22 bn LNG deal with Qatar group negates PPRA rules, says TIP

ISLSMSBAD: Transparency International Pakistan (TIP) says the $22 billion LNG deal being finalised with Qatar at exorbitantly high cost is sheer violation of the PPRA rules.
The LNG deal is being awarded at the rate of 14.5 percent of Brent plus $0.65 freight whereas some years ago India awarded contract at 11 percent of Brent and $0.40 freight.
TIP has mentioned this in its letter written on March 17, 2015 to Shahid Khaqan Abbasi, federal minister for petroleum and natural resources. TIP says it has received a complaint that PSO, in volition of PPRA rules, has awarded unsolicited LNG procurement contract to a commercial group of Qatar.
When contacted the minister said he hasn’t received the letter. However, he said that LNG deal will be done in the supreme interests of the country and there will be no violation of PPRA rules at all.
TIP quoted the contents of the complaint as saying that PSO, in accordance with law, invited tenders in October 2014 for import of LNG, but in December 2014, under illegal construction of the ministry of petroleum, scrapped the tender.
It also said that acting MD PSO, who was reported to be blacklisted along with all members of the board of directors of PSO by the inquiry committee of Barrister Zafar, is responsible for illegal award of unsolicited $22 billion LNG procurement contract to a commercial group.
The contract is awarded at the rate of 14.5 percent of Brent with $0.65 fright, whereas some year back, India awarded contract at 11 percent of Brent and $0.40 freight. In the letter, TIP also mentioned that the UK consultant M/s QED recommended to the ministry of petroleum not to award contract for more than 2 years as the international shale prices are forecast to come down drastically, but PSO MD Mr Shahid has awarded the contract for 15 years. Board of PSO is deliberately not formed so that the illegally appointed acting MD is allowed to execute the illegal contract.
TIP in the letter also advised the petroleum minister to note that in Islamabad High Court’s judgment, para 9, the award of unsolicited contract under prime minister’s directive to NLC worth over Rs5 billion was declared illegal. The para says: “in view of the above discussion, writ petition Nos 3387/2012 and 582/2013 are allowed. I declare that assigning of work to respondent no 5 i.e NLC is illegal, unconstitutional, besides PPRA ordinance 2002 and PPRA rules 2004, dictums laid down by august supreme court offensive to the universally accepted principle of fairness, honesty, transparency, openness and is result of colorable exercise of authority, irrelevant considerations, a naked corruption, polluted mannerism, offensive to public exchequer the contents of the complaint and an infringement to constitutionally guaranteed fundamental rights. It is also declared that assigning of work to NLC is glaring example of discrimination, favoritism, nepotism, ulterior motives and stinking approach to advance personal agenda”.