Petroleum ministry refuses to account for billions in tax money

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The Petroleum Ministry has refused to account for billions of rupees it received for fuel-related expenditures. It refused to hand over the record to the public accounts watchdog, the Auditor General of Pakistan (AGP), who noticed six ‘controversial’ claims worth Rs 10.8 billion paid in subsidy to oil marketing companies in 2010-11. According to a report by the AGP, the amount was paid by the ministry to companies in lieu of price differential claims. However, the auditors reported that they were not able to ascertain the authenticity of the claims given to certain oil marketing companies, the report revealed. “The audit recommends that responsibility be fixed [against ministry of petroleum] for hindering the functions of the Auditor General of Pakistan, besides provision of the relevant record,” stated a 2011-12 report likely to be tabled to the parliament in July this year. The auditors were seeking records of payment made to various oil firms. Commenting on the issue, Deputy Auditor General Imran Iqbal told local media that 90% of audit paras were taken up again with ministry officials recently but no satisfactory results were produced. Section 14(3) of Auditor General’s Ordinance, 2001 states that “any person or authority hindering the auditory functions of the auditor general regarding inspection of accounts shall be subject to disciplinary action under relevant efficiency and disciplinary rules, applicable to such person.” Petroleum Secretary Abid Saeed dispelled AGP’s claims and said they were fully co-operating with the auditors.