Top official to investigate audit para

The secretary cabinet will investigate an audit para pertaining to import of pyrolysis gasoline by Hascol Petroleum Limited (HPL) and a penalty of Rs 2 million imposed by Oil and Gas Regulatory Authority (OGRA), it was learnt on Thursday. The audit para was referred to the secretary cabinet by Public Accounts Committee headed by Syed Khursheed Shah on Wednesday last on Hascol issue.
However, the documents available with Business Recorder revealed that Hascol did not follow the procedure for testing of imported products as defined by the Ministry of Energy. According to the procedure, the company was supposed to inform Hydrocarbon Development Institute of Pakistan (HDIP) about arrival of their cargo so that a sample can be collected by the surveyor in the presence of HDIP for subsequent testing by HDIP. Instead of collecting sample in presence of HDIP, the company collected it through its surveyor itself.
Since the sample collection was not witnessed by HDIP, it refused to test the sample. The audit department did not thoroughly check the details of the case. Confusion arose due to errors in nomenclature on the bill of lading. The cargo was mentioned as pyrolysis gasoline on some sheets; and it was mentioned as motor gasoline on other sheets of the bill of lading.
The Custom Authorities did not release the product till such time it was proved in Sindh High Court that the product is motor gasoline according to its specified properties as notified by the government of Pakistan. The audit department claimed that HDIP had tested the cargo whereas as per Ogra's stance, HDIP had not tested the cargo.
The PAC ordered the secretary Cabinet Division to convene a meeting of all the relevant stakeholders to analyze the facts and submit a report to the committee for settling the audit para. On Wednesday, the PAC took notice of alleged substandard benzene import by the Hascol Petroleum Limited which was not only causing cancer but had also incurred Rs 250 million losses to the national kitty. The PAC panel also asked OGRA how it allowed Hascol to import such chemicals in purported violation of set rules and regulations. Briefing the panel, the Ogra chairperson tried to justify the import of benzene by the oil marketing company; to which the panel snubbed her, saying that the regulatory authorities were established to safeguard public interests, and not of oil companies.