Para No. 8.5.4.

1 DAC Recommendations Company’s Response

Loss on account of gas theft by various customers - DAC Recommendations Company’s Response Before DAC
Rs. 811.466 million Dated 23.08.2019 (Draft
Minutes) UPDATED POSITION OF RECOVERY AS ON 15.10.2019
As per Procedure of Sui Southern Gas Company
Limited (SSGCL) for dealing the theft cases, when any
DAC directed the Category No. of Amount Amount Remarks
consumer is found involved in the theft of Gas through Cases Rs. in Recovered
management to provide the
tampering in the meter, the recovery will be charged by million Rs. in million
updated status of gas theft
assessing the value of Gas stolen or any other Domestic 1,724 367.158 117.218
cases relating to
appropriate action is taken. Industrial 22 169.262 8.55
unregistered consumers and Data CNG 01 29.085 - The matter is subjudice in the
During audit of SSGCL for the year 2015-16, it was pursue the court cases Station respective court of law. Next date
observed that 1,897 gas theft cases (domestic: 1,724, vigorously and recovered of hearing is 08.11.2019.
the outstanding amount Shahbaz 01 *185.558 - Actual gas theft claim is Rs. 60.933
industrial: 22, un-registered customers: 149 & CNG CNG Station million and not Rs. 185.558
stations: 02) were reported amounting to Rs.811.466 from domestic and million. The Anti-Corruption Court
million during the year 2015-16. However, no recovery industrial consumers at the (Central) Hyderabad announced a
was made (Annexure-20). earliest. DAC further detailed judgment on gas theft
recommended to reduce the committed by Shahbaz CNG
Audit is of the view that the management failed to Station in Jamshoro. The matter
para to the recovered was decided against the defendants
prevent the theft of gas despite the fact that SSGCL has amount of Rs. 78.299 however, such order was
robust system of surveillance and vigilance to prevent million. challenged before Sindh High
the theft of gas. The management also failed to initiate Court. The SHC vide its order
legal proceedings against those involved in theft of gas DAC Recommendations dated 27.05.2019 held that the trial
court was coram non judice and
and the officers/officials responsible for monitoring of Dated 11.02.2019 (Draft referred the matter to Gas Utility
gas theft. Minutes) Court for de novo trail.
The management stated that The case is now in evidence
The matter was pointed out to the management on an amount of Rs. 122.750 recording stage which will start on
December, 2016 but no reply was received. DAC Dec 14, 2019
million has been recovered
Un- 149 60.403 - Recoveries from Un-registered
meeting was not convened by PAO despite request by till December 31, 2018. Registered customers is always challenge for
audit. gas theft the Company. Gas supply is
DAC directed the cases immediately disconnected and
Audit recommends expeditious recovery of management to get the FIRs are lodged if feasible.
Government dues and initiation of legal proceedings recovered amount verified Total 1,897 811.466 125.768
against customers involved in gas theft. from Audit and pursue the *Amount involved in this para is Rs. 686.841 million and not Rs. 811.466 million i.e
recovery of outstanding difference of Rs. 185.558 million and Rs. 60.933 million as stated above. Total
amount. recovery is Rs. 125.768 million out of Rs. 686.841 million.