SSGC pass on line losses to consumers
ISLAMABAD: The revelation made before the Public Accounts Committee (PAC) that the Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) were transferring their line losses to gas consumers that reflects in their monthly bills and this way they hide their looses and show profit in their annual statements.
It was told to the PAC that Ogra has put their UGG target below 5 percent but they enhanced it to 7 percent and the different of 2 percent transfers to the gas consumers, who were not involved in company gas losses.
The PAC held its meeting Tuesday with its chairman Syed Khursheed Shah in the chair to review audit paras related to Ministry of Petroleum and Natural Resources for UGGs On Sale financial year 2010 11.
The Audit Department told the PAC that the Ogra gave favour to gas companies by enhancing the UFG target from 5 percent to 7 percent in 2010 for one year. Shah questioned SNGPL MD Arif Hameed that why the company was hiding its losses and recovering them from consumers through gas bills. "The SNGPL failed to check the gas theft but instead of controlling it, the company passed on the burden to the consumers in the shape of bills," he added.
The PAC directed the SNGPL to present details of line losses and benchmarks set by Ogra with regards to UFGs. SNGPL MD told the committee at the moment there is no law in the country to stop gas theft as the ordinance that was promulgated against the gas theft has UGG Bailey Button Triplet Boots Chocolate expired.
The audit officials told the PAC that SNGPL suffered a loss of US$97,500 due to non transparent procurement of stores. The audit officials told the committee that SGNPL management issued a tender enquiry for 100 tons of Steel Grits on February 9, 2008 and the specification of the material was Steel/Aluminum/Silicon clearing grit while an amendment was made on February 21, 2008 in which the specification was changed as Steel Grit G 25.
The Audit was of the view that SNGPL management was extended undue favour by declaring the contractor technically responsive despite the fact that specification of material supplied by M/s MK International was of the Aluminum Grit instead of Steel Grit and second the purchase order could have been amended when the original manufacturer declared on march 5, 2009 that M/s MK International were not their agent and they were ready to fulfill the obligation directly on the same terms and conditions.
The audit told the UGGs On Sale committee that the matter was reported to the management on April 1, 2010 and the Ministry of Petroleum and Natural Resources on January 6, 2011 and the management in its reply dated February 7, 2011 intimated that due to receipt of the defective material without third party inspection, the local bank was advised not to release payment and the bank withheld the payment for sometime but on the pressure of the foreign UGG Classic Tall Boots 5815 Black bank, the local bank released the payment so SGNPL blacklisted the supplier and lodged a civil suit against the bank as well as supplier.
The PAC directed the Secretary Petroleum to hold inquiry at the ministry level to fix responsibility on the officers at fault and report to the committee within one month.
Examining another audit para, the audit officials told the PAC that the SNGPL suffered a loss of Rs43.67 million die to non recovery of gas pilferage charges from M/s Punhal Fabrics.
The audit officials told the committee that SNGPL, area office, Lahore disconnected gas connections of M/s Punhal Fabrics, Lahore from regulator on July 24, 2008 due to non payment of dues of Rs8.609 million and during night raid on August 7, 2009, the consumer was found enjoying gas facility through self reconnection so the consumer was disconnected from line modular tee to avoid pilferage and an FIR was lodged.
The theft of gas worked out for 56,753,43 MMBTU worth Rs35.064 million from August 24, 2008 to August 2009 and this resulted in non recovery of Rs43.673 million as in October 2009.
The SNGPL told the committee that the consumer approached the court of law against booking violation charges and at present civil suits are pending in the court.