OGDC asked to recover irregular payment of Rs1m
By Muhammad Ali Malik

ISLAMABAD—A Sub-committee of the Public Accounts Committee (PAC) directed Oil and Gas Development Authority (OGDC) on Monday to either recover irregular payment of Rs 1 million done to firm or fix responsibility for payment of the amount.
The PAC sub-committee which met here under convenorship of iaz Fatyana, MNA was examining the Federal Government Accounts/Audit Reports and Special Audit Reports related with Ministry of Petroleum and Natural Resources for the year 1992-93 here at Parliament House. The OGDC had paid the amount to a chartered accountants firm for conducting physical verification of fixed assets and
correctness of their value in the balance sheet in 1984 but the firm failed to complete its work.Later the same task was given to same firm in 1990 under World Bank Lending Energy Sector Loan. While examining an audit para about more than permissibletransmission and distribution losses in 1992-03 by Sui Northern Gas Pipelines Ltd Riaz Fatyana,the convener of the committee saidthat the company should take steps to control such losses.
The managing Director SNGPL Abdul Rashid Lone said that thecompany has formed a special cell to control line losses.He saidthat Oil and Gas Regulatory Authority (ORGA) has fixed 5.4 per cent maximum limit for line losses this year.He said that thecountry is divided in various zones and those zones where morethan average line losses are recorded,special teams of the company have surprise visits of those areas.He further said that newautomatic meters are also good for controlling theft of the gas.
The PAC sub-committee advised the MD SNGPL to take steps forbridging the gap between demand and supply of gas.Riaz Fatyana said that there was need of organizational and human capacitybuilding in the SNGPL.On this the MD said that capacity building process was in progress and during past three years record fundingwas done in the company and presently projects worth Rs 27 billionwere in progress.
The PAC sub-committee directed the ministry to ensure thatDepartmental Accounts Committee meetings are held regularly and old pending cases should be given priority.
During examination of a para about reported pilferage ofcoat and wrap material worth Rs 64.745 million,the committee wasinformed that it was actually difference between estimate andactual cost and not wastage as thought by the Audit.The MD SNGPL said that now the company was switching to plastic pipelines whichwould eliminate use of coat and wrap material.
About irregular payment of bonus to executive staff worth Rs 2.343 million on the then Prime Minister’s directive in 1993,the committee said that in future rules and regulations should befollowed. MD Pakistan Mineral Development Corporation (PMDC) Brig (retd) Khokhar said that his corporation has become a profit- earning body during past few years. While discussing a para about Pakistan State Oil (PSO),thecommittee said that sub-standard lubricants are being sold in the market which not only damage engines of the vehicles but also had environmental affects as well.
It also expressed concern over sale of petrol and diesel at shops in rural areas which could cause major accident any time.