KARACHI: “This is with reference to the news item entitled ‘SSGCL - PSML sell off process hits snag’ that appeared in Business Recorder of 9th March. It is pertinent to set a record straight here on some of the issues mentioned in the news item.
“On February 16, 2022, the Finance Minister chaired a meeting related to the issue of NOC from SSGC in favor of Pakistan Steel Mills (PSML) during which it was directed to MD, SSGC to apprise the Board about the proposal regarding amendment of recovery suit by excluding the charge on the Core Operating Assets of PSML, ie., Plant and Machinery and land measuring 1,229 acres, which is intended to be transferred to the new entity, ie, Pak Steel Corp (Pvt) Ltd.
It is pertinent to mention here that the meeting was convened in a positive manner and MD, SSGC showed consideration towards the proposal shared in the meeting. It is therefore totally inappropriate to mention that MD, SSGC was snubbed by Finance Minister.
“Moreover, it is to clarify that SSGC has never demanded 8,000 acres of land. However, SSGC vide letter dated 14 February 2022 suggested MoF that Comfort Letter must include payment plan of LPS or the amount of LPS can be adjusted against the land owned by PSML. The issue of LPS, which is amounted to Rs. 48,356 million receivable from PSML as at 28 Feb 2022 is also an important part in the matter, which is being disputed by PSML and needed to be determined. LPS is also an integral part of the Letter of Comfort (LOC) and in the absence of its final determination, LOC cannot be treated as completed and accordingly SSGC Management or Board cannot make any decision about the issue.
“Since the matter of LPS is being disputed by PSML, so the matter was referred to the Ministry of Law and Justice for their opinion. Subsequent to the above-mentioned meeting, the Ministry of Law and Justice vide its letter dated March 1, 2022 stated that since the question of basis of calculation of LPS is part of a pending adjudication before the High Court of Sindh, hence, Ministry of Law and Justice cannot opine on such matter. The concerned journalist omitted this opinion completely.
“Subsequent to the opinion from Ministry of Law and Justice, since situation is unclear about LPS, so SSGC vide letter dated February 24, 2022 informed the Ministry of Energy-Petroleum Division that the only option to resolve the LPS issue is to hire a Third-party Chartered Accountant Firm with an agreed Terms of Reference (ToR) to determine the amount of LPS to be paid by PSML to the gas utility. SSGC also requested for guidance on the way forward in the matter.”
Copyright Business Recorder, 2022
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