SNGPL clarifies Rs450m scam report

ISLAMABAD: The Sui Northern Gas Pipelines Limited has clarified a news report that was published in a section of press. The report was about a scam involving Rs450 million without obtaining the approval of Board of Directors has been unearthed

The clarification says, “Incorrect impression has been created that a procurement scam involving Rs450 million without obtaining the approval of Board of Directors has been unearthed. The information presented in the newspaper is incorrect and written totally out of context. An attempt has been made to cast doubt on transparent functioning of the company which is malafide. Again, the company view point has not been sought which is against the basis journalist norms

It is clarified that as part per standard SOP of corporate governance and in order to manage day to day operations of the organisations, financial and administrative authorities are delegated to the sub-committee of the Board of Directors (BOD). Similarly, various committees of the BOD are functioning at SNGPL as part of the code of corporate governance.

It is highlighted that the Finance and Procurement Committee (F&PC) of the Board of Directors (BOD) has been delegated the financial authority, pursuant to the 368th meeting of the BOD dated June 21, 2010, to approve all procurements above Rs140 million and up to Rs450 million. All purchase orders/contracts exceeding Rs450 million continue to be approved by the BOD.

It is important to note that minutes of all the committees including F&PC of the BOD are circulated to all members of the BOD formally at a regular frequency. These minutes elucidate the complete details of the purchase orders/works approved by F&PC committee. It is pertinent to mention that the F&PC always comprised of government nominees including participation from Ministry of Commerce and Ministry of Energy.

It is pertinent to mention that all procurements in SNGPL are always subject to strict compliance of PPRA and codal and legal formalities and are subject to numbers of audits including from Auditor General of Pakistan, independent internal audit and external audit by firm of Chartered Accountants of international repute. As regards the information of purchase orders placed during the last 10 years sought by the BOD, it will be presented in next BOD meeting.

As regards the so-called delay in provision of information by the Management it is clarified that no such delay has occurred. In fact, the fact-finding committee is yet to ask for any information with regard to alleged charges.

The Management of the Company has already committed in writing that any documents or information required will be made available in a prompt manner as and when solicited by the fact-finding sub-committee of the BOD.

Khalid Mustafa adds: It is quite surprising to see the clarification by SNGPL as this scribe has included in the story the version of Mr Mirza Mehmmod Ahmad in detail, one of the private directors in the company who is heading Finance and Procurement (F&P committee) since long. However, the issue was agitated in the meeting held on Saturday by one of the directors from government side.

The chairperson of the BoD was also present in the meeting and when the scam of procurements of items up to Rs450 million without BoD approval was raised in meeting by Mr Qazi Sajid, JS admin who also deals with all companies including Sui Northern and more importantly Chairperson did not say that F&P has been delegated powers to spend up to Rs450 million. According to spokesperson of petroleum division who is also director on behalf of government, BoD has only given delegated powers to MD to procure items the company needs up to some limit, but F&P committee did not have any kind of powers delegated by BoD. As far as the amount of Rs140 million is concerned, the said amount is given to M/s Minto & Mirza legal firm owned by Mr Mirza Mehmood Ahmad on legal services by gas companies, this scribe also included the version of Mr Ahmad.

As far as the issue of non-cooperation by management of Sui Northern is concerned, head of the fact finding committee Mr Muhammad Ayub Chadhry in the meeting raised this issue that company’s management did not share any recorded of wrong doings with the committee since it was constituted since April 11 and that is why on April 17, the committee wrote the letter to MD of Sui Northern seeking record and information on 15 points and till the meeting of BoD held on May 2, no record was provided which is why BoD directed the MD to provide all record on 15 points, the committee has asked for. In the meeting BoD has also extended the time for probe till May 18. So the clarification by the Sui Northern carries no weight at all and The News stands by the story.