SNGP, SSGC Staff’s Luxurious Lifestyle Revealed in Explosive Audit

A parliamentary audit review has uncovered over Rs. 1.7 billion in controversial spending by Pakistan’s two state-owned gas utilities, including Rs1.604 billion in bonuses at Sui Southern Gas Company (SSGC) and Rs115.6 million spent by Sui Northern Gas Pipelines Limited (SNGPL) on tea, coffee, club memberships, and subscriptions.

The findings came to light during a meeting of the Public Accounts Committee (PAC) Sub-Committee-II, which examined audit observations relating to the Petroleum Division for the period from 2011-12 to 2022-23.

According to audit officials, SNGPL treated Rs. 115.6 million spent on refreshments, club memberships, and subscriptions in 2018 as human resource expenses and recovered the amount through gas tariffs charged to consumers.

Auditors argued that such costs were unrelated to the company’s core operations and should have been paid from corporate profits rather than passed on to gas users.

SNGPL management defended the expenditures, stating that club memberships and other employee benefits were provided under board-approved service rules. Company officials also told the committee that employees now pay nearly half the cost of tea and coffee.

PAC Convener Syed Naveed Qamar questioned the unusually high refreshment bill, asking what kind of tea and coffee could cost so much. He also objected to consumers bearing the cost of executive club memberships, saying the public inevitably questions how its money is being spent whenever gas prices rise.

The committee was informed that the Oil and Gas Regulatory Authority (OGRA) has excluded club memberships, subscriptions, and several other non-operational expenses from gas tariff calculations since 2021. The audit objection against SNGPL was subsequently settled.

In a separate case, auditors questioned SSGC’s payment of Rs1.604 billion in bonuses to executives and employees despite the company not reporting a profit.

The audit noted that the payments were inconsistent with Finance Division guidelines and included bonuses for the company’s managing director.

SSGC management maintained that the bonuses were performance-based and awarded under board-approved service rules, arguing they were linked to individual performance rather than the company’s financial results.