ISLAMABAD: The circular debt of energy sector in the country has surpassed Rs 500 billion.
It was revealed in the meeting of sub committee of PAC, which was held at Parliament House on Wednesday.
The meeting was told that the government has paid Rs 430 billion and claimed that there is no circular debt now. In-competency of the government increased the debts and committee has raised question mark on the performance of the government.
Convener of the committee Shafqat Mahmood said that the payments of Rs 140 billion were misappropriated clearly, whereas Rs 195 billion are due to be paid to Pakistan State Oil(PSO).
The meeting was told that irregularities of more than Rs two billion were revealed in the Ministry of Petroleum .
Funds for gas supply were allocated but the same were lapsed on 30th June.
Audit officials revealed that some 81 percent of the total budget was granted to Petroleum Ministry .
Opposition MNA have sought details pertaining to gas projects.
“In the policy wing of Petroleum Division, consultants were employed in violation of the law. Audit officials told the committee that one consultant is being given Rs 6.6 million salary in addition to about Rs two million extra sans following the SOP. Upon this Secretary Petroleum said that order has been issued for a probe. Dues of Gencos(generation companies ) is Rs 245 billion whereas PSO has to pay Rs 190 billion rupees. Millions of rupees have been misappropriated in installation of LED lights.
Secretary Petroleum acknowledged that some companies are supplying substandard petrol.
MD PSO told the meeting that about 20 dealers are facing cases and their licences may be cancelled.
PSO has appointed a retired officer of ISI in the Security Department in violation of law and additional sum of Rs 32 million was paid to him.