Pakistan’s Public Accounts Committee (PAC) has sharply criticized the Oil and Gas Regulatory Authority (Ogra) for diverting over Rs1.4 billion in public funds into short-term investments instead of transferring the money to the federal consolidated fund, as required by law.
The revelation came during a PAC session on Wednesday, chaired by Naveed Qamar, where the committee examined audit reports for Ogra and the Petroleum Division for the 2023–24 financial year. Lawmakers expressed frustration over what they called a pattern of financial mismanagement within the regulator.
Audit Report Highlights Major Violations
The audit flagged that Ogra withheld Rs232 million in surplus receipts from the 2022–23 fiscal year, redirecting it toward operational expenses and investments. This sidestepped the Treasury Single Account (TSA) policy, which mandates all surplus funds be deposited with the federal government.
Auditors also revealed that Ogra spent public receipts on capital projects, including office construction and vehicle purchases, despite having dedicated budget allocations for those items.
“This is a blatant violation of financial rules,” the Director General of Audit told the committee, calling Ogra’s approach “a serious lapse in financial discipline.”
Committee Orders Recovery of Funds
PAC Chair Naveed Qamar ordered Ogra to return the full Rs1.4 billion once its short-term investments mature. He slammed the regulator’s actions as “a worrying sign of financial overreach” and warned that such practices undermine fiscal accountability.
Spending Spree Despite Government Ban
One of the more contentious findings was Ogra’s decision to purchase Rs22 million worth of vehicles during a government-imposed freeze on car procurement. PAC member Syed Hussain Tariq described the move as “irregular and unjustifiable,” questioning why a regulator would bypass clear restrictions.
Why It Matters
The episode highlights a growing concern over how autonomous regulatory bodies handle public funds. While Ogra’s investments may have been aimed at generating returns, bypassing the federal treasury and ignoring spending bans could set a precedent for other agencies to sidestep oversight.
The committee is expected to monitor Ogra closely in the coming months to ensure compliance with financial regulations.
