ISLAMABAD: The Sui Northern Gas Company Limited (SSGCL) could not recover around Rs 90.72 billion from its various industrial, commercial and domestic customers during the fiscal year 2015-16.
“During audit of the company for the year 2015-16,it was observed that the management did not recover an amount of Rs 90,715.512 million from various industrial, commercial and domestic customers as on June 30, 2016. Moreover, the total receivable includes, unsecured amount of Rs 73,288.695 million,” the audit report for the year 2016-17, available with APP, said.
The audit authorities were of the view that undue favour was extended to the customers and the interest of the company was not safeguarded by allowing the recoverable amount beyond the security deposited by the customers.
It was informed that major portion of the non-recovered amount related to Water and Power Development Authority, Karachi Electric (KE) and Pakistan Steel Mills Limited (PSML). “Hence, it is a circular debt issue.”
The company management explained that increase in trade debts was mainly due to the circular debt issue and late payment surcharge mainly against KE and PSML.