Audit Report Exposes Alleged Extravagant Spending by Sui Gas Companies, Says Costs Passed on to Consumers

ISLAMABAD: A parliamentary audit report has raised serious questions over the spending practices of Pakistan’s Sui gas companies, alleging that billions of rupees spent on employee perks, including tea, coffee, club memberships, and performance bonuses, were ultimately recovered from consumers through gas tariffs.

According to the audit report, Sui Northern Gas Pipelines Limited (SNGPL) spent approximately Rs115.6 million on tea, coffee, expensive club memberships, and other employee benefits.

The report alleged that these expenditures were recorded as human resource costs and were later incorporated into gas tariffs, effectively shifting the financial burden onto consumers.

Responding to the audit observations, SNGPL officials maintained that all benefits and expenditures were granted in accordance with the company’s approved rules and regulations.

The Public Accounts Committee (PAC) also reviewed alleged financial irregularities involving Sui Southern Gas Company (SSGC) during one of its meetings.

According to the audit report, despite suffering significant financial losses, SSGC distributed approximately Rs1.604 billion in performance bonuses to its executives and employees.

The report claimed that these bonuses were awarded in violation of the Finance Division’s directives and applicable rules, adding that the company’s Managing Director was among those who received the payments.

In its defense before the PAC, SSGC management argued that the bonuses were based on the individual performance of employees rather than the company’s overall financial performance.

The Public Accounts Committee expressed strong concern over the reported expenditures and alleged violations of financial regulations, directing the gas companies to submit a detailed explanation regarding the audit findings.