LPG king fined millions

Iqbal Z Ahmed's company is found to have violated stipulated rules of fair play.

ISLAMABAD: A private company in which high-ranking Pakistan Peoples Party leaders as well as top civil and military officers have quotas and shares has been fined heavily by the Competition Commission of Pakistan, after the company was found to be involved in violating stipulated rules of fair play.

The Lahore-based company —Jamshoro Joint Venture Limited (JJVL) — is owned by LPG king Iqbal Z Ahmed. Moreover, the LPG Association of Pakistan (LPGAP), again run by Ahmed and his son Fasih Ahmed, has also been fined after being found involved in violating provisions of the Competition Commission of Pakistan.

The information about the fine on JJVL – whose owner is a known friend of former president Gen Pervez Musharraf, as well as of current President Asif Ali Zardari — was submitted in a written report laid before the National Assembly on Monday by Finance Minister Dr Hafeez Sheikh.

The debate on this information could not take place in the question hour because the session was adjourned after offering prayers for the departed soul of former president and sitting MNA Sardar Farooq Ahmed Khan Leghari.

The PPP leaders who have interests in JJVL include Aitzaz Ahsan, Jehangir Badar as well as estranged party members Dr Safdar Abbasi and Naheed Khan.

Apart from the PPP leaders, two former chairmen of the National Accountability Bureau, Lt-Gen (Retd) Munir Hafeez and Lt-Gen (Retd) Khalid Maqbool, former interior minister Gen (Retd) Moinuddin Haider and many other top military and civil officers close to Gen. Musharraf were given LPG quotas from JJVL by Ahmed, who was earlier picked up by NAB after the military coup of October 12, 1999, and put in jail on several charges.

Ahmed had also reportedly played an important role in the negotiations between Gen. Musharraf and Benazir Bhutto in London in 2007 because of his close relationship with the two camps. Before leaving for London after tendering his resignation, Gen.  Musharraf was given a farewell dinner in Lahore by Ahmed. It is said that he called the shots in the energy sector during Musharraf’s nine-year rule.

The information about JJVL facing a penalty for violating government policy on LPG business, wherein prices soar almost on a weekly basis, was placed before the house in reply to question by MNA Mrs Nisar Tanveer. The MNA asked the minister to tell the house whether a penalty had been imposed on mobile phone companies by the CCP for unauthorised price fixing. She also asked whether JJVL and the LPGAP were fined by the Commission, and, if so, whether the said amount had been deposited.  In his written reply, Dr Hafeez confirmed that JJVL was fined 3.5 percent of its last annual net turnover – Rs278million based on annual accounting statements for the year ending June 30, 2008, recording net turnover at Rs7.4 billion, while the LPGAP has been fined Rs40 million for violation of the provisions of the competition ordinance.

However, the minister for finance pointed out that the penalties had not been deposited as they had appealed against the orders of the commission, which are now pending before the Lahore High Court (LHC).

Regarding mobile phone companies, Sheikh said that, so far, no penalty has been imposed, as soon after the issuance of show cause notices, injunctive orders were obtained against the commission from the LHC.

Published in The Express Tribune, November 2^nd, 2010.