Increase font size Decrease font size Reset font size

Rs102m paid to Rangers for guarding pipelines, says top auditor

By Malik Asad 2017-10-26
ISLAMABAD: The office of the auditor general pointed out Rs102 million worth of `irregular` payments made by the ministry of petroleum and natural resources to Pakistan Rangers for security of pipelines of gas distributors in remote areas.

During the scrutiny of the accounts of petroleum ministry, the director general audit identified that the ministry had paid Rs102m to Punjab and Sindh Rangers `for the security duty for protection of sites of Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited respectively.

The audit, however, objected that the payments were made on the basis of an agreement between Pakistan Rangers and the ministry of petroleum but neither a copy of the contract nor concurrence to it by the ministry of finance was provided.

It further raised objection to the payment to contractors Mehmood & Brothers and Barki Traders since there was no document for the award of contract for the procurement of services from these private companies.

According to the audit report, `evidence regarding deduction of income tax on hiring of vehicles and other charges was not available in the record`.

Subsequently, the audit department was of the view that in the absence of record the authenticity of the expenditure could not be ascertained.

It recommended `immediate production of relevant recordbesides fixing of responsibility for irregular payment`.

Public Accounts Committee chairman Syed Khursheed Shah wanted to settle the audit objection at the very outset and soon after the auditor presented this audit para, he said `subject to verification`.

However, a number of PAC members, including Chaudhry Tanvir Khan, Mehmood Khan Achakzai, Ashig Gopang and even Sherry Rehman, spoke otherwise.

Mr Gopang asked as to how the ministry had paid private contractors for security-related servicesbesides fixing of responsibility for irregular payment`.

Public Accounts Committee chairman Syed Khursheed Shah wanted to settle the audit objection at the very outset and soon after the auditor presented this audit para, he said `subject to verification`.

However, a number of PAC members, including Chaudhry Tanvir Khan, Mehmood Khan Achakzai, Ashig Gopang and even Sherry Rehman, spoke otherwise.

Mr Gopang asked as to how the ministry had paid private contractors for security-related servicesbesides fixing of responsibility for irregular payment`.

Public Accounts Committee chairman Syed Khursheed Shah wanted to settle the audit objection at the very outset and soon after the auditor presented this audit para, he said `subject to verification`.

However, a number of PAC members, including Chaudhry Tanvir Khan, Mehmood Khan Achakzai, Ashig Gopang and even Sherry Rehman, spoke otherwise.

Mr Gopang asked as to how the ministry had paid private contractors for security-related serviceswhereas it was the job of Rangers.

Sherry Rehman asked whether a written agreement existed between the ministry and Rangers.

An additional secretary of the petroleum ministry said that the agreement was there and it had been shared with the auditors.

The auditors on the other hand denied receipt of any copy of such an agreement and alleged that the state of affairs in the petroleum ministry was so pathetic that it was very dif ficult to get the record from the possession of of ficials concerned.The deputy financial adviser of the ministry informed the committee that it was in 2003 when the then prime minister issued direction to the petroleum ministry for hiring Rangers for the protection of the pipeline network in remote areas of Punjab and Sindh.

He said the cost of Rangers` deployment was being shared by the federal government, distribution companies and the province concerned till 2015. Then Punjab refused to contribute for Rangers and the matter was then referred to the Council of Common Interests.The ministry, however, f ailed to satisfy the lawmakers about the payment to sub-contractors.

Petroleum secretary Jalal Sikandar Sultan then requested the committee to allow the ministry to settle this issue at the meeting of the departmental accounts committee (DAC). He assured the lawmakers that the required documents would be shared with the audit officials in the DAC`s meeting.

Subsequently, PAC chairman Shah asked the audit officials to verify the details in the DAC meeting.