Uch gas compression project: FIA summons SNGPL top officials to probe Rs135m loss

ISLAMABAD: The Federal Investigation Agency (FIA), Lahore has summoned some of the top officials of the Sui Northern Gas Pipelines Limited (SNGPL) on Monday for a probe into the loss of Rs135 million to the gas company in the Uch gas field compression project.

The SNGPL confirmed the development, saying that some of the top officials have been summoned by the FIA and the issue is being dealt with by the management on the legal level.

The Uch gas field compression project was initiated by the OGDCL to maintain the flow of low-BTU gas in the Uch gas field that has gone down. The SNGPL was a partner in a joint venture with Presson Descon International Limited (PDIL) that had won the contract for the Uch field gas compression project.

According to the letter from FIA, the Corporate Crime Circle wrote a letter on August 2, 2023, to the chief financial officer of Sui Northern to appear before the authorities of FIA on Monday (August 07) for a probe into the loss of Rs135 million to the Sui Northern being the relevant top official. Such a letter was also sent to the Senior General Manager of the gas company, Imran Yousaf, the then-project director of the Uch gas field compression project for probe purposes.

The FIA has been probing the allegations of criminal breach of trust, embezzlement, corruption and corrupt practices allegedly committed by Ali Javed Hamdani, the then managing director of the SNGPL.

The letter further says that the alleged person caused Rs135 million loss to the SNGPL in Uch compression project without the approval of a competent forum by misusing his official position. Moreover, he was unauthorizedly using five vehicles without trackers and was also involved in the withdrawal of excess/exorbitant salary with the collusion of BoD.

According to the letter, during the inquiry proceeding, it has come to light that Faisal Iqbal held the position of chief financial officer during the project’s proposal and issuance of bid bond in the “Uch gas field compression project”. In order to conclude the ongoing inquiry, the CFO is directed to appear in person on Monday in the FIA office, the letter said.

The letter further said the CFO has also been asked to bring original CNIC and all documentary evidence with regard to the Uch gas field compression project. “Non-compliance of this order for attendance and/or non-production of documents will render you liable to the proceedings under section 174, 175 PPC, 1860 in the court of law,” the letter to CFO said. Sources close to CFO Faisal deny any wrongdoing on his part.

The Rs135 million loss is incurred on the Sui Northern for not depositing the performance guarantee of Rs1 billion to Presson Descon International Limited (PDIL) for $82.3 million Uch gas field compression project.

There was a joint venture of the Sui Northern and Presson Descon International Limited (PDIL) that had won the contract for the Uch field gas compression project. Presson Descon International had enchased the bid bond of Sui Northern worth Rs135 million on March 3, 2023 over the failure of depositing the performance guarantee of Rs1 billion.

The Board of Directors (BoD) suspended its MD Ali Javed Hamdani on February 18 over charges, including the signing of joint venture with PDIL for Uch gas filed compression project without the approval of the board.

According to the official document, the SNGPL was to earn $2 million after the investment of $39 million in the Uch field compression project. The share of PDIL was at $43.3 million. The suspended MD, under the rules, had the financial powers to ink the project worth Rs140 million for local and $5 million for imports. However, $39 million’s share and its financing fall under the powers of the Board of Directors, which the suspended MD had not taken the approval from the board,” the spokesman of the gas company said.

However, Hamdani said that he had informed the BoD about the investment of $39 million in the project and had got the green signal for taking part in the Uch gas field compression project.

About the ongoing probe by the FIA, he said that it is a welcoming initiative to probe into the loss of Rs135 million, adding that the Uch field compression project was a profitable project, but he was suspended by the BoD for its mala fide intentions and this inflicted a loss of Rs135 million.