ISLAMABAD, Sept 13: An unusual lobbying is going on to postpone meeting of the standing committee on petroleum and natural resources till completion of the National Assembly term later this year to avoid discussions on affairs of Pakistan State Oil (PSO) and security risks linked to its proposed privatisation.
A senior government official told Dawn that a scheduled meeting of the standing committee for September 15 was postponed on Thursday without assigning any reason. The standing committee has not met for almost six months despite issuance formal notices many a times.
On the agenda of standing committee’s meeting are issues like presentation of a report of the sub-committee on affairs of PSO, the impact of privatisation of PSO on the supply of oil products to defence forces and other security institutions besides a scrutiny of contracts awarded by PSO for clearing and maintenance in the last five years. The committee is also required to review progress on Saindak Metal Limited.
Informed sources said the management of PSO and some treasury members were trying their best to ensure that the committee did not meet in the remaining term of the National Assembly because approval of an inquiry report finalised by a sub-committee could lead to placement of its findings before the Supreme Court of Pakistan that is expected to take up privatisation of PSO case anytime soon.
Opposition members, the sources said, on the other hand have protested over the postponement of the meeting and have demanded to either hold the meeting on September 15 according to original schedule or convene it on September 17 to complete the unfinished agenda.
The Supreme Court had recently stayed further proceedings on the privatisation of PSO and had sought entire record about the transaction from the privatisation commission. The court had observed that it would look into the overall transaction keeping in view the security interest of the country and if it at all was in the national interest.
The standing committee had constituted a sub-committee to look into the affairs of the PSO over the last six years January 2000 to July 2006. The sub-committee in a detailed investigation report finalised a few days ago levelled serious allegations of financial and administrative irregularities and has called for strict legal actions against the ministry concerned and PSO management.
The report opposed the privatisation of PSO from the perspective of national security and public interest and claimed that the standing committee of the National Assembly on Defence had also opposed its privatisation. The committee attributed better financial results of PSO to over 520 per cent rise in company margin increased by the government and inventory gains.
The sub-committee led by MNA Pir Fazal Shah Jilani has also accused the PSO management and senior officials of manipulating accounts, dumping of petroleum products for illegal personal gains, corruption in petroleum exports and award of contracts, misappropriation in oil imports, illegal appointments and promotions and abnormally high administrative costs.
At the same time, the committee accused the ministry of
petroleum and natural resources of its involvement in the above mentioned allegations, at times obstructing investigations and absolving itself of any responsibility despite being an owner of the company and director on its board of directors.
As a result, the committee was of the “ firm opinion that the special audit of PSO is carried through Auditor General of Pakistan within specific timeframe to undertake performance evaluation of PSO strictly in accordance with the TORs” of the said committee.
The report also demanded that “the inquiry pending in the ministry of petroleum and natural resources and National Accountability Bureau (NAB) regarding the affairs of PSO need prompt processing/completion in overall national interest”.
The committees concluded that “the privatisation process which is hurriedly being processed to benefit the vested interests before commencement of the next general election is aimed to avoid the process of accountability in the subsequent stages. It is pointed out that the PSO has the monopoly of the 82 per cent of oil storage and market share of 70 per cent in the oil industry. The proposed privatisation will expose the masses to economic exploitation”.
