Six major PSO depots categorised as 'high risk': audit report revelation

A Pakistan State Oil audit report has categorised its six major depots as 'high risk' for massive theft and non-compliance of standard operating procedures (SOPs) and recommended the management strict security measures to make sure that such practices come to an end forthwith.
The depots which have been reported 'high risk' in the audit report are Sahala (three depots) KTC and Shikarpur (two depots). The audit report said that massive theft of lubricants and other petroleum products have been detected from these depots and the management should make appropriate measures to check theft and other events being committed by some unscrupulous elements.
The report said that theft of lubricants have been noted from Shikarpur deport and the management has been directed to deduct the amount equal to the value of the lubricants from the bill of the security contractor. Similarly, the audit found non-compliance of proper security measures at KTC depot resulting in risk to the employees working at the depot.
After detecting of non-use of PPEs the management has been asked to put in place PPEs for recovering of leaky products as per HSE manual. The audit has also seen variation in posting of accounts. In this the company has been directed to post receipts from Parco as per SOPs on timely basis and concerned officials may be asked to furnish reasons for not posting the account properly in the past.
In Sahala depot, audit reported negative stock of PMG supplied by Attock Refinery. The audit suggested to the management of the company to negotiate with ARL to ensure timely documentations of the supply to check proper reporting of the stocks in future. The management has assured the audit department that the supply department is co-ordinating with ARL for submission of receipts of the supply to have proper record of the stocks so that no theft or under-reporting could be done by anyone in future.
The audit said that there is no control or system in place in Sahala depot as it found difference of 24-KL lubricant in opening stock showing poor security arrangements at the depot. The audit recommended the management to put in place a strict security control so that no adjustment is made in stock after posting of inventory stock.
These cases are common which are clear indication of huge bungling and theft of petroleum stocks at different major depots of the company. The audit has also seen massive theft of petroleum products at company owned depots and recommended different steps to make sure that proper check and balance is made for putting and end to such practices which are causing huge financial loss to the company.