Investigation will endanger economy: Abbasi

Islamabad: The re-launching of the investigation by the National Accountability Bureau (NAB), once shelved by itself in December 2016 on the plea that the probe will jeopardise LNG supply to the country, will serve nothing except endangering business climate created for LNG sector, former prime minister Shahid Khaqan Abbasi said.

Talking to The News, the former premier said investigation by the NAB into alleged swindling of $2 billion in awarding contract of 15 years to Engro Company for Pakistan’s first LNG project may slow down the impending investments in LNG sector. He said it will ultimately compromise Pakistan’s economy and energy security. Almost after three years period, the NAB on June 6, 2018 again approved investigation against ex-premiers Shahid Khan Abbasi and Mian Nawaz Sharif over questionable deal with Engro for LNG terminal against the rules when Abbasi was the petroleum minister in Nawaz' cabinet. “The investigation has behind itself the political motives,” Abbasi said.

The NAB Karachi first started the preliminary inquiry on July 29, 2015 and sought approval from the NAB chairman for formal inquiry against then minister for petroleum Shahid Khaqan Abbasi and many other top officials for being involved in award of contract and LNG services agreement (LSA).

Later on, in December 2016, the then DG NAB Col Siraj Naeem dropped further probe saying though the contract awarding process is not transparent even then after exhaustive discussions it has been decided that it is ongoing project and any intervention by NAB at this juncture will jeopardise the efforts of provision of LNG from the project of national importance.

Abbasi said the probe announcement by the NAB sent wrong signal to LNG producing countries as well as the LNG trading companies and more importantly the international companies such as Exxon Mobile and Shell which plan to invest in joint ventures with local private firms. He said it may slow down investment in LNG terminal at Port Qasim. Abbasi said the NAB’s probe will serve nothing to the country except creating awful business climate for potential investors in LNG sector.

“If I get credit of importing LNG in the energy starved country then I will also accept any discredit if any flaw in the process of awarding the contract is found,” he said.

“I am open to any kind of probe, but the NAB doesn’t need to harass the officials involved in the process as all the things they did were on his directions,” he said, adding that he was again ready to submit his statement with the NAB officials that he is responsible for all the things in developing LNG infrastructure in the country and importing the product. The former premier said Pakistan has managed to get capacity to import 1.2 bcfd LNG in the country and its capacity will further increase to import the product by up to 3.6 bcfd in next two to three years, but it all depends upon the business climate in the country. Jahangir Paracha, CEO of Engro Elengy Terminal Limited (EETPL), clarified that the company has always acted, and continues to act, in a fair and transparent manner in its business and commercial commitments. He said the company would extend all possible cooperation to regulatory and relevant government agencies for information requested pertaining to NAB's inquiry as in the past.

Going forward, Paracha said, the company believes the LNG is an important input for Pakistan's energy security and the country should move towards a deregulated, competitive merchant model so that the consumers could get the best possible price.

The NAB spokesman Nawazish Ali, however, said there will not be any adverse effect on the future imports of LNG in Pakistan and there will not be any hindrance in the inflow of importers of LNG who wished to establish LNG terminals in Pakistani ports after completion of all codal formalities as per law.

In fact, he said, the inquiry into alleged illegal LNG terminal of EETPL by the NAB is under process and it is not appropriate to comment on that inquiry but he can assure that the inquiry will be absolutely transparent and on merit. "It will enhance the image of country as Pakistan is a safe place for legal investment and the apex anti-corruption organisation is absolutely transparent to eradicate corruption from the country across the board especially illegalities and abnormalities in the imports especially with respect to imports and handling of highly volatile fluids in Pakistan," he said. Moreover, he said, all the genuine and legal importers not only of LNG but other goods will also prefer a country which is safe for international and national investment because the whole country under the ambit of NAB believes zero tolerance against corruption.

The top officials of Petroleum Division say that Inter-State Gas System (ISGS) on the instructions of the ministry initiated the tendering process of country’s first LNG terminal on behalf of Sui Southern Gas Company (SSGC) based on terms approved by the Economic Coordination Committee (ECC).

“A fully PPRA compliant and transparent process with the assistance of an independent international consultant was carried out with full participation of SSGC, PQA and the ministry. Board of ISGS fully enforced and recommended it to SSGC,” the officials said. “The ECC deliberated and approved it and give Ogra policy guidelines to notify tariff which they did. SSGC signed the contract and executed it,” they said.

The officials said the successful transparent bidding was much appreciated in the world and Pakistan emerged as one of the potential large LNG market and as a result major LNG players came and offered best prices.