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This is apropos a news item carried by Business Recorder on July 22, 2019. "Certain statements made by the reporters in relation to Ogra need to be corrected to set the record straight. "A statement has been made that pre-determined and deliberate extensive and rapid increase in tariff of locally produced gas was made to justify the import of LNG from April 2014 till September 2017. Ogra, after an extensive procedure of public hearings, determines the prescribed price per MMBTU for the Sui Companies as part of its annual revenue requirement and sends the same to the Federal Government for determining the Sales Price of Gas per MMBTU under Section 8 (3) of Ogra Ordinance 2002. The Federal Government decides the sales price for various categories of consumers and advises Ogra to notify the same.
"In fact, the Federal Government did not pass on the total Revenue Requirement of the Sui Companies on to the various categories of consumers hence resulting in a shortfall in the Revenue Requirement which has to be recouped in coming years. The decisions of Ogra for the year 2014-2017 are on its website along with the price notifications for these years which clearly show the shortfall in prescribed prices not passed on by the Federal Government in the form of increase in Sales Price.
"As regards the illegal appointment of incumbent Chairperson Ogra, Section 5 (2) and (3) of Ogra Ordinance 2002 stipulates: "(2) No person shall be appointed by the Federal Government as a Member if he has any direct or indirect financial interest in, or has any connection which might reasonably be viewed as giving rise to a conflict of interest with any person involved in any regulated activity. No person appointed as a Member shall during his term in office have or maintain any direct or indirect financial interest in any person involved in any regulated activity. Members shall not at any time during their term of office engage themselves in any other services, business, vocation or employment with any other person.
(3) No Member shall take part in any decision, if such Member is in any way, whether directly or indirectly concerned or interested in the decision, nor shall such member's presence count for the purpose of forming a quorum at the time of any such decision."
"The appointment of the incumbent Chairperson was recommended by a senior-most 5 Members Committee who shortlisted, interviewed and recommended a panel of 3 candidates for final selection by the then Prime Minister of Pakistan, in response to an advertisement published in the newspapers on January 16, 2016, after completing all codal formalities and ensuring that the advertised criteria was fully met.
"The appointment of Aamer Naseem, Member (Gas), Ogra, was made in a similar manner. "It is pertinent to mention here since inception of Ogra in 2002, four other Members of the Authority, including the founding Chairman, have held positions in either of the two Sui companies and never before has such appointment been termed as illegal.
"The issue of conflict of interest of Uzma Adil Khan and Mr. Aamir Naseem has also been settled by the Law & Justice Division who held that the issue of conflict of interest is relatable during the term of office. In their view, holding of office in SNGPL prior to appointment in Ogra does not raise the issue of conflict of interest as the connection is severed after retirement from the position held in SNGPL. "It is evident that claims of illegal appointment/ conflict of interest are only being made to malign the Ogra authority by certain misleading elements with nefarious plans."

Copyright Business Recorder, 2015

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