Govt announces social audit guidelines for oil, gas firms

ISLAMABAD: The Ministry of Petroleum and Natural Resources is revising social welfare guidelines for carrying out development schemes in oil and gas producing Tehsils and districts across the country, official sources said.

Under the revised guidelines, social welfare schemes will be based on the requirement of areas and identified by concerned members of national assembly of districts in consultation with representatives of local bodies or local administration, they told APP.

Facilities like health, education, water supply, improved drainage and sewerage system will be the key features of welfare projects, they said. They added that practice of cash donations to patients will be discouraged to end reported complaints of malpractice.

They said oil and gas exploration and production (E&P) companies will open a joint bank account with district coordination officers (DCOs) and deputy commissioners (DCs) and deposit the social welfare contribution fund within one month of signing petroleum concession agreement (PCA) and subsequently by January 31 every year.

DCOs, DCs and E&P companies will sign cheques within a week after receiving complete requisition from the concerned agency, they said. Members of national assembly and other concerned will get input of locals in welfare schemes, make publicity of development projects and ensure their timely completion, besides holding public hearings in project areas.

They said the companies will provide audit certificate annually from their statutory auditors that the due amount of social welfare obligation has been discharged by transferring to the joint account as per the PCA and social welfare guidelines.

The sources said provincial governments will send a report in respect of completed schemes to federal and provincial ombudsmen and the human rights cell of the Supreme Court twice in a year by end of July and January each year.

On completion of the work, a prescribed completion certificate will be issued by concerned DCOs and DCs within 30 days, while annual progress report of the previous calendar will be forwarded to the ministry by March 31.