According to Annual Audit Report 2012-13, the Auditor General of Pakistan (AGP) the Director General (DG) Gas failed to recover GDS worth Rs 7,958.38 million from M/s Mari Gas Company Limited for the period December, 2011 to June, 2012 and Rs 8,013.69 million from Pakistan Petroleum Limited (PPL) for the period July, 2011 to June, 2012 for gas sold to Wapda, FPC and Gencos. This resulted into non-realisation of GDS of Rs 15,972.07 million due to lack of monitoring.
The irregularity was pointed out in the SNGPL in August and September, 2012. The department replied that the issue of non/delayed payment of GDS will be settled with resolution/settlement of circular debt. DAC in its meeting held on December 31, 2012 directed the DG Gas to follow up the recovery of dues vigorously. It also directed the Petroleum Ministry to take up the matter with the authorities for early resolution of circular debt which was being used as an excuse for delayed payment of GDS. Further progress was not reported till finalisation of this report. The AGP has also shown dissatisfaction over the failure of the management of Sui Northern Gas Pipelines Limited and Sui Southern Gas Company for timely production of record relating to revenue receipts for the year 2011-12.
The AGP requested the management of SNGPL and SSGCL to produce the record before the visiting audit teams in respect of GDS and GIDC. In response, SNGPL requested to conduct the audit at the end of October 2012 on the plea that the Oil and Gas Regulatory Authority (Ogra) has not determined the final revenue requirement for working of GDS. It was further requested that in case of non-finalisation of the decision, the papers submitted to Ogra along with supporting record be produced before the Audit. Both the companies under the jurisdiction of Director General (DG) Gas failed to produce the record. Even the record of GIDS was not produced which was not linked with the decision of Ogra. Further, due to non-finalisation of accounts of both gas utility companies, the gas development surcharge was also not paid by them. Besides, M/s Parco under the jurisdiction of DG Oil also failed to produce the record. Likewise, DG Oil and Gas failed to produce head-wise and transaction-wise soft data requisitioned by the Audit for sampling.
The irregularity was pointed out in November 2012. The SNGPL department replied that the Audit was requested to defer the assignment till the finalisation of revenue requirement by Ogra. The DAC in its meeting held on December 31, 2012 directed the department to immediately produce record before the Audit as well as early decision of final revenue requirement. Further progress was not reported till finalisation of this report.
The Audit requires that production of record of companies be ensured for audit activity in future and a system be developed for timely decision of final revenue requirement.
The DG Gas failed to recover interest on delayed payment of gas development surcharge of Rs 344.58 million from M/s Mari Gas Company and Rs 991.59 million from PPL aggregating Rs 1,336.17 million.
The irregularity was pointed out in the department in August and September 2012. The department replied that the issue of payment of interest on non/delayed payment of GDS will be settled with resolution/settlement of circular debt. The DAC in its meeting held on December 31, 2012 directed the DG Gas to follow up the recovery of dues vigorously. It also directed MPNR to take up the matter with higher authorities for early resolution of circular debt which was being used as an excuse for delayed payment of GDS. Further progress was not reported tilt finalisation of this report.
The DG Gas failed to recover gas infrastructure development cess from PPL with effect from December 15, 2011 to June 2012, causing Rs 423 million revenue loss. The irregularity was pointed out in the department in August 2012. However, further progress was not reported till finalisation of the report.
The DG Oil failed to recover petroleum levy of Rs.6.750.50 billion from the following oil refineries on sale of petroleum products to oil marketing companies during the year 2011-12. M/s Byco Refinery Ltd, Karachi's payable as on 17.11.2011; Rs.4437.42 million (from 18.11.2011 to 30.6.2012 also needs to be recovered); M/s Pak Arab Refinery Ltd, Karachi, Rs.2311.44 million and M/s National Refinery Ltd, Karachi, Rs.1.64 million
The irregularity was pointed out in the department in August 2012. The department replied that an amount of Rs.2,311.44 million has been recovered from M/s Pak Arab Refinery as verified by the Audit and also recover an amount of Rs.75 million from M/s Byco Ltd Karachi in November, 2012 which was yet to be verified by the Audit. The DAC in its meeting held on December 31, 2012 directed the DG Oil to vigorously pursue the recovery. Further progress was not reported till finalisation of this report.