Pakistan

Senate panel exposes fake claims and massive OMC subsidy irregularities

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Web Desk

ISLAMABAD: A meeting of the Senate Standing Committee on Cabinet Secretariat was held on Tuesday under the chairmanship of Senator Rana Mahmood-ul-Hassan, with senior officials including the Secretary Cabinet Secretariat and the Chairman of the Oil and Gas Regulatory Authority (OGRA) in attendance.

During a briefing on OGRA-related matters, the Chairman of OGRA informed the committee that the Federal Investigation Agency (FIA) and other relevant bodies may take notice of alleged misuse of public funds and corruption concerns.

He said it would take around three to four weeks to settle pending claims submitted by Oil Marketing Companies (OMCs), after which the committee set a one-month deadline for final resolution of the issue.

The OGRA chief revealed that OMCs have demanded Rs82.5 billion from the government as subsidy support in connection with fluctuations caused by the Middle East conflict. He explained that the government had already decided on March 14 to absorb increases in international oil prices.

According to him, payments have already been made in phases, including Rs17–18 billion for the first week, Rs15 billion for the second week, and Rs18 billion for the third week, covering about 40 percent of the total payable amount.

However, he added that the remaining outstanding amount for the last two weeks stands at around Rs33 billion, while overall additional payments of Rs50–55 billion are still due to OMCs for the three-week period.

In a major revelation, the OGRA chairman said several oil marketing companies had submitted fake claims, with some even lacking actual oil stock but still demanding millions of rupees from the government.

The Senate committee strongly recommended strict action against those involved in fraud and submission of fake claims.

Web Desk

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