The government on Wednesday informed the Supreme Court that it would delay signing of liquefied natural gas (LNG) deal with French company GDF Suez for the import of liquefied natural gas till the apex court verdict. "No contract will be signed until the matter is disposed of by the apex court," SM Zafar, a lawyer for the Petroleum Ministry, told the court.
The contract was due to be signed today (Thursday). A three-member bench of Supreme Court headed by Chief Justice Iftikhar Muhammad Chaudhry, Justice Chaudhry Ijaz Ahmad and Justice Ghulam Rabbani heard the case and called the original record of the Economic Co-ordination Committee (ECC) of Cabinet, pertaining to the award of LNG contract to a French company.
The Supreme Court step followed media reports that the country had lost $1 billion when the senior officials of the petroleum ministry ignored the lowest bid by Fauji Foundation and European company Vitol, for a 3.5 million-tonnes-a-year contract.
The report says the senior officials of the ministry of petroleum and natural resources awarded the $25 billion contract to the highest bidder, ignoring the lowest bid jointly offered by Fauji Foundation and Vitol. Former finance minister Shaukat Tarin had also admitted before the Supreme Court that there was a "clear process lapse" in the award of LNG contract to French firm GDF Suez.
Expressing his displeasure over not providing the record to the court, Chief Justice Iftikhar Muhammad Chaudhry directed the cabinet secretary to submit original record of the Cabinet''s Economic Co-ordination Committee regarding the contract.
He observed that the national wealth would not be allowed to be wasted. "This is the money of the nation and transparency must be ensured in such steps," he added. Muhammad Naeem Sharafat of Sui Southern Gas told the court that the company did not intentionally dropped the Fauji Foundation from the bidding while awarding the LNG contract.
He argued that Fauji Foundation was not considered in the first bidding as it backed out of Mashal LNG project but later entered the second bidding with interest in supply and terminal project. However, he disclosed that the contract for LNG import was awarded to a French company GDF Suez on the directives of former petroleum advisor Dr Asim Hussain. The court then directed recording of his statement and ordered him to sign the transcribed statement.
The court also directed the Chairman of Sui Southern Gas to file a separate reply in the case. Kamran Lashari, Secretary Petroleum, informed the court that he assumed the charge of the ministry two months ago, after the contract deal, thus had not handled the issue.
Abdul Hafeez Pirzada, counsel for the French company, told the court that his client has extended the period of its offer for import of LNG till April 30. The court directed the Special Secretary of Petroleum Ministry GA Sabri to appear in person on next hearing of the case for assistance.
Fauji Foundation managing director Lieutenant General Hamid Rab Nawaz (Retd) explaining his position said that Fauji Foundation backed out of Mashal LNG project on two reasons - one the government could not provide guarantee of the project and other the price of the project was too high. He added that after some negotiations, the government had agreed to award the project to Fauji Foundation but later it backed out of it.
Finance Secretary Salman Siddique also appeared before the court. The court directed him to appear in person on next hearing to assist the court and adjourned the hearing till April 21. Senior journalist Rauf Klasra who unveiled the scandal was also present in the court.
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