PAC takes petroleum ministry to task

The Public Accounts Committee (PAC) on Tuesday took up audit objections worth over Rs20 billion relating to the Ministry of Petroleum, unearthing large-scale non-recovery of petroleum levies, questionable financial arrangements and weak enforcement mechanisms, causing massive losses to the public exchequer.

During the apex parliamentary committee's meeting, held under the chairmanship of Syed Naveed Qamar, lawmakers reviewed audit objections involving Rs14.63 billion in unpaid petroleum levy and penalties by Hascol and Synergy.

Raising concerns over the age of the case, the panel chairman asked how much recovery had been made so far.

Audit officials told the committee that only Rs190 million had been recovered to date.

The secretary petroleum told the committee that Hascol had paid the amount, but it was deposited into the wrong account. However, the auditor general informed the committee that the account had since been closed and the record could no longer be corrected.