Heavy Electrical Complex privatisation: Probe uncovers ‘bidder-PC nexus’ in email

Bidder discussed meeting between him, then PC chief and HEC transaction manager

ISLAMABAD:

Through an email the parliamentary probe into alleged wrongdoing in the privatisation of the Heavy Electrical Complex (HEC) has established the apparent nexus between a bidder and certain Privatisation Commission (PC) officials.

Pakistan Peoples Party Senator Saeed Ghani produced the email – sent by Sabur Rehman, the adviser of Cargill Holdings Limited, on September 18 to then PC director general Anwar Malik – in the meeting of the Senate Standing Committee on Finance on Thursday.





The message gives some insight into the relationship between PC officials and the bidder, particularly when the deal had already been cancelled and the bidder was in court. The PC has already surrendered Malik to his parent department and is of the view that no individual official can influence the privatisation process.

In the email, Sabour discussed a meeting that took place between him, Malik and HEC transaction manager Azeem Hayee on the request of PC officials. The meeting took place around the time the Senate panel on finance was investigating the HEC deal.

In a negotiated sale, the government had agreed to sell the HEC at a meagre price of Rs250 million to Sabour’s firm, Cargill Holdings Limited. However, the deal was cancelled after the bidder could not honour his Rs225 million cheque.



The bidder also cc’d the mail to PC Chairman Mohammad Zubair and Ahmad Nawaz Sukhera, the secretary-in-charge of the commission.

“The email is evidence that the transaction was not transparent,” Senator Ghani said while seeking an explanation from Zubair.

In reply, the PC chairman said he was unaware of any such email and would respond to the question after going through his record. “I receive about 275 emails every day and cannot answer about an email that I presumably received three months back,” he added.



The Senate panel made the email part of its record with its head Senator Kamil Ali Agha noting that, “the record of a meeting of the transaction committee showed that the general manager of HEC had raised the issue about the technical capabilities of the bidder, which was ignored by the PC.” He also called Cargill Holdings Limited a fake company.



The committee will meet again next month to probe the matter further.

Email transcript

“Dear Mr Anwar Malik, This is in reference [to] a meeting at your and Mr Azeem Hye’s request on the 8th of September at Islamabad Club, Islamabad at 5pm. You and Azeem requested me to give an advertisement in the newspapers clarifying the Cargill Holdings registration and clarifying the amount at which it was sold and the issue of liability, and [that] it [the clarification] should definitely come in the newspaper by Monday the 14th of September for the next Senate hearing on the 14th of September at 1pm in which the Privatisation Commission has been asked to attend and answer questions.

“I requested you to give it in writing but you said that you need this favour, upon which I said I have done a lot now [and] anything I will do [from now on], I need it in writing or I will take legal advice and then do you this favour.

“Upon my asking that what is the urgency, your reply was that there was a hearing today and [that] they had grilled you people. I clearly told you that for this there was already a clarification in the newspapers. A copy of the ad was given to you as well as the letter sent by our lawyers. But you insisted that I should give another ad in the newspapers. Please note that you kept on calling to check this everyday and on the 14th of September at 9:25am Mr Azeem Hye called to confirm about the ad. I confirmed it to him that he can read it in the Business Recorder of today the 14th of Sept [and that] it is there on page three”.

Published in The Express Tribune, December 18^th,  2015.