Public Accounts Monitoring and Implementation Committee on Friday showed its serious concerns over the adoption of calibration system by Pakistan State Oil (PSO) to measure petroleum products transferred from one depot to another and set up a committee to give recommendations to make the system transparent. Rana Afzaal Hussain convened the committee meeting to review the audit reports of PSO for the years 1996-97, 1999-2000 and 2000-01.
The committee also examined the performance audit of Ministry of Petroleum and Natural Resources for the 1999-2000. Examining the various audit objections raised during the audit of PSO accounts, Rana Afzaal commented that there is no monitoring mechanism to stop oil theft during transportation from one depot to another. Despite management of PSO''s strict measures, oil theft continues during calibration and later available in black market on lower prices. He said before the case to be handed over to FIA for investigation, it would be better to set up a committee of the ministry to recommend as how to make entire system transparent. Secretary Petroleum also admitted that the loopholes in the whole system of transportation and calibration should be plugged.
Member Committee, Mian Abdul Manan further asked how they calculated losses during transportation of fuel from one point to another. The PSO official said they followed international standard based on temperature at the time of transportation of fuel. However, he failed to respond Mian Manan''s question where they adjust these losses.
The committee also reviewed performance report on transportation of petroleum products to Northern Areas, Gilgit for year 1999-2000. The performance audit was conducted after Chaudhry Nisar Ali Khan, a member of PAC in 1996 apprehended that loaded oil tankers of the oil companies were decanted at Rawalpindi by the carriage contractors and petroleum products were not actually transported to Northern Ares while carriage is obtained from them. He further opined that about Rs 50 million was paid annually on this account.
At that time, PAC directed to conduct a performance audit of transportation of petroleum products to Northern Areas for the period 1990-95 and submit a report. The report presented is based on the data for the period 1990-95 of PSO depot, Juglot. However, the report pertaining to PSO depot, Faqirabad, is based on the data for the period 1992-95 only due to non-availability of record for the years 1990-91 and 1991-92.
The performance audit report on transportation of POL products to Northern Areas was discussed in a DAC meeting held in 2002. Audit stressed that the PAR was an analysis of a risk areas identified by PAC with a specific reference to transportation of POL products to Northern Areas. Despite being constrained by provision of incomplete record the audit findings validated the concerns raised in the PAC meeting in which direction of audit review was issued. In a DAC meeting it was observed that the basic issue of payment of freight charges to carriage contractors without the assurance that products actually reach the sale point in Northern Areas continued to be a risk area.
In one audit observation, as per the record of PSO depot, Faqirabad, the petroleum products dispatched to six filling stations located in Diamer District and freight paid during the period 1992-95. The freight of Rs 46 million was paid in excess. Petroleum products dispatched as per record of freight pool, PSO House, Karachi and PSO depot, Faqirabad to Hakeem filling station, Chillas and Muhammad Gul Kaka, filling station, Shtial during the period 1992-95 were compared. The comparison shows that the freight of petroleum products for 426,000 litres and 259,000 litres was paid in excess to Hakeem filling station, Chillas and Muhammad Gul Kaka Filling Station, Shatial respectively.
The audit observed that bills and claims for the year 1999 showed that this system was in vogue at the time of audit. A valid record of the periods under discussion was also missing. In the last DAC meeting held in July 2014, the ministry stated that the record available was provided to audit while the one which was not available could not be provided. The Audit was of the opinion that record pertained to the audit report which was carried out on the orders of the then Petroleum Minister Chaudhry Nisar Ali Khan. The record could, therefore neither be destroyed nor misplaced. It should, therefore, be made available.
Director General Oil, Ministry of Petroleum Muhammad Azam said that Oil and Gas Regulatory Authority (OGRA) has now developed a mechanism to determine the freight charges across the country. Now, they also put trackers on the transport carrying fuel to Juglot.
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