OGDCL warned against deal with dubious firm

Company management under investigation for misappropriation.

ISLAMABAD:

The Oil and Gas Development Company Limited (OGDCL) is all set to ink a $200 million agreement today (Thursday) on Uch-2 project with a company whose top management is under investigation for misappropriation of funds.

Documents available with The Express Tribune reveal that the management of Enar Petrotech Services Private Limited has written to Prime Minister’s Adviser on Petroleum Dr Asim Hussain to intervene and stop the deal.

Three ex-management personnel of Enar Petrotech - Mahmood Ali Ahmed, Pervaiz Rizvi and Sajid Pervaiz - had formed a welfare organisation with the name of Enar Employees Trust (EET).

The trust started doing business in the name of Enar Petrotech and the money went straight to their pockets, officials say. Once the financial irregularities came to surface, the trust was tactfully changed to Energy Enterprise Trust and is now operating under the name of Energy Enterprise Associates (EEA).

In a letter addressed to the prime minister’s adviser, it has been highlighted by Enar management that the EEA management is operating its business using the address of Enar and disguising itself as a government-owned organisation, though EEA is a purely private company.

The private company has set up its office not only at the site of Enar Petrotech but the equipment to establish the office was also purchased by Enar, officials say.

It is learnt that the Ministry of Industries and Production had ordered a third-party audit of Enar Petrotech after receiving a number of complaints of misuse of power and financial embezzlement.

The audit report indicated misappropriation and irregularities worth billions of rupees by three former management persons.

It is also learnt that the National Assembly Standing Committee on Petroleum had directed OGDCL not to sign an agreement for Uch-2 project with anyone else except the strategic partners, including the Sui Northern Gas Pipelines Limited (SNGPL) and Enar Petrotech Services.

In the letter to the prime minister’s adviser, the Enar management has warned that it would not be responsible for any loss suffered by any party while undertaking business activities with EEA.

Published in The Express Tribune, May 5^th, 2011.