ISLAMABAD: A sub-committee of the Public Accounts Committee (PAC) examined on Wednesday 10 audit paras from the audit account of the Petroleum Division for year 2013-2015 involving Rs100 billion.

The committee was informed that Rs173 billion worth of amount was not recovered due to court cases.

Rs17 billion worth of audit paras of the period under review is under discussion at departmental accounts committee-level.

Only Rs43 billion out of Rs334 billion identified by the auditor general was recovered.

In one case, the committee was informed that trade debt increased by 60 percent from Rs55 billion in 2012-2013 to Rs100 billion in 2013-2014.

Trade debt included overdue amount of Rs53 billion on accounts of inter-corporate circular debts, receivables from oil refineries and gas companies.

The management was of the view that Rs81 billion had been recovered out of Rs100 billion leaving a balance of Rs18 million.

Out of which Rs17 billion was paid by M/s Sui Southern Gas Company (SSGC) due to circular debt and non-finalisation of gas sale agreement between the Oil and Gas Development Company Limited and the SSGC.

An amount of Rs317 billion was held by the ARL and the NRL due to price or measurement disputes for which both the parties had applied for time condonation for issuance of debit notes.

Upon approval from the FBR, both parties would release the payments.

An amount of Rs748 million pertaining to Uch Power Ltd was subjudice on account of sales tax on capacity charges.

Copyright Business Recorder, 2020