ISLAMABAD: Parliament’s anti-corruption watchdog Public Accounts Committee (PAC) asked for a complete record of the security payments, of more than Rs102 million, made to the Sindh and Punjab Rangers for the security of Sui northern and southern gas installations by the Ministry of Petroleum and Natural Resources.
A PAC meeting chaired by opposition leader in the House Khursheed Shah reviewed a 2016 audit report of the ministry and found out that Rs48 million was paid to the Sindh Rangers and Rs54 million was paid to the Punjab Rangers for the services provided by these forces. The payments were made on the basis of an agreement signed between the ministry and the Rangers in 2003.
According to the report, the security for Sui Southern Gas Company Ltd was outsourced by Sindh Rangers to a private company and billed M/S Mehmood and Brothers through the Accountant General of Pakistan Revenue (AGPR). The report added that the Punjab Rangers also paid rent for 20 cars from a company named M/S Barki Traders.
The report also noted that all payments were made on the basis of vouched account submitted by Sindh Rangers and Punjab Rangers for security duty.
Upon scrutiny of the vouched accounts, it was revealed that the payments were made on the basis of an agreement between the Rangers and the Ministry of Petroleum, but surprisingly neither a copy of the contract nor concurrence to the contract by the Ministry of Finance was provided.
According to further details, the ministry paid the bill of M/S Mehmood and Brothers presented to it by the Sindh Rangers, but the record relating to the award of the contract to the contractor, and the procurement process followed, was not provided to audit despite requests.
Sindh Rangers had also not provided these details/documents during their audit.
Similarly, on the bill of M/S Barki Traders presented by Punjab Rangers for the hiring of 20 vehicles, the procurement process followed for such services has not been shared with the audit. The report said that there was also no recorded evidence of income tax deductions for the hiring of vehicles and other charges.
The audit report noted that in the absence of the record, the authenticity of the expenditure could not be ascertained.
The report also noted that according to a summary submitted by the petroleum ministry to the prime minister, the current arrangement may not continue indefinitely, especially in view of the expenses involved and apparent distraction of agencies from their core functions. However, it added that the arrangement may continue on selective sites to be identified by the companies in consultation with the relevant security agencies.
Subsequently, the PAC asked for a complete record of the ministry’s agreement with the Rangers and all payments made.