Home » PAC Uncovers Financial Irregularities in Pakistan Post and Oil Wastage at PARCO

PAC Uncovers Financial Irregularities in Pakistan Post and Oil Wastage at PARCO

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The Public Accounts Committee (PAC), chaired by MNA Junaid Akbar Khan, reviewed the audit report for the Ministry of Communications for the fiscal year 2022–23 on Tuesday. The findings exposed serious financial irregularities within Pakistan Post, as well as gross negligence at the PARCO oil depot in Kot Addu.

Audit officials reported that Pakistan Post had inappropriately utilized Rs. 4 billion, which should have been deposited in the national treasury. The funds were reportedly collected across 37 post offices from utility bill payments and other postal services but were diverted for other unauthorized purposes.

Rs. 4 Billion Diverted for Unauthorized Payments

The misused funds were allegedly used to pay pensions to retired Pakistan Army officers and to process money orders and Western Union transactions, which is a deviation from standard procedures. The money, rather than being sent to the treasury, was absorbed directly by local post offices.

When questioned, the Secretary of Communications acknowledged the issue, attributing it to the lack of an efficient payment processing system. He assured the committee that the system had been rectified. However, audit officials contested this claim, saying that the illegal practices were still active in several locations.

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PAC members voiced concern about the scale of the issue and urged immediate corrective measures and accountability for those involved.


Oil Wastage Worth Rs. 181 Million at PARCO Depot

In a separate but equally troubling case, PAC reviewed a case of massive oil wastage at the Pak-Arab Refinery Company (PARCO) depot in Kot Addu. Officials informed the committee that oil worth Rs. 181 million had been wasted due to negligence.

According to the audit, oil flowed into a sewerage system after a depot employee left a valve open while stepping away to perform ablution. The incident raised questions about the depot’s operational safety and monitoring protocols.

The Managing Director of Pakistan State Oil (PSO), which operates the facility, informed the PAC that out of the total loss, Rs. 50 million remains unrecovered, while Rs. 42 million has been recovered from five employees who were held responsible and penalized.


Concerns Over Environmental Impact and Accountability

PAC member Shazia Marri raised a critical concern regarding the environmental damage caused by the spilled oil. She questioned whether any environmental audit or third-party assessment had been conducted to determine the ecological impact of the spill.

The committee did not receive a satisfactory response on environmental mitigation measures, leading to further scrutiny of the incident. The matter has now been referred to a PAC subcommittee for in-depth investigation and to determine whether the incident involved negligence or potential misappropriation.


PAC Demands Transparent Investigations and Reforms

The committee has called for a comprehensive investigation into both cases. It urged strict disciplinary action against those responsible, system-wide reforms to prevent further financial leakage, and the establishment of transparent and accountable payment and monitoring systems across public institutions.

Chairperson Junaid Akbar Khan reiterated that PAC would not tolerate such levels of mismanagement and neglect in key national institutions and vowed that all findings would be pursued to their conclusion, with results shared publicly.


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