Reko Diq case: ‘Why were rules bypassed in issuing licence?’

SC asks Balochistan govt to explain lax in implementation of rules in contract award.

ISLAMABAD:

The Supreme Court on Monday once again directed the Balochistan government to assign reasons for relaxing mining rules to award the contract for the Reko Diq mines to a foreign company.

A three-member bench head­ed by Chief Justice Iftikhar Muhammad Chaudhry remarked during the course of hearing that foreign investment is to be encouraged without compromising the law of the land. The government of Balochistan circumvented rules and regulations when awarding the contract to BHP-Billiton for mining.

Khalid Anwar, counsel for the Tethyan Copper Company, submitted that BHP-Billiton followed the rules and regulations in place at the time and the licence was issued in consonance with the law.

“Such agreements were discouraged by the 1970 mining rules,” the chief justice observed. “BHP-Billiton certainly benefitted from the transaction when they sold their licence to TCC and purchased shares. The court has to view the case in accordance with the law and the Constitution.”

The court adjourned the hearing till Tuesday (today) and directed the Advocate General Balochistan to explain why the rules were circumvented and to provide a copy of the memorandum signed between BHP-Billiton and the Balochistan Development Authority.

Published in The Express Tribune, March 8^th, 2011.