Description
The KPMG forensic audit of the Ceylon Petroleum Storage Terminals (CPSTL) in Sri Lanka has uncovered significant irregularities, including the alteration or deletion of over 1.3 million entries in the SAP data system since 2010. Most of this tampering occurred during the 2022 fuel crisis, raising concerns about the integrity of fuel distribution. The audit revealed massive stock losses totaling Rs 28 billion in 2022, which were reduced to Rs 4 billion in 2023 after the audit complaint was lodged. Additionally, outdated procedures and inadequate data management were identified as contributing factors to these discrepancies
What is the corruption
Manipulation and illicit activities surrounding the fuel distribution system (manipulation facilitated illegal activities, such as the unauthorized sale of fuel, amidst a national shortage that led to severe public hardship.)
Monetary value involved
The audit revealed massive stock losses totaling Rs 28 billion in 2022, which were reduced to Rs 4 billion in 2023 after the audit complaint was lodged.
What has been done
The CID instructed a forensic audit to investigate the alleged data manipulation and stock losses at CPSTL. This audit uncovered substantial evidence of data deletion, including an incident where data was erased during the audit process itself.
An individual from a private audit firm, implicated in the unauthorized deletion of data, has been removed from the ongoing forensic analysis. CPSTL acknowledged “reasonable suspicion” of data deletion and confirmed that the deletion occurred through a remote login system, emphasizing that this individual was not a CPSTL employee
What can be done
Implementation of a robust data management system to prevent data manipulation that includes real time monitoring capabilities.
Regular audits and compliance check where a established routine of schedule for audits especially for critical systems like SAP.
Links
https://economynext.com/kpmg-audit-of-ceylon-petroleum-storage-terminals-finds-data-deleted-stock-losses-151071/https://english.newsfirst.lk/2024/02/15/millions-of-fuel-sales-records-deleted-in-sri-lankahttps://www.dailynews.lk/2024/02/19/featured/404804/deleting-data-the-latest-game/https://ceylontoday.lk/2024/02/16/probe-reveals-major-fuel-scam-at-cpstl/
