ISLAMABAD: A parliamentary panel, on Tuesday, criticised the state-owned Oil and Gas Development Company Limited (OGDCL) for what is said over-procurement of expensive equipments and hiring of consultants.
A sub-committee of the Public Accounts Committee (PAC) meeting was held under convener Syed Naveed Qamar to examine the audit reports of the OGDCL for the year 2016-17, 2017-18 and 2018-19.
While examining an audit para relating to wasteful expenditure of Rs988 million on procurement of amine unit for Sinjhoro, the committee members learnt that a mine unit plant procured for Euro 6.272 million for Sinjhoro field for sweetening of natural gas was lying unutilised since 2014.
Purchase of plant was based on a study conducted by the consultant, M/s ENAR, who later conducted another study, wherein, significant financial benefits were forecasted on installation of a redundant equipment i.e Skid Membrane lying at Qadirabad site.
Thereafter, Skid Membrane was installed on site and installation of amine unit was dropped.
The management stated that the study carried out by consultant, M/s ENAR, recommended utilisation of available Membrane of Qadirpur at Singhoro and amine unit for Soghari.
The convener of the committee remarked that M/s ENAR was “notorious” for over-procurement during his period as the petroleum minister as well and their assessments were “faulty” in various cases.
The managing director OGDCL said that the company was trying to sell the plant to Pakistan Petroleum Limited (PPL) or it would be utilised in other recoveries where oxygen levels would be above six to seven percent. In another audit para relating to loss due to ill-planned procurement of Rs65.8 million for Soghari Field, the convener committee said the audit reports were indicating that the company needed better planning with accurate assessment of data for future procurements. In yet another case, the audit official said funds were blocked due to unnecessary procurement of inventory items of Rs50 million. The managing director OGDCL said that out of all items only two ball valves were unutilised, which would be used in future.
Referring to an audit objection of demurrage charges of Rs27 million, an official of the OGDCL informed the committee that the company had procured equipments worth Rs25 billion annually.
While examining an audit para of irregular purchase of second hand fire lorry of Rs20 million, the convener remarked that the company always concluded inquiries only after the retirement or death of responsible people.
He further said under the Companies Act, the company had the authority to hold inquiry of their employees under services rules but it should be conducted in national interest and the findings should be shared with the ministry.
Copyright Business Recorder, 2021