Illegal grant of LPG quotas from Dhodak field: Petroleum ministry to approach NAB for resuming cases

05 Feb, 2010

Ministry of Petroleum has decided to approach National Accountability Bureau (NAB) to resume cases for which references had already been filed in NAB regarding illegal grant of LPG quotas from Dhodak field after Supreme Court's decision on National Reconciliation Order (NRO).
According to a report submitted to the sub-body of National Assembly's standing committee on Petroleum and Natural Resources, the cases of misuse of authority in allocation of LPG quota Ex-Dhodak, illegal appointments and charges on four further counts of corruption and corrupt practices, misuse of official aircraft, and causing losses to the exchequer against an ex-Minister were at appeal stage in Rawalpindi Court. However all were dismissed under the section 33 of the NRO on May 7, 2008.
The report revealed that in April 1994, the then Minister for Petroleum and Natural Resources Anwar Saifullah Khan had reallocated the LPG production from Dhodak field to six LPG companies that are; M/s Wak Gas (50 Metric tons per day, M/s Lub Gas (25 MTD), M/s Eirad Co (50 MTD), M/s Ranja Enterprises (20 MTD), M/s Balochistan Gas (20 MTD) and M/s Mehran Gas Co (25 MTD).
In case of grant of LPG quota to these private sector companies, NAB had filed two references of irregularities vide their Reference No 3/2000 and Reference No 7/2000, 'State vs Anwar Saifullah Khan' in respect of allocations granted to M/s Mehran Gas and M/s Balochistan Gas, in the National Accountability Court, Rawalpindi.
NAB also penalised six private sector companies viz: M/s Lub Gas, M/s (Mehran Gas, M/s Wak Limited, M/s Ranja Enterprises, M/s Balochistan Gas and M/s Eirad Company, in view of illegal gain pocketed for a number of years since grant of allocation of LPG quota to them.
The companies were required to pay apart from total the amount equivalent to 15 percent per annum on unlawful gain accrued to them till the time of payment of illegal gain to NAB as stipulated in the agreement signed between them and the NAB to withdraw their cases in respect of Ex-Dhodak. The total amount was worked out around Rs 286.92 million.
Additional Secretary Petroleum Ijaz Chaudhry gave undertaking to Sub Committee of National Assembly Standing Committee on Petroleum and Natural Resources which met on Thursday. The sub committee directed to comply with the decision of the Supreme Court and initiate proceedings against those involved in irregularities regarding allocation of LPG quota.
"Petroleum Ministry will write to NAB to initiate proceeding on LGP quota and submit a report about it within seven days," additional secretary assured the sub-committee, which is investigating the issue of LPG quotas allotment and will submit its report to Parliament after completing findings.
According to documents, from April to October 1996, around 20 allocations were made by the ex-Minister for Petroleum Anwar Saifullah against future production of LPG, expected to come on stream at various fields under development between 1996 and 1998, namely: Kunnar (OGDCL), Bobi (OGDCL), Fimkassar (OGDCL), Missa Keswal (OGDCL), Garhi Hassu (OGDCL), Pindori (POL) etc.
The allocations made to companies are as under: M/s Bolan Gas (20 MTD Ex-Filmkassar), M/s Ali & Co (10 MTD Ex- Pindori), M/s Infinity Gas (20 MTD Ex-Garhi Hassu), M/s Khyber Gas (30MTD Ex- Garhi Hassu), M/s Raheel Traders (20 MTD Ex- Garhi Hassu), M/s Akbar Associates (20 MTD Ex- Missa Keswal), M/s Al Kausar Gas (05 MTD Ex- Missa Keswal), M/s Rifaz & Co (05 MTD Ex- Missa Keswal), M/s Good Gas (20 MTD Ex- Kunnar), M/s Sheikhu Gas (20 MTD Ex- Kunnar), M/s SSGCL (20 MTD Ex- Kunnar), M/s ELPE Gas (10 MTD Ex- Kunnar), M/s Wass Brothers (20 MTD Ex- Kunnar), M/s Ms Aamna Hayat (20 MTD Ex- Kunnar), M/s Green Gas (20 MTD Ex- Pindori), M/s ELPE Gas (10 MTD Ex- Bobi), M/s Lifeline (10 MTD Ex- Bobi), M/s Summit Gas (20 MTD Ex- Bobi), M/s Jamfar Gas (20 MTD Ex- Bobi) and M/s Resources Generation Int. (5 MTD Ex- Bobi).
After dismissal of the government in November 1996, the Cabinet on November 11, 1996 while considering the Summary on 'Allocation of LPG' cancelled all the LPG licenses granted on political basis or on extraneous considerations against the public interest.

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