ISLAMABAD: The management of Pakistan State Oil (PSO) has been given four weeks to settle a Rs150 million liability with the Staff Welfare Organization (SWO), failing which the matter will be referred to the Federal Investigation Agency (FIA) or the National Accountability Bureau (NAB) for recovery.
The ultimatum came on Friday during a meeting of the Public Accounts Committee’s (PAC) sub-committee, chaired by Tariq Fazal Chaudhry, which was reviewing audit reports of the Establishment Division for fiscal years 2003-04 and 2008-09.
The dispute revolves around a 14,256 sq. ft. SWO-owned plot on Court Road, Karachi, where PSO has been running the Court View Service Station since 1962. Audit records show the initial 30-year lease expired in 1992, after which SWO controversially renewed the lease for 10 years at a nominal Rs4,200 per month, without inviting open tenders.
Auditors observed that market rents for petrol pumps in the area were many times higher, and the irregular lease caused substantial government losses. Though the matter was pending before the Rent Controller of West Karachi, the department reportedly failed to pursue the case.
Subsequently, the site was leased out again through competitive bidding at an annual rent of Rs33.9 million, subject to a 10% yearly increase. However, an outstanding liability of Rs150 million remains unsettled.
The PAC sub-committee held PSO accountable for the dues, warning that failure to resolve the matter within the deadline would trigger an anti-graft inquiry.
Story by Wasim Iqbal
