without obtaining prior approval of the
Attorney General. The amount so paid to the private
Lawyers during the year under review amounted
to Rs. 5 Mn.
Noted
Noted
Awaiting reply from Treasury.
Has been decided on a case-by-case
basis in order to maintain the smooth
functioning of the organisation.
Noted
This amendment has been made with
Board approval.
CPC has obtained the services of private
Lawyers in certain cases where legal
expertises are required on an urgent basis.
ANNUAL REPORT 2007 | CEYLON PETROLEUM CORPORATION