LPG Import Scam: FIA Probes SSGC Management and Officials
By Newztodays Team
The Federal Investigation Agency (FIA) has launched an inquiry into an LPG import scam against management and officials of Sui Southern Gas Company (SSGC) and its LPG subsidiary company.
The officials of state-owned companies are accused of orchestrating a scheme to hinder domestically produced LPG from importing LPG, leading to multibillion-dollar losses to the national economy.
The FIA has directed the Oil and Gas Regulatory Authority (Ogra) and SSGCL to provide all records.
In a letter to SSGC, the FIA Corporate Crime Circle Karachi stated that an inquiry is underway regarding allegations of corruption against Sui Southern Gas Company Ltd (SSGCL) employees, SSGC LPG Ltd (‘SSL’ – a subsidiary of SSGCL) management, and others who, in connivance with each other, have orchestrated a scheme to hinder domestically produced Liquefied Petroleum Gas (LPG), forcing stakeholders to import LPG.
This has caused direct and indirect losses amounting to billions of rupees to the national economy. It has been alleged that these illegal acts have led to a steep rise in LPG rates, directly affecting the poorest quintile of the population.
The FIA has directed that records be provided by February 16, 2024. It has asked for copies of all agreements executed between Jamshoro Joint Venture Limited (JJVL) and SSGCL from time to time.
FIA has also called for providing attested copies of Board Resolutions and minutes of meetings (including names and positions of attendees) about the Board of Directors (BOD) wherein SSGCL decided to stop gas supply to JJVL.
It further directed to provide details of imports made by SSGC LPG Ltd from 2019 to date, including names, addresses, and details of local representatives of the foreign suppliers of LPG, Date of GD, Tonnage, Importer (name & address), Exporter (name & address), Carrier (name & flag), Shipment No. of LPG Bill (US$).
The FIA sought details of the procedure adopted for onboarding LPG suppliers and methods adopted for determining the ‘most advantageous bidder’ and procedures adopted for disposing of LPG to local buyers, along with details of such buyers and the amount of LPG sold to each buyer.
It also requested the nomination of an official of SSGCL as a focal person under section 25(1) of the Anti-Money Laundering Act 2010, in the subject inquiry for expert opinion and assistance from the agency in the early finalization of the inquiry.
The aforementioned records shall be provided by the designated focal person of SSGCL at the office of FIA Corporate Crime Circle Karachi.
In another letter sent to Ogra, the FIA asked for a list of all local E & P Companies producing LPG with details of the production of each producer, Name of Approximate Petroleum Levy Producing Entity Production of LPG Collected from Producer from 2020 till date.
FIA has also requested a list of all non-E&P & P Companies producing LPG with details of the production of each producer, maximum LPG price levels regulated at each stage of the supply chain, and a list of LPG marketing/importers licensed issued by OGRA. JJVL’s closure becomes a blessing for LPG Importers who pocket billions
It also sought details of imports made by each OGRA licensed importer and Year-wise imports of LPG from 2019 to 2023. It sought copies of agreement(s) executed between Jamshoro Joint Venture Limited [‘JJVL’] and SLL from time to time.
“You are further requested [under section 25(1) of the Anti-Money Laundering Act 2010] to nominate a representative of OGRA as a focal person in the subject inquiry for expert opinion and assistance of this agency in early finalization of the inquiry,” FIA said.
