The audit report 2011-2012 has pointed out misappropriation of millions of rupees in Pakistan State Oil (PSO) in addition to some big fraud cases that would be no less than a challenge to the new petroleum minister, NAB, and FIA to deal with.
These fraud cases have already turned the profitable organisation into a sinking ship. Reinstatement of Nadeem Memon, who was terminated on allegations of corruption of millions of rupees, amounts giving him another opportunity for corruption. No case has been lodged against Memon whereas this decision could result into huge fines against PSO.
Mangal Brothers, the suppliers of oil to NATO tankers, caused the PSO a loss of millions of rupees by providing fake bank guarantees. A tanker vanished in thin air after getting filled with diesel worth tens of thousands of rupees from a fuel station in Defence area of Karachi. Despite an agreement for recovery of amount with the contractor, the organisation has lodged a case against the accountant of the fuel stations and fulfilled its responsibility.
A fraud of tens of thousands of rupees was also reported at a PSO fuel station in Islamabad but attempts are being made to save the culprits instead of handing them over to the FIA for interrogation.
A notice was issued to Nadeem Memon telling him that the leave he had applied for had not been approved and he was advised to appear in office immediately. The same was published in a local newspaper but Memon disregarded the notice and was reinstated in office as per presidential ordinance; although he was not entitled to its benefits since he was terminated on charges of misappropriation of funds.
Mangal Brothers Transport (Ltd) had given the organisation a bank guarantee of Rs12.6 billion but it proved to be bogus later. A befitting action is yet to be taken against the culprits. A tanker came to PSO fuel station, got diesel worth Rs528,000 and vanished in thin air. The cashier said that the accountant let the tanker go and the PSO moved against the accountant instead of taking an action against the contractor of the fuel station as per law.
PSO Executive Director Muhammad Javed was called for the official version but he put this scribe on to Mariam Shah, who first got to know the questions through her subordinate and then sent their replies via e-mail. The replies said that FIR had been lodged against those responsible in the tanker scam while FIA would take action against the fraud of Mangal Brothers. It said Memon was restored in the light of a high court decision and after leave without pay, the organisation had again sought his services back.