SC issues notice to NAB in Shell case

Orders trial court not to issue its verdict in a case related to allegedly illegal sale of jet fuel

ISLAMABAD:

The Supreme Court has issued notice to the National Accountability Bureau (NAB) over a petition filed by Shell Petroleum and ordered an accountability court in Karachi not to issue its verdict on a NAB reference that accuses the multinational company of illegal sale of jet fuel.

A three-member bench, comprising Justice Umar Ata Bandial, Justice Sajjad Ali Shah and Justice Yahya Afridi, on Wednesday took up the Shell’s petition, requesting the top court to quash the NAB reference.

Makhdoom Ali Khan, representing Shell, argued that his clients were unnecessarily dragged into criminal proceedings for selling jet fuel to a company, Aero Lube.  According to the NAB, he said, jet fuel could only be sold to the defence forces or aviation industry and Aero Lube was neither of them.

Khan, however, claimed that there is no law restricting the sale of jet fuel to only the two sectors. “The rules of 1971 as well as 2016 rules framed by the federal government put no embargo on such sales.”

He said this issue was also raised before the Sindh High Court (SHC) but the high court did not deal with it at all. The counsel claimed that NAB initiated proceedings against Shell at the request of the Pakistan State Oil (PSO), which is a competitor of Shell Petroleum.

“NAB, however, completely ignored the fact that the PSO was also selling jet fuel to Aero Lube.”

He said both the Ministry of Petroleum and the Oil and Gas Regulatory Authority (Ogra) had confirmed in writing that Shell Petroleum was not prohibited by any law from making such sales. He said there is not even an allegation that the accused reaped personal benefits in the process or had any criminal intent.

“There was no loss of any revenue or taxes. In spite of repeated disclosures by Shell to all concerned including the ministries involved, no issue was raised by the Federal Board of Revenue (FBR),” the counsel said. The bench while issuing a notice to NAB adjourned hearing for two weeks.