Utilisation of CSR funds: PAC panel asks PD to submit new guidelines by 23rd

ISLAMABAD: A parliamentary panel Wednesday expressing utter displeasure over utilisation of funds collected under Corporate Social Responsibility (CSR) from local and foreign exploration oil and gas companies, asked the Petroleum Division to submit new guidelines for utilisation of CSR funds till February 23, 2021.

A subcommittee of the Public Accounts Committee (PAC) was informed that new guidelines for utilisation of CSR were approved by the Minister for Energy (Petroleum Division) in 2020 under the Petroleum Exploration and Production Policy, 2012.

Former petroleum minister Naveed Qamar was the convener of the committee.

The policy as approved by the Council of Common Interests (CCI), states that training shall be provided for capacity building of Pakistani employees and the federal government and the provincial governments concerned officials by foreign and local E&P companies including internship/scholarships and training of the local inhabitants in various institutions.

The convener committee expressed his utter displeasure when the director general (PC) Petroleum Division disclosed that an amount of Rs2.2 billion spent on international litigation from fund out of total collection of Rs2.6 billion from 2008-2020, and Rs51.4 million spent as miscellaneous.

As much as Rs89.61 million was spent on salaries, Rs25.82 million on training and Rs5.80 million on scholarships for locals.

An amount of Rs215.9 million under the CSR has been pending against the companies including M/s Dewan Petroleum, M/s Hycarbex, and M/s PEL.

A meeting was held with the Finance Division on June 2, 2020 for reimbursement of Rs2.17 billion.

The Finance Division recommended to recover the amount from Ali Allavi and Pro-Gas Companies and also suggested that some cost can also be recovered from the Sui Southern Gas Company (SSGC). The division also suggested re-appropriating the cost of litigation utilised out of the training fund.

The Petroleum Division did not agree with the suggestion.

Qamar said how the secretary finance could say for regularisation of funds criminally spent on other projects rather than under the CSR.

“The government is the custodian of funds not the owner of funds, and spending on other purposes is in violation of the constitution,” he remarked.

Copyright Business Recorder, 2021