An internal investigation into an alleged large-scale fuel fraud at Sri Lanka’s Norochcholai Lakvijaya coal power plant has found that diesel worth more than Rs160 million issued for the facility was not properly delivered, according to a senior official of Electricity Generation Lanka (Pvt) Ltd.
The alleged fraud came to light during an internal audit of diesel released from the Kolonnawa and Sapugaskanda fuel storage terminals for use at the power plant. Audit findings indicate that the fuel disappeared in five incidents — two in December and three in January.
The diesel is used to provide the initial power needed to restart generating units following breakdowns. According to the audit, tanker trucks carrying the fuel were recorded in documents as having arrived at the plant, although the fuel was not properly received at the facility.
Investigators suspect that the alleged operation may have been carried out over a prolonged period by an organised group, potentially with the knowledge of some senior officials. The claim remains part of the ongoing investigation. The storage officer facing allegations has already been removed from the position with immediate effect and replaced by another officer.
As investigators proceeded, all relevant files and documents held at the Norochcholai plant were transferred to the company’s head office in Colombo. Armed members of the Ceylon Electricity Board security division were also deployed to protect audit officers conducting the inquiry.
The audit has uncovered concerns beyond the missing diesel. During further inspections, investigators reportedly found stocks of chemicals worth hundreds of thousands of rupees that had been left unused until they expired. Another stock of similar chemicals was reportedly destroyed.
The company’s audit officers formally reported the alleged diesel fraud to the Special Crimes Investigation Unit of the Puttalam Police on 26 September, bringing the matter to the attention of law-enforcement authorities.
The diesel inquiry is also expected to form part of a broader examination of the power plant’s operations. According to the senior official, a further investigation into other suspected irregularities dating from the establishment of the plant is scheduled to begin on 1 October.
The new investigation will therefore extend beyond the fuel discrepancies identified in the internal audit and examine a wider range of alleged irregularities at the power plant since it began operations.
