Oil, gas utilities being run by acting heads, PAC told

ISLAMABAD: A subcommittee of the Public Accounts Committee (PAC) was informed on Wednesday that more than Rs8,103 million in dues in the form of Gas Development Surcharge (GDS) could not be submitted during 2015-16 and the delay has caused an increase in interest rate.

Officials of the ministry said that dues of Rs164 billion are outstanding in terms of circular debt, which is a big issue. They said that the law division has been approached in this matter. The committee postponed examination of the matter.

The meeting chaired by convener Syed Naveed Qamar reviewed the objections raised on the audit of Ministry of Energy (Petroleum Division) for the years 2015-16 and 2016-17. Members of the committee, officials from Ministry of Petroleum, energy division and other representatives were present on the occasion.

The convener said that the Sui Northern Gas Pipelines (SNGPL) and the Sui Southern Gas Company (SSGC) and the ministry are being run with acting heads. On this, the committee was informed that the charges of the Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO) are also with the acting officers.
The additional secretary for Ministry of Petroleum said that he was handed over the charge of secretary in August 2018. The committee expressed reservations and questioned as to how the performance of the institutions will improve.

It was highlighted that Rs174 billion were spent on various schemes of gas and Rs37 billion were remaining.

On being inquired by the PAC, it was informed that gas schemes of various categories facing delay will have to start working after approval from the federal cabinet. The PAC directed for this matter to be decided within three months.

During the objection raised at the audit related to the recovery of gas infrastructure development surcharge from gas customers, it was informed that the SNGPL Lahore and PPL Karachi have received more than Rs1,541 million from various customers but some cases pertaining to the GIDC were under hearing in courts.

Summoning the details of these cases, the PAC directed that the officials concerned of both the gas companies must also be present.