Conflict of interest: TIP opposes interim petroleum minister

Says PSO chairman may cover up his alleged illegal acts like awarding contracts without tenders.

KARACHI:

Transparency International Pakistan (TIP) has objected to the appointment of the caretaker Minister for Petroleum Sohail Wajahat Siddiqui due to his alleged illegal acts as the Chairman of Pakistan State Oil’s Board of Management.

The whistle-blower against corruption in its letter to the interim Prime Minister Mir Hazar Khan Khoso said that caretaker ministers were supposed to be honest and persons of high integrity.

However, the past record of caretaker minister for petroleum shows that as chairman of PSO he caused billions of rupees worth of loss to the national exchequer by awarding contracts without tenders and acquiring perks beyond permissible limit.

TIP requested Prime Minister Khoso to take notice of the allegations against Siddiqui, as his role as minister for the same ministry where he is said to have acted illegally is a blatant conflict of interest and he may misuse this office to suppress his alleged criminal acts.

Contracts without tenders

TIP reminded the caretaker PM that the court did not even spare former prime minister Pervaiz Ashraf for awarding contracts without tenders.

The Islamabad High Court has declared illegal the award of two road construction projects to National Logistic Cell (NLC) by former prime minister Pervaiz Ashraf in his constituency.

TIP said that under Siddiqui, PSO awarded two unsolicited contracts, the Contract of Affreightment (COA) to Pakistan National Shipping Corporation, and the $5 billion 5-year contract to Bakri Trading for blended oil supply and fuel additives. Both of these contracts were against the Public Procurement Rules 2004.

Perks beyond limit

TIP said that the caretaker minister of petroleum as chairman PSO acquired perks from the company that were challenged by the Auditor General of Pakistan.

The audit report submitted by the director commercial audit on 19 November 2012, reports irregularities by the PSO chairman.

The irregular award of perks and privileges to the Chairman Board of Management has caused a loss of 2.492 million, TIP quoted the audit report.

TIP further said that a minster in caretaker setup is supposed to be fair, impartial, honest and of integrity. Anyone who has committed violation of laws should not be deemed fit for the post of a caretaker minister.

Published in The Express Tribune, April 11^th, 2013.