15-05-2025
- Business
- Business Recorder
Late payment surcharges: PAC dismisses PPL's Rs1.2bn claim against Cnergyico Pk Ltd
ISLAMABAD: A sub-committee of Public Accounts Committee (PAC) has dismissed Pakistan Petroleum Limited (PPL)'s Rs 1.2 billion claim for late payment surcharges against BYCO Petroleum Pakistan Limited now renamed Cnergyico PK Limited on long outstanding dues.
The committee concluded that no formal sale agreement existed between the two companies and the matter was sub-judice thus, nullifying the surcharge claim.
Syed Naveed Qamar convened the meeting to examine Audit Report of Petroleum Division (PPL, OGDCL, PMDC and ISGS) for audit years 2022-23 to 2014-15, 2012-13 and 2011-12.
During the audit of PPL for the fiscal year 2017-18, it was observed that PPL made supply of condensate to BYCO and an amount of Rs 1.2 billion was outstanding for the period from December 2009-11.
The condensate was sold to BYCO without any agreement and all supplies were made on the direction of Ministry of Petroleum and Natural Resources. However, no payment was made by BYCO. The PPL made a number of requests to BYCO and the ministry for the payment of outstanding dues. Later on, the company declared the amount of Rs 1.181 billion as doubtful debts and subsequently, made provisions of doubtful allowance in the annual accounts for the year 2011-12.
An official of NAB apprised the members' committee that BYCO honoured its commitment and deposited Rs1.2 billion outstanding principal amount to NAB and the amount was returned to PPL after keeping lawful 25 percent share in the recovery.
Copyright Business Recorder, 2025
