ISLAMABAD, March 29: The Sub-Committee of the National Assembly’s Public Accounts Committee (PAC) on Wednesday formed two inter-departmental committees to investigate the non-utilization of 95 per cent developmental grant for Petroleum Ministry and purchase of oil products from a foreign company at higher than market rates.

The sub-committee, chaired by Riaz Fatiana, MNA, was examining the audit reports related to the ministry for the year 1995-96.

Replying to audit objections Additional Secretary Petroleum Shaukatullah said the ministry could not utilize Rs525,096,491 out of Rs547,293,000 developmental grant due to certain reasons.

Riaz Fatiana made the observation that due to hurdles created by the so-called red-tape the investors are scared of investing in the country.

Member of the sub-committee Lt-Col (retd) Ghulam Rasool Sahi pointed out that it is often observed that ministries and departments surrender unused amounts at the end of the financial year, although the last date for surrendering such amounts is May 15. He said this trend should end.

On this the chairman sub-committee Riaz Fatiana formed an inter-departmental committee headed by Joint Secretary Finance Syed Afzal Shah to scrutinise the facts and fix responsibility for this laxity on the part of the officials concerned.

The other two members of the committee will represent the ministry and Auditor General office and the committee will present its report in two months.

Riaz Fatiana said that report of the committee would help in improving efficiency of the ministry in future. He advised the newly formed committee to suggest action against those responsible for non-utilization of the grant.

Regarding purchase of oil products from Taftan Oil Company in 1995-96, Shaukatullah said basically it was an anti-oil smuggling measure initiated by the then Balochistan Chief Minister. He said the issue had already been investigated by National Accountability Bureau but nothing illegal was found in this deal.

Riaz Fatiana said that one could not understand as to why oil was purchased at higher than market price and how could it have checked smuggling.—APP