Ministry of Petroleum is using a huge portion of the money – allocated for training of its employees – to pay off lawyers, who are defending the government of Pakistan’s stance in the International Court of Arbitration (ICA).
The government is facing litigation in the ICA, where the shareholders of an LPG firm Progas Pakistan Limited have moved a petition, claiming damages of US$ 573 million. The shareholders allege that the government’s policies led the company to default and to wind up its business.
The federal government has hired the services of a London-based legal firm M/s Allen & Overy to plead the case in the court. The hearing of the case will resume in the month of February.
According to official documents available with The Express Tribune, the ministry of petroleum has released $24,700 to its two local lawyers – Miangul Hassan Auragzaib and Bismillah Rai – who travelled to the United Kingdom to hold meeting with foreign lawyers to prepare a response to the rejoinder.
The document said the entire above-mentioned amount has been paid from the training fund, which is only used for capacity building of the ministry’s employees.
A senior official said this fund has also been misused by the top brass of the ministry on foreign trips, adding that instead of withdrawing money from the training fund, the government should give supplementary grant for the purpose of giving fees to the lawyers.
Talking to The Express Tribune, Advocate Miangul Hassan Auragzaib said the lawyers have asked the ministry to sort out this issue because due to their mistakes, the lawyers are being defamed.
He said the government of Pakistan has a very strong case in International Court of Arbitration.
According to official documents, the government of Pakistan on January 31, 2014 transferred an amount of GBP 21,04, 216 to a legal firm – M/s Allen & Overy. An additional amount of $38, 423 was also released from the fund to the firm on June 24, 2014.
As per the contract executed between M/s Allen & Overy and the government, the said firm is to be paid net amount as invoiced by them in full. Hence, they are not liable to pay income withholding tax.
Officials said Progas’ shareholders claimed that they had established the LPG Import Terminal at Port Qasim and had also invested heavy amount in the LPG business on the assurances given by various government authorities that the prices of LPG would be deregulated.
“However, the government of Pakistan did not keep its promise/assurances and Ministry of Petroleum as well as Oil and Gas Regulatory Authority started interferences in the LPG pricing, which rendered Progas Pakistan Limited unable to carry on its business in the profitable manner and finally it was forced to sell its assets/terminal on a fraction of price,” the shareholders said in their petition.
Invoking the provisions of bilateral government treaty between Mauritius and Pakistan, the shareholders initiated proceedings, inter-alia, on the main ground that policies/actions of government of Pakistan amounted to expropriation of investments and assets in Pakistan.
Published in The Express Tribune, December 21st, 2014.
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