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Substandard Diesel Issue in Sri Lanka - 2012

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Isuru Premathunge
Isuru Premathunge

This document summarizes a substandard diesel issue that occurred in Sri Lanka in 2012. It discusses the root causes, such as outdated testing standards and dissatisfying supplier responses. Consequences included damage to thousands of government and consumer vehicles. Strategies to address the issue included forming an investigative committee, paying compensation, and suspending the supplier. Recommendations to prevent future unethical behavior focused on establishing new policies, examining suppliers more closely, and regulating laws and organizations more strictly.

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Substandard Diesel Issue In Sri Lanka - 2012 By V E R S A T I L E
What Are Ethics? Ethics are the code of moral principles and values that governs the behaviors of person or a group with respect to what is right or wrong.
Why Do The Organizations Need Ethics? ? Attract customers to the firm's products ? Attract investors and keep the company's share price high ? To control high competition among businesses ? To protect consumer's rights ? Improve consumer confidence
Ceylon Petroleum Corporation Introduction
Vision To be the premier customer driven, environmental friendly, enterprise in the petroleum and related industries in the region while contributing towards the prosperity of our nation.
Mission To achieve excellence in refining, sales and marketing of high quality products and meet the expectations of the stakeholders through a dedicated team of professionals and a loyal & efficient dealer network and by providing total solutions and services exceeding customer expectations, while utilizing a high technology base for growth and development of the enterprise with total employee participation and innovation, by maintaining high ethical norms in all its activities and with highest concern for health, safety and environment.
Substandard Diesel Issue In Sri Lanka
? First ¡°Fiasco¡± ¨C High Sulphur Fuel Oil by ¡°Elibank Germany, to Independent Power Producers in 2009 ? Second ¡°Fiasco¡± ¨C¡°Dirty Petrol¡± contaminated or substandard gasoline (petrol) by CPC ? Third ¡°Fiasco¡± ¨C Jet A1 Fuel Oil (Aviation Fuel Oil) supplied by British Petroleum Singapore Pvt. Ltd., in May 2012 ? Fourth ¡°Fiasco¡± ¨C distribution of ¡°Dirty Diesel¡± (Gas Oil) and/or off-specification/contaminated Diesel (Gas Oil) by CPC throughout the country ¨C 2012. supplied by Singapore based company ¡°Vitol¡±
Root Causes For The Importation Of Substandard Diesel ? Outdated lab testing standards and lack of lab facilities ? Delayed arrival of products ? Dissatisfying Response for Bid Invitations
Outcomes And Consequences
Government ? Mostly damaged A large number of state vehicles ? 18 of the container cranes at the ports authority ? SLTB has suffered losses of around Rs.6 million ? 26 vehicles of the Department of Post ? Several train engines have encountered
Consumer ? 20000 tons of diesel entered the market ? 150 complaints about cases of stalling of vehicles ? CPC accepted that the cause of the damage
Strategies To Fix Adverse Impact ? Appointed a three member committee ? Pay compensation ? Testing samples of low quality petrol ? Suspended the tender of a Singaporean company that supplied substandard fuel to the CPC.
Recommendations To Prevent Such Unethical Behavior ? Introduce new Policies and Practices to regulate ethical behavior ? Examine the ethical climate and put safeguards ? Do a depth analysis about the suppliers ? Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization. ? Separate auditing from consulting functions ? Establish an Ethics Committee ? Regulate laws and regulations accurately towards the wrong doers.
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Substandard Diesel Issue in Sri Lanka - 2012

  • 1. Substandard Diesel Issue In Sri Lanka - 2012 By V E R S A T I L E
  • 2. What Are Ethics? Ethics are the code of moral principles and values that governs the behaviors of person or a group with respect to what is right or wrong.
  • 3. Why Do The Organizations Need Ethics? ? Attract customers to the firm's products ? Attract investors and keep the company's share price high ? To control high competition among businesses ? To protect consumer's rights ? Improve consumer confidence
  • 5. Vision To be the premier customer driven, environmental friendly, enterprise in the petroleum and related industries in the region while contributing towards the prosperity of our nation.
  • 6. Mission To achieve excellence in refining, sales and marketing of high quality products and meet the expectations of the stakeholders through a dedicated team of professionals and a loyal & efficient dealer network and by providing total solutions and services exceeding customer expectations, while utilizing a high technology base for growth and development of the enterprise with total employee participation and innovation, by maintaining high ethical norms in all its activities and with highest concern for health, safety and environment.
  • 8. ? First ¡°Fiasco¡± ¨C High Sulphur Fuel Oil by ¡°Elibank Germany, to Independent Power Producers in 2009 ? Second ¡°Fiasco¡± ¨C¡°Dirty Petrol¡± contaminated or substandard gasoline (petrol) by CPC ? Third ¡°Fiasco¡± ¨C Jet A1 Fuel Oil (Aviation Fuel Oil) supplied by British Petroleum Singapore Pvt. Ltd., in May 2012 ? Fourth ¡°Fiasco¡± ¨C distribution of ¡°Dirty Diesel¡± (Gas Oil) and/or off-specification/contaminated Diesel (Gas Oil) by CPC throughout the country ¨C 2012. supplied by Singapore based company ¡°Vitol¡±
  • 9. Root Causes For The Importation Of Substandard Diesel ? Outdated lab testing standards and lack of lab facilities ? Delayed arrival of products ? Dissatisfying Response for Bid Invitations
  • 11. Government ? Mostly damaged A large number of state vehicles ? 18 of the container cranes at the ports authority ? SLTB has suffered losses of around Rs.6 million ? 26 vehicles of the Department of Post ? Several train engines have encountered
  • 12. Consumer ? 20000 tons of diesel entered the market ? 150 complaints about cases of stalling of vehicles ? CPC accepted that the cause of the damage
  • 13. Strategies To Fix Adverse Impact ? Appointed a three member committee ? Pay compensation ? Testing samples of low quality petrol ? Suspended the tender of a Singaporean company that supplied substandard fuel to the CPC.
  • 14. Recommendations To Prevent Such Unethical Behavior ? Introduce new Policies and Practices to regulate ethical behavior ? Examine the ethical climate and put safeguards ? Do a depth analysis about the suppliers ? Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization. ? Separate auditing from consulting functions ? Establish an Ethics Committee ? Regulate laws and regulations accurately towards the wrong doers.