Litro denies alleged financial irregularities in LP gas purchases

Litro Gas Lanka Limited has strongly denied the allegations and media reports that a financial misappropriation took place during the company’s liquefied petroleum (LP) gas purchases.

Issuing a statement to clear the air about the claims, the newly-appointed Litro chairman Muditha Peiris emphasized that the company has not misled the Cabinet of Ministers or the general public. As a state-owned enterprise (SOE), Litro Gas is committed to ensuring transparency and accountability, it added.

The clarification came after the Committee on Public Enterprises (COPE) recently recommended the Auditor General’s Department to conduct an investigation into the cancellation of the Term tender which had been approved by the Cabinet of Ministers to purchase LP gas from Siam Gas and opting to buy 100,000 MT from Oman Trading for a higher price.

The statement noted that the international tender for 2022/2023 was awarded to Singapore-based Siam Gas for USD 37 million but was subsequently rejected as the required Stand-By Letter of Credit (SBLC) was not furnished by the Treasury or any other local or international financial institution.

Litro further clarified that the contingency tender for 100,000 MT of LP gas was awarded to Oman Trading as Siam Gas did not have the capacity to deliver the required quantity despite being the lowest bidder.

According to the Litro chairman, Siam Gas quoted USD 112 per metric ton although recent reports have misstated the quoted figure as USD 96 to “exaggerate” the loss to Litro.

Thereby, Litro Gas rejected the claims that the company has failed to submit the necessary SBLC for the 2022/2023 tender.