LNG scam: NAB turns its guns on ex-PM Khaqan Abbasi’s son

ISLAMABAD: The investigation into a multi-billion-rupee case linking to the award of a liquefied natural gas (LNG) import contract took a new turn after the National Accountability Bureau (NAB) turned its guns to Abdullah Abbasi, son of former premier Shahid Khaqan Abbasi.

The Bureau, in its first-ever investigation report, made shocking claims about hundreds of transactions, worth billions of rupees through companies’ accounts either owned by Shahid Khaqan Abbasi or his son Abdullah Abbasi or his relatives who have now come under intense scrutiny.

"The major flow of Rs1.2 billion showed in three accounts of Abdullah Abbasi in the past five years. Five accounts of [dummy] companies, Travel Routers (owned by Abdullah Abbasi/Saud Abbasi), Blue Water (owned by Abdullah Abbasi/Momin Ali Khan) and Pewar Builders (owned by Abdullah Abbasi) are also being analysed where Rs242 million were traced out while NAB report claimed that Abdullah Abbasi has had no independent source of income," revealed the investigation report, exclusively obtained by The News. "Out of total debit of Rs1.6 billion, a voluminous sum of Rs1.1 billion was withdrawn by Abdullah Abbasi between 2015 to 2019," revealed the report.

The development came days after former premier Abbasi applied for bail in Islamabad High Court, at a time when new amended NAB Ordinance came into force officially. The NAB investigation team in its findings submitted before the accountability court, further revealed that ex-premier Abbasi through his family members and front men/dummy companies maintained accounts for parking ill-gotten money. "Shahid Khaqan Abbasi, his wife Sameena Shahid, his son Abdullah Abbasi, his brother-in-law Dr Jehanzaib Qureshi, his sister Saadia Abbasi and Abid Riaz received total credit/debit of Rs1.53 billion from Feb 2015 to Nov 2019. Total credit of Rs22.3 million was found in Shahid Khaqan's account 0010040799270012 in ABL branch Islamabad," revealed the investigation report. A sum of Rs306 million was seen in four accounts of ex-premier Abbasi's relatives namely Abid Riaz and Saadia Abbasi and Rs74 million were credited in the account of Dr Jehanzaib Qureshi, operated between 2011 to July 2019, claimed the report.

Forensic analysis of bank accounts of accused Shahid Khaqan Abbasi disclosed that he paid a sum of Rs3.4 million to The Airblue, an airline established (by Abbasi) in 2003, from August 2011 to May 2017. The analysis, which encircled thousands of transactions, further revealed that bank accounts of The Airblue are also in process of scrutiny as the record is voluminous, suggested findings of the investigation. Abdullah Abbasi, who was summoned thrice by NAB investigation team, denied the allegations adding that his wife, his brother and other family members were also summoned by the NAB team.

"Neither did I do any illegal business nor did I own any undeclared companies. Blue Waters and Travel Routers are declared in my tax returns with FBR, while the majority of the amount came from my father's accounts as a gift," Abdullah Abbasi told The News. He, however, did not explain why Pewar Builders was not registered with SECP or declared with FBR, saying, "the said company has little business." Details of all assets have been submitted with NAB which failed to trace any wrongdoings -- all of my family members summoned by NAB, which found nothing against us so far." He further said, "I got 10 percent shares in Airblue this year, rest of the shares belonged to other companies."

NAB has investigated around 400 transactions of Airblue and his family's accounts but found no irregularity, he added. Some of the accounts were mentioned about his father's sisters which he said were their inherited assets. "NAB got details of Rs1.1 billion in Abdullah Abbasi's accounts which (except around Rs30 million) according to Mr Abbasi was gifted by his father to him in the past five years. NAB is fishing for evidence against Abbasi family -- but it failed. We are always cooperative with investigators -- NAB may review its findings as this report has had no proof against my father (Shahid Khaqan)," he told this correspondent.

"A reasonable gap between demand and supply of gas existed in 2012/13 but no mechanism was adopted by the accused Shahid Khaqan Abbasi to quantify the same on tangible data. During the course of the investigation, I could not find single tangible evidence within the Petroleum Division or SSGCL or SNGPL except to a figure of 2 BCF or 4 BCF in draft summaries of the defunct MP and NR. No study was undertaken by the defunct Ministry of Petroleum regarding the gap in demand and supply of gas in various sectors. Allocations were made on surmises without any scrutiny of applications, supported with a firm back to back agreements on the downstream side before import of LNG/RLNG. An estimated requirement of 1200MMCFD was shown in papers only. On such basis flimsy requisitions, 691 allocations of gas were made by ex-premier Abbasi without tangible verification of the requisitions," claimed the investigation report. Ex-premier Abbasi, however, denied all the allegations and equally rebutted NAB's findings before the court.

"It is evident that the second LNG Terminal was hurriedly established because of devoid of any demand. The said need was converted into an opportunity for some white-collar criminals. Ex-premier Abbasi played efficiently for making allocations of gas on flimsy requisition without scientific quantification as the case of LNG Terminal-Exquisite example of 'white collars crime'," stated the report. Ignoring government's companies like SSGC LPG Terminal for Shahid Khaqan Abbasi and Miftah Ismail Ahmed, the accused failed to chalk out any plan or even utilise Rs246 billion of GIDC for its inherent purpose. Alleged loss is Rs21.6 billion which occurred illegal benefit to ETPL/EETPL from March, 2015 till Sept 2019 on account of exorbitant rentals, etc, revealed the report adding that Rs47 billion will be future illegal benefit from Oct 2019 till March 2029.

The investigation report further revealed that the State Bank of Pakistan in its confidential report handed over to NAB revealed an unusual transaction of Rs443 million from accounts of accused Miftah Ismail Ahmed. He, further investigation revealed, had got approved various power projects in name of his brother Maqsood Ismail Ahmed and the search of his accounts assets and offshore companies are in process and a supplementary reference will be filed soon.

Former MD Government Holding Pvt Ltd, Shahid Muzzafar, and his wife's accounts are also being scrutinised where Rs160 million were found in three different accounts including an account in Dubai Islamic Bank where Rs69 million were transferred abroad in June 2018, added the report. Accounts of Sheikh Imran-ul-Haq and his family members in other companies including Inbox Business Technologies Pvt Ltd and Asia Energy Pvt Ltd are being analysed where Rs1.7 billion were credited and debited between Dec 2016 to July 2019, revealed the report.

NAB’s investigation further revealed that "a voluminous transaction (credit/debit) of Rs1,517 billion has been made in 14 accounts of EETPL/ETPL from Jan 2014 to Nov 2019. A grant of a total of Rs1, 517 billion was credited in 14 accounts of EETPL/ETPL while Rs1,515 billion was the total debit from 2014-2019. There are 10 accounts of EETPL in MCB Bank whose total credits amount to Rs1464 billion while Rs1463 billion are total debits during the aforesaid period. There are two accounts of EETPL in Bank Al-Habib whose total credits are Rs30.4 billion while Rs30.3 billion are total debits from 2014 to 2019. There is one account of ETPL in MCB whose total credit amounts to Rs21.6 billion while Rs21.613 billion is the total debited from 2014 to 2019."

The Engro Elengy Terminal Pvt Ltd through account No 14759328 credited Rs688 billion in MCB Corporate Branch Karachi and then debited between Jan 2016 till Nov 2019, revealed the investigation. The account signatories are Aliudin, Naz Khan and Sheikh Imran-ul-Haque. The same company through MCB account 14759336 credited Rs668 billion and debited between June 2016 till Nov 2019 by aforesaid persons. Then the company through account 14769428 credited Rs290 billion operated by the same persons during the said time. Such transactions are also continued during the said period, revealed the report. The SSGCL record, according to report, showed that a total of Rs58 billion has been paid to EETPL from April 2015 till Sept 2109 in connection with various charges as per LSA in connection with LNG Terminal-I.

The investigation further revealed that the PEPRA rules were completely violated by engaging an easy to manage international consultant in the shape of QED Consultants through USAID. No proper TORs were made for M/s QED consultant regarding the evaluation of bids for the establishment of Terminal-I. No advertisement was given to international media, stated the report.