MD PSO’s name put on ECL

Islamabad : As the PML-N government’s tenure is being completed at mid of tonight, National Accountability Bureau (NAB) on Wednesday put the name of Sheikh Imranul Haq, Managing Director (MD) of state owned Pakistan State Oil (PSO) in the Exit Control List (ECL) on charges of inflicting loss of $172.5 million onto PSO in the shape of demurrages paid to the vessels of furnace oil or other POL products for being berthed for months.

Before joining as MD of PSO, Haq was CEO of Engro Vopak Terminal Limited and Elengy Terminal Pakistan Limited which established the first LNG terminal. He was brought as MD PSO by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.

His name was also involved in the NAB’s inquiry report completed in 2015 saying the multi-billion dollars LNG terminal contract was awarded to ETPL (Elengy Terminal Pakistan Limited) of Engro Pakistan based favours and no high measure of transparency, diligence and fair play has been ensured causing loss of about $2 billion (over Rs200b) to national exchequer. The News published in its edition of 19, 2015 the story based on NAB’s inquiry report about awarding the contract for setting up LNG terminal to ETPL.

In its recommendations, NAB Karachi had sought the approval from NAB chairman for formal inquiry into the LNG terminal contract as in the preliminary inquiry, Federal Minister for Petroleum and Natural Resources (Now PM) Shahid Khaqan Abbasi, ex-federal secretary Abid Saeed, Managing Director of Inter State Gas System (ISGS) Mobine Saulat, ex-CEO of M/s Engro (Pvt) Limited Emranul Haq Sheikh and ex-MDs of SSGC, Zuhair Siddiqui and Shoaib Ahmad Warsi have been actively involved in award of questionable contract and LSA (LNG services agreement).

Top sources say that Imranul Haq has apparently been placed in ECL on corrupt practices in PSO, but factually he will later be probed into LNG terminal awarding contract. And if he is probed in this issue, then tentacles of investigation will also touch Prime Minister Shahid Khaqan Abbasi for $2 billion loss to national kitty in the award of the questionable contract. It is pertinent to mention that SC has already asked NAB to initiate probe into the said LNG terminal contract.

However, according to the letter dated May 30, 2018, addressed to DG operations NAB Karachi, of which the copy is also in possession of The News, the name of existing PSO MD has been placed in ECL by authorities concerned in NAB, Karachi on criminal and corruption charges and misuse of authority also when media starts giving the news that Haq’s chances to escape are higher after he applied for leave after June 1, 2018.

However, Sheikh Imranul Haq told ‘The News’ that the inquiry report mentioned in the letter is based not on facts, adding that may be it is the product of misunderstanding of NAB officials as during the interaction with them for the last one and half years, NAB’s team was well briefed on all issues and no one was found in any illegal activity in the PSO.

Haq said that he told them [NAB officials] the whole process of import of POL and furnace oil products. He said for the last many years, a charter agreement between PSO and PNSC inked under the umbrella of ECC decision, is operational. Under that particular agreement the PNSC brings through its ships the furnace oil on F&B mode and other products in C&F mode. It is bitter fact PSO sustains the loss as under FoB mode the entity is responsible for many things. So this practice is still continuing for the last two years and to change the import mode, PSO has agitated the issue at higher levels and some two days back the ECC has approved it and its finalised minutes are yet to come. “We had asked the ECC to change the import mode on to C&F basis as existing one is detrimental to PSO’s financial health.” This all things have also been communicated to NAB investigating officials.

And coming to the demurrages issue, Haq said that the PSO is not responsible for it arguing that it is the power division which places the order for import of furnace oil. And how the PSO can be at wrong when it imports FO on the orders placed by Power Division knowingly the order is more than the need of the power sector and if vessels containing the surplus FO remains in the open sea knowing the fact that consumption of the fuel is not at higher side and there is no place to get the ships berthed at FOTCO jetty as order of the vessels are always in more numbers than the demand. FOTCO handles 15 ships a day and out of 15 if ships of furnace oil stand at 10, then some would have to stay in open sea. Per day the PSO has to pay demerges of $15,000 and it can be avoided if Power Division place the precise and calculated order of the furnace oil not more than the demand. So all issues, the PSO kept on agitating not only with higher authorities in Islamabad, but also with NAB officials.

“And if NAB still concludes that the sitting PSO MD is responsible of $172.5 million loss to the national kitty, then it’s beyond my comprehension,” said Haq adding, “The contents of the preliminary inquiry are unjustified and extremely questionable.”