The PSU splurges on oil honchos & their families at strategic meetings
Throwing the government’s orders on austerity to the winds, cash- rich Oil and Natural Gas Corporation (ONGC) has been splurging on beauty treatments and massages for oil honchos and their spouses during strategy meets.
In the past three months, former and serving petroleum ministry officials and ONGC honchos went for brainstorming sessions on oil security needs to exotic super luxury destinations in Rishikesh and Kovalam. Both meetings were spiced up with ayurvedic massages and unlimited supplies of top- of- the line Scotch whisky for the invitees. On both occasions, ONGC played gracious host and picked up the bills.
On November 21, ONGC chartered a Kingfisher aircraft to airlift 40 former CMDs, directors and their spouses, and spent about Rs 1 crore on their travel, hotel stay and beauty treatment at the five- star deluxe Leela Kovalam Beach Resort in Kovalam. About Rs 25 lakh was spent on the chartered flight.
During another such two- day conference held on September 25, petroleum ministry officials blew up tax payers’ money at the world famous Ananda in the Himalayas, a spa at Rishikesh.
The ministry brass stayed at this resort, where tariff for a plush villa with a private swimming pool could go up to Rs 1 lakh a day. About Rs 1 crore was spent on their travel, stay, and other expenses such as premium Scotch whisky and ayurvedic rejuvenation therapies.
The lavish expenses were cleared in the name of ‘ strategic meets’ — an annual affair to discuss and devise strategy and the country’s oil needs, said ONGC officials.
ONGC figures in the Fortune 500 global list but its profits have been dipping. According to the unaudited financial results ( provisional) for the quarter ended September 30, 2008, the net profit after taxes was Rs 4,808 crore.
But, for the quarter ended June 30, 2008, the net profit after taxes was Rs 6,592 crore, showing a drop of about Rs 1,784 crore.
ONGC chairman and managing director R. S. Sharma, who was present at these meets, said: “ It is a company with a Rs 60,000- crore turnover and if a strategic meet is organised where a few lakhs, or even a crore is spent, it is not wasteful expenditure but a long- term investment.” But what about the Prime Minister’s prescribed austerity drive? “ We have convened a meeting for which a draft resolution is ready. Austerity measures will be taken and expenses curtailed,” he said.
Union petroleum secretary R. S. Pandey spent three nights at a luxury villa at the resort, offered at a discounted rate of Rs 58,000 a night. He ran up a bill of Rs 1.95 lakh on his stay, entertainment and massage. V. K. Diwangan, director ( exploration) in the ministry, blew up Rs 90,000 in three days. The tab was picked up by ONGC. ONGC’s director D. K. Pandey spent around Rs 95,000 during his stay at Ananda Spa but CMD R. S. Sharma settled the bill at Rs 75,000.
Some bureaucrats went in for exfoliation sessions, a cosmetic procedure to remove dead skin cells from the face and body using jasmine salt scrubs, wild rose salt glows, ancient Indian honey and sandalwood rubs.
Liquor flowed like water during the stay. The bill for liquor, which included Johnny Walker Black Label added up to Rs 6.34 lakh.
Apart from ONGC’s CMD and board members, those who participated in these brainstorming sessions were the secretaries in the petroleum ministry S. Sundareshan (spent Rs 78,000) and P. K. Sinha (spent Rs 39,000), special secretary Sindushri Khulla, joint secretaries Sunil Jain and D. N. Narsimha Raju (spent Rs 80,000) and petroleum minister Murli Deora’s personal secretary Sanjiv Kumar (spent Rs 80,000).
For the strategy meet at the Leela resort in Kovalam from November 21 to November 23, inquiries revealed that around Rs 42 lakh was spent on hotel stay, entertainment and food.
About Rs 2 lakh was spent on massages and another Rs 2 lakh on liquor.
Apart from Sharma, those who attended the meeting — for which the invitees were allowed to bring their spouses along — were former CMDs Subir Raha, Col S. P. Wahi, S. K. Manglik, B. C. Bora and L. L. Bhandari.
A department of public enterprises (DPE) “ guideline on expenditure management — fiscal prudence and austerity” mentions that utmost austerity should be observed in organising conferences, seminars or workshops.
But, minister of state for petroleum and natural gas Dinsha J. Patel and top ministry bureaucrats have been splurging at five- star hotels on ONGC’s account and misusing government vehicles.
When Patel visits his hometown, Nadiad in Gujarat, ONGC provides him airconditioned vehicles for his family and staff.
Records show that on at least 50 occasions in the last six months, ONGC hired Toyota Innovas, Taveras and Ford Ikons for Patel and his family, the bills for which added up to Rs 2 lakh.
Patel admitted that he occasionally took vehicles from ONGC. However, he declined to comment on the lavish expenditure of his ministry officials.
The PSU has reimbursed the hotel bills of the petroleum and natural gas ministry officials.
Diwangan alone accounted for Rs 4.5 lakh in the past nine months for staying at the country’s top hotels.
Petroleum secretary M. S. Srinivasan also ran up high bills on his hotel stays. His bill for staying at The Oberoi in Mumbai from January 6 to 8, this year was Rs 95,000. He stayed twice at the Taj Lands End, spending Rs 82,000, while for his accommodation at Taj Coromandel, ONGC shelled out Rs 27000.
CMD Sharma insisted it was normal to spend extra on bureaucrats. “ If officials are involved in activity related to the company, they have to be looked after and it will be billed to the company,” Sharma said.
A top Central Vigilance Commission official disputed his contention.
“ Bureaucrats are not authorised to waste taxpayers’ money and such issues have been raised in the past with the government.
The PSUs must explain under what provisions these expenditures were incurred and if the ministry had accorded approval for them,” he said.
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