Wamiq Bokhari, MD PPL from March 2015 to June 2018, has been accused of breaking rules to favour a private contractor. His top lieutenant has now been arrested.
By Naveed Naqvi
ISLAMABAD: The Federal Investigation Agency (FIA) has arrested Pakistan Petroleum Limited (PPL) Deputy Managing Director Abid Malik and is conducting raids to arrest several others including a former managing director of the state-owned company on charges of bilking the company for millions of dollars, Independent Pakistan can report.
According to case documents reviewed by Independent Pakistan, Wamiq Bokhari, a former Managing Director of PPL, allegedly granted undue favours to a contractor in violation of public sector procurement rules.
Federal investigators say the criminal scheme involved 14 officers including Bokhari, and inflicted heavy damage not only to the company but also to the national exchequer by delaying the completion of an LPG extraction plant by several years, forcing the country to import fossil fuels at exorbitant prices.
The allegations surfaced as federal investigators probed enquiry No. 31/218, instituted to investigate a complaint lodged by a middle manager at PPL’s Hala Gas Processing Plant at Hala in Sindh against Syed Wamiq Bukhari and others, official sources have confirmed to this scribe.
Investigators say they have uncovered evidence showing Bokhari extended undue favours to certain contractors in violation PPRA Rules 2004 and at the expense of PPL. The favours include “over and above payments” for the equipment supplied and work completed.
Wamiq Bokhari was a top-flight private-sector executive when he was brought in to head PPL in March 2015. He served in the post until June 2018.
Allegations against him relate to the establishment of 60mmcdd Gas Processing Plant on an EPCC basis in April 2015 after a new oil and gas discovery at PPL’s Gambat South Block. A feed study by m/s SMEC Oil & Gas (Pvt.) Ltd., estimated cost of the project, Gas Processing Facility III, on EPCC basis at USD 130 million.
Investigators say they have evidence that a Project Evaluation and Approval process form processed in-house at PPL on September 30, 2015 put the estimate at USD 70 million or less.
They claim it has been established on the course of the enquiry that this exorbitant cost for GPF-III was proposed as a result of dishonest collusion between the private contractor and the PPL MD. The quantum of alleged pilferage has been estimated to about USD 60 million.
Per the investigators, paper trail also reveals that technical evaluation criteria of GFP-III was relaxed by dropping the establishment of an LPG extraction unit the scope of work for GPF-III, considered integral to the project and originally part of it.
SPEC Energy, the contractor receiving these favours, had its bid for GPF-II rejected, on account of its lack of experience of LPG extraction, the other reasons. This indicates the change introduced to the scope of work for GPF-III was meant to favour SPEC Energy.
A pioneer in the natural gas industry in the country, Pakistan Petroleum Limited (PPL) has been a frontline player in the energy sector since the mid-1950s. Its Managing Director reports to the Petroleum Secretary of Pakistan.
As a major supplier of natural gas, PPL today contributes around 20 percent of the country’s total natural gas supplies besides producing crude oil, Natural Gas Liquids (NFL) and Liquefied Petroleum Gas (LPG).
Owned 70 percent by the government of Pakistan, the company operates 13 production fields including in Sui, Kandhot, Adhi, Mazarani, Chachar, Adam, Adam West Shahdadpur, Shahdadpur West, Shahdadpur East, Fazal, and, Dhok Sultan – the first two wholly owned by it.
In addition, PPL has working interest in 23 partner-operated producing assets.
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