The Sui Southern Gas Company (SSGC) and the Sui Northern Gas Pipelines Limited (SNGPL) are running on heavy borrowing, and auditors have identified a series of financial irregularities in these two public sector companies.
The two companies refused to produce documents for audit and never replied to the questions raised by the auditors regarding their financial affairs.
According to a latest audit report, the SSGC’s reliance on debt is continuously increasing year by year which is a sign of serious financial risk.
The finance cost increased by 30.1 per cent from Rs5.786 billion in 2011 to Rs7.531bn in the year 2012, said the report.
With poor cash position, the company has been making costly borrowings. The trade debts were Rs49.1bn in 2011 which increased to Rs71.7bn in 2012.
During the audit of SSGCL for the year 2012-13, it was observed that the company could not produce requisite records despite frequent reminders.