Aamir Lashari
ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) has come under audit scrutiny over the irregular hiring of vehicles worth Rs24.610 million for rig operations, despite the availability of seven prequalified firms.
According to the audit of OGDCL for FY 2024-25, seven firms were prequalified for hiring vehicles for rig operations for three years through a letter dated September 30, 2024. However, from October 2024 to June 2025, the Drilling Operations Department hired vehicles through quotations from local transporters or extended previous contracts instead of using the prequalified firms.
Audit termed the hiring a violation of the Public Procurement Rules, 2004. Management told the DAC on December 24, 2025, that the prequalified firms could not provide vehicles because formal LOIs were pending issuance by the Supply Chain Management Department. Vehicles were therefore temporarily hired from local contractors to avoid disruption of rig operations.
Audit contended that hiring vehicles from non-qualified firms was a violation of PPRA Rules, while the DAC directed management to submit a revised reply explaining the award to prequalified bidders and the intervening period. However, no further progress was reported until finalization of the audit report.
Audit has recommended an inquiry into the procurement of services in violation of PPRA Rules and compliance with the DAC decision.
The audit findings raise some basic questions: Why were vehicles hired through quotations when seven firms had already been prequalified? Why were the LOIs not issued in time, and who was responsible for the delay?
As Audit has recommended an inquiry, would it not be appropriate for the MD to ensure that the matter is examined, responsibility is determined and those responsible are held accountable?
The DAC’s direction also remains to be addressed: why was no further progress reported, and what caused the delay?
Another question is whether the vehicles hired through quotations between October 2024 and June 2025 have since been discontinued or are still being used.
More broadly, would it not be appropriate to strengthen safeguards to ensure transparency, merit and fair competition in the use of OGDCL’s resources?
