Has NAB adopted a lenient policy towards industrialists?

ISLAMABAD: The National Accountability Bureau (NAB) quickly adopted ‘hands up’ policy in its plan to grill Engro Corporation’s Chairman Hussain Dawood, apparently after business tycoons complained in a meetintg.

Mr Dawood was summoned by NAB to appear before its investigation team on October 8, 2019 in LNG Terminal case. Despite a formal notice by NAB, Engro’s head did not appear before the investigation team. Interestingly, NAB did not follow it up despite his non-appearance.

The anti-graft body is investigating the LNG terminal case and arrested former minister for petroleum and natural resources Shahid Khaqan Abbasi, former finance minister Miftah Ismail and former MD PSO Imranul Haq in this case.

Despite 71 days of grueling of Shahid Khaqan Abbasi during the physical remand, NAB has failed to find a conclusive evidence that can implicate him in LNG terminal case as the anti-graft body is finding it difficult to file a reference against the former minister. The bureau has also investigated former finance minister Miftah Ismail for almost 50 days but it couldn’t find out any substantial evidence against him either.

The NAB investigation team is confused what charges should it add to file the reference against Shahid Khaqan Abbasi, Miftah Ismail and other co-accused. The Bureau’s officials have paid several on-site visits and obtained each and every document from Engro-Vopack as well as from Ministry of Petroleum and Natural Resources but still failing to file the reference against the accused.

The Accountability Court has sent Mr Abbasi, Miftah Ismail and Imranul Haq on judicial remand on September 26, but still it is not determined by NAB what charges should be levelled against them and when to finalise the reference.

However, NAB sources said that a committee has been formed to deal with cases related to traders and notices are being dispatched to concerned departments. They said that it was a baseless impression that NAB had softened its policy in connection with heinous crimes. He said that NAB action is in progress without any bias.

According to a well-placed source in the NAB, “The NAB investigation team working on LNG terminal case still has no idea what to do with this case. Sometime the team focuses on QED — the consultant company hired by USAID for LNG terminal. Sometime they asked the ministers why this project of building the terminal was initiated. The NAB team is worried that they have found nothing conclusive against the former ministers yet”.

The NAB’s investigations and its conduct in the LNG terminal case raises many questions. Below are few questions, which need to be answered by NAB.

1- The bidding mechanism was same for LNG terminals-I and II. Why did NAB only investigated the LNG terminal-I?

2- According to NAB, the government awarded the contract to Engro-Vopack on higher tolling rates. Did NAB check the record of bidding process to find out how many companies took part in the bidding? What were the quoted prices of other companies if any participated?

3- Shahid Khaqan Abbasi in his answer to NAB questionnaire mentioned that two companies applied for the contract of LNG Terminal-I. The second company was disqualified on technical basis. It is important to note that the single stage-two envelopes procedure was adopted for LNG terminal-I bidding. If the company was disqualified on technical basis, there must be the record of second company’s quoted price for this contract. Did NAB check the official record to verify what was the quoted price or tolling rates of second company? If the disqualified company offered lowest bidding rates or its tolling rates were higher than Engro?

4- Did NAB check the tolling rates and per day capacity charges of other regional counties’ LNG terminals? If yes then what were the tolling rates and per day capacity charges of other countries’ terminals at that time?

5- When PTI stalwart Asad Umar was CEO of Engro his bid for regasification was around $1.00/mmbtu. Isn’t it strange that NAB is questioning a deal that has a price of 48 cents/mmbtu —almost half of the price quoted by Asad Umar?

6- Has NAB found any evidence of corruption against the former minister for petroleum and natural resources Shahid Khaqan Abbasi or Miftah Ismail and others as it has obtained all the official documents from Engro as well as the ministry?

7- What evidence of corruption NAB has received from ex-secretary petroleum Abid Saeed who turned approver against Shahid Khaqan Abbasi and others?

8- The NAB officials had summoned Engro’s Chairman Hussain Dawood on October 8, 2019. Whether he appeared before the NAB authorities or not? If he hasn’t appeared before why NAB did not arrest him like it did in the case of Shahid Khaqan Abbasi and Miftah Ismail?

9- The NAB in its charge sheet against Shahid Khaqan Abbasi alleged that he gave the contract to Engro on exorbitant rates. Whether has NAB found any conclusive evidence that LNG Terminal-1 contract was awarded on exorbitant rates?

10- The NAB in its charge sheet against Shahid Khaqan Abbasi alleged that due to undue favor, the national exchequer has to bear Rs1.54 billion loss as Engro has been given capacity charges even in its idle days. Did NAB find the actual loss incurred to the national exchequer due to capacity charges paid to Engro in the idle days? How many days does the terminal remain closed annually? If there is any clause in the agreement for annual maintenance of the terminal? If yes what does it say? Is it illegal? Do such clauses related to plant’s annual maintenance exists in other countries? Do such clauses also exist in the agreement between government of Pakistan and IPP? If yes then what is the quantum of loss incurred to the national exchequer when the IPPs remain closed?

11- What are the tolling rates of LNG Terminal-I for the year two and onward and what are the tolling rates of LNG terminals operating in other countries of this region?

12- Did NAB find any evidence of favours given to Engro? What does the contract’s terms and conditions reflect?

13- Did NAB find QED, a consultant appointed by USAID to be involved in any corruption or giving undue favors to Engro?

14- Why NAB is taking too much time to establish any wrongdoing in LNG import infrastructure?

15- Can NAB blame any private investor for participating in any government tender, even if government was wrong or had illegal motives?

16- Why is NAB not investigating LNG import agreement clauses with Qatar, as this was also negotiated entirely by SKA?

17- If Shahid Khaqan Abbasi, Miftah Ismail and other co-accused did corruption in the installing of the terminal then Engro Corp must have paid them off. Then why is the owner of Engro Hussain Dawood (cousin of Razak Dawood) not arrested or even questioned by NAB? Why no one from Engro’s Board is in jail or questioned? Even, Engro’s CEO at that time has not been interrogated. The only person arrested is the head of an Engro Vopack subsidiary that set up the terminal, ImranUl Haq. Can Imran a mere employee pay bribes to ministers as well as Shahid Khaqan Abbasi and Miftah with companies’ top management’s approval? If not then why is the top management of Engro not questioned or interrogated?

18- At least 10 members of the board including the MDs of SSGC, SNGPL, ISGS and Additional Secretaries of Finance and Petroleum & Natural Resources plus representatives of State Life and others voted for the proposal to allow management to negotiate setting up an LNG terminal. Why has NAB not arrested them or questioned them?

19- Miftah Ismail was one of these 10 members who voted. The entire negotiations were conducted by MD of Inter State Gas System (ISGS) and professional staff from SSGC plus USAID foreign consultants and lawyers from Liaqut Merchant & Associate. Miftah never once attended any negotiations meeting. Again when the negotiated agreement was brought to the board, the MDs of ISGS and SSGC recommended it as well as the consultants of QED group and Pakistani outside lawyers from Liaquat Merchants & Associates. The board approved the agreement. Instead of arresting the other board member, why NAB has arrested only Miftah and not the others?

20- Shahid Khaqan Abbasi is the fifth highest tax payer of the country whereas Miftah Ismail’s company Ismail Industries last year had sales of Rs30 billion, paid sales tax of Rs5 billion, made a profit of Rs1.5 billion and paid more than Rs500 million income tax. Has NAB found any evidence of corruption from these two politicians? If yes then how much money they received as a kickback from this contract?