Allegations have emerged regarding the new Chairman and Managing Director of the Ceylon Petroleum Corporation (CPC), with claims that their salaries and allowances have been increased by more than double what they are entitled to, while they have also secured unlimited medical facilities for their families. These claims have raised concern, especially as the medical allowances for CPC employees have been slashed. According to a Board of Directors’ document issued following a meeting held on October 10, 2024, the Chairman of CPC, S. Rajakaruna, is entitled to a salary of Rs. 625,000, along with all additional allowances. This salary is reportedly more than double the amount previously paid to managers at CPC, and it has been highlighted that, for the first time in the corporation’s history, the Chairman’s salary now exceeds that of the Managing Director.
Ananda Palitha, the convener of the Samagi Sandhana Joint Trade Union Conference, pointed out that during the presidency of Gotabaya Rajapaksa, all CPC chairmen had a salary cap of Rs. 100,000. The current Chairman and Managing Director, however, have claimed that they would serve without pay but have now secured the highest salaries in CPC’s history. The revelation has sparked a strong reaction from employees, who argue that these excessive salaries are unjustified, especially in light of the cuts to medical benefits for regular employees.
In addition to the significant salary increase, it has also been revealed that Rajakaruna has secured approval from the board for unlimited medical benefits for his wife and children, a privilege not extended to the corporation’s employees. This decision has caused further discontent among staff, who view it as a preferential treatment for the Chairman and his family while they face reduced medical allowances.
Concerns have also been raised over the background of the new Managing Director, who was allegedly dismissed from a gas company in Bangladesh due to charges of theft. Despite this, the individual has been appointed as Managing Director of CPC, with a salary of Rs. 500,000 and an additional allowance of Rs. 251,000. Furthermore, these individuals are reportedly paid Rs. 20,000 each for attending Board of Directors meetings. This has sparked further criticism regarding the choice of appointments and the compensation given to individuals with questionable backgrounds.
Another point of contention is the recruitment of a retired officer to the Board of Directors. This officer, who had been under investigation for three corruption charges, was hired on a contract basis as an operations manager with a salary of Rs. 425,000, a vehicle, and a monthly fuel allowance of 200 liters. Despite the ongoing investigations into the officer’s past actions, he was recalled to work. This has raised serious concerns about the corporate governance practices within CPC and the government’s role in approving such appointments.
In response to these allegations, Ananda Palitha and his union representatives delivered documents detailing these irregularities to the President’s Chief of Staff at the Presidential Secretariat. The trade union team has called for an investigation into these claims to determine whether the actions of the Chairman and other senior officials are in violation of any laws or ethical standards.
Efforts to reach the Chairman of the Ceylon Petroleum Corporation, S. Rajakaruna, for comment went unanswered. The Chairman’s mobile phone was called twice on the afternoon of December 17, 2024, but there was no response before the newspaper went to press. The allegations surrounding the salaries, allowances, and appointments within the Ceylon Petroleum Corporation have led to a broader debate over fairness and transparency in the country’s public corporations. Unions and the public are calling for further scrutiny and accountability, as concerns about financial mismanagement and the misuse of power within state-run enterprises continue to grow.
