GIDC arrears amounted to ‘Rs81.81b’

Public Accounts Committee panel summons K-Electric over non-payment to SSGC

ISLAMABAD:

A subcommittee of the Parliamentary Public Accounts Committee (PAC) on Thursday summoned K-Electric officials over the issue of unauthorised supply of gas to it and non-payment of arrears to the Sui Southern Gas Company (SSGC).

A meeting of the subcommittee, with its convener Raja Riaz in the chair, reviewed the audit objections regarding the Petroleum Division for 2018-19.

The committee was informed by audit officials about the non-recovery of Rs 81.81 billion under Gas Infrastructure Development Cess (GIDC).

SSGC officials informed the committee that gas worth Rs10 billion was stolen in Balochistan, annually, and they stressed the need for the government and the relevant agencies to resolve the issue of gas theft in the province.

During the meeting, the committee sought details of the non-recovery of the GIDC. The Petroleum Division Secretary Asad Hayauddin informed the committee members that a summary for the recovery rules had been prepared.

Secretary Hayauddin said that Rs10 billion had been recovered, but added that some companies had obtained stay orders from courts. Committee member Noor Alam Khan sought the names the companies, which had obtained the stay orders.

The power division secretary replied that all the relevant documents would be provided to the committee later. The convener of the committee proposed that a two-member committee should be formed for a follow-up on the matter.

The audit officials also informed the committee that the SSGC supplied gas to the K-Electric without any contract, adding that the electricity supplier to the biggest city of the country owed Rs38 billion to the gas utility.

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Hayauddin told the lawmakers that the issue between the two sides needed to be resolved and added that a payment mechanism had yet to be agreed. “The dilemma here is that if gas is not provided to the K-Electric, the people of Karachi do not get electricity,” he said.

The SSGC officials said the deal sought by the K-Electric was not acceptable to them, adding that the gas utility wanted to resolve the problem. The petroleum division secretary asked the committee to summon K-Electric officials. Later, the committee summoned the power utility officials.

During the meeting, SSGC officials raised the issue of gas theft in Balochistan, saying that losses in the provinces were as high as 60%, which amounted to Rs10 billion. They pointed out that the average gas bill in Balochistan was Rs 30,000 per month. Most people could not pay the bills, so they steal gas,

During the meeting, the issue of loss due to non-recovery of arrears from a petroleum company by he Pakistan Petroleum Limited was also discussed. The National Accountability Bureau (NAB) officials told the committee that a reference was filed and Rs1.29 billion had been recovered.

Noor Alam Khan quipped that the credit for the recovery went to PAC. The committee directed the audit authorities to verify the recovery.