ISLAMABAD: The Supreme Court on Wednesday declared the Liquified Petroleum Gas (LPG) agreement as gross violation of bidding process and set aside the Implementation Agreement between Sui Southern Gas Company Limited (SSGCL) and Jamshoro Joint Ventures Limited (JJVL).
The court also directed the Federal Investigation Agency (FIA) to hold an inquiry into the matter and submit its report within 30 days.
The apex court constituted a two-member committee, including M. H. Asif, former member Oil and Gas Regulatory Authority (OGRA), Shabbar Raza Zaidi, partner of M/s A.F. Ferguson and Co, Chartered Accountants, to calculate royalty payments and other issues.
Justice Jawwad S. Khawaja announced the 28-paged reserved judgment of the case regarding the LPG quota awarded to JJVL, an unlisted limited company, by the SSGCL on August 12, 2003.
It was observed, “The project was awarded by SSGCL in a highly non-transparent manner with the object of giving undue benefit to JJVL.”
The court declared the project unfair and unlawful in order to give benefit to JJVL at the cost of state and the people of Pakistan.
“The Implementation Agreement as executed between SSGCL and JJVL cannot be allowed to continue,” the judgment stated.
The two-member committee, constituted by the apex court, would calculate royalty payments on the basis of the Saudi Aramco reference price plus freight, for the full period during which the Implementation Agreement has been operational; this shall be done within 15 days from the date of this Order.
As far as directions to the FIA were concerned, the court ordered, “The FIA shall inquire into the matters, which have been noted and highlighted in this judgment and submit a report which shall identify all those who are responsible for the failings, including acts of criminal negligence, corruption, corrupt practices or other offences.”
The FIA has also been directed to “inquire into and investigate such other matters which may come to light from examination of any documents and record during the course of inquiry/investigation.”
The court directed the FIA to submit its report within 30 days.