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Archive for category BIGGEST ENERGY FRAUD IN PAKISTAN

Perception by Ayaz Fakir

 

 

 

 

 

 

 

 

 

 

 

Perception

 

by

Ayaz Fakir

 
 
 
 
 
 
 
 
Editor’s Note:
 
Pakistan’s Enemies may mis-read the Army’s bystander attitude towards Nawaz Sharif’s Tsunami of money laundering,transferring assets stolen from Pakistan to S.Arabia, UAE, UK, US, and EU.
 
 
 
 
The perception about the Army seems to have undergone a sea change in the last six months. From  revered saviours as they were seen by a huge majority, they are increasingly being viewed as “neutrals” as the state they are sworn to defend is being brought to its knees by just a few hundred people. And if things keep going the way they are, “neutral” will be the least offensive epithet to be slapped on the Army by the people of this country.
What if India attacks Pakistan today, and our Army adopts a position of neutrality? What should the Army be called then?? For what is happening today is unobstructed plunder of national wealth of a scale so frightening that the “enemy” will have done us in without the need to fire a single shot. And this corruption is surely reflected in our national debt whose figures cannot be denied, and which has put a lien on our sovereignty. How can the Army, the ultimate guardian of our state look impassively on, as the very foundations of the state are being eroded? What should the people, who sustain the Army, call such neutrality?
This is a strange scenario where the people who are destroying the country are hiding behind the Constitution, and where the Army which can bring about an end to this horror is also citing the same Constitution for its inaction and passivity.
Indeed, this was the very aim of this mangled Constitution i.e to give immunity to the robber barons of the land, while counting on the pusillanimity of those who lead its Army. This was the perfect legal recipe for the success of an operation designed to take down the state.
In states with a slightly higher quotient of patriotism, it is clearly understood that when it is a choice between the state and the constitution, it is for the state that a patriot stands. 
This is what Ataturk did not need being schooled about in 1919, while the German Generals of the Second World War needed to be schooled in a lot earlier than 20 July 1944.
When every solution for the salvaging of the state lies exhausted, and the last solution is the only one that remains, not resorting to this solution does not make one a “constitutionalist”, it makes one a deserter at a time when he was most needed by his country.

 

Indeed, this was the very aim of this mangled Constitution i.e to give immunity to the robber barons of the land, while counting on the pusillanimity of those who lead its Army. This was the perfect legal recipe for the success of an operation designed to take down the state.
In states with a slightly higher quotient of patriotism, it is clearly understood that when it is a choice between the state and the constitution, it is for the state that a patriot stands. 
This is what Ataturk did not need being schooled about in 1919, while the German Generals of the Second World War needed to be schooled in a lot earlier than 20 July 1944.
When every solution for the salvaging of the state lies exhausted, and the last solution is the only one that remains, not resorting to this solution does not make one a “constitutionalist”, it makes one a deserter at a time when he was most needed by his country.

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SURREPTITOUS SALE OF OGDCL SHARES : An open appeal to the Chief Justice By Maj Gen (Retd) Parvez Akmal

An open appeal to the Chief Justice

Honourable Chief Justice of Pakistan,

THAT, after the sellout of $ 913 m worth of OGDCL’s global depository receipts in a hush-hush manner by Shaukat Aziz government in 2006, all eyes in the international market are fixed on the lucrative sellout offer of our largest and most profitable national oil and gas company’s 10 pc shares yet again.

That, although the Honourable Apex Court had acknowledged the Federal Government’s right to sell the said shares, I beg to submit before your Honourable Lordship what all is not right in this exercise undertaken by the Privatization Commission.

That, done in the least transparent manner, the very selection of M/s Merrill Lynch and City Group, both American based consultants, violates the World Bank’s rule of ‘quality and cost’ based selection of consultants.

That, the consultants’ track record in Pakistan’s context has been highly questionable. M/s Merrill Lynch were denied payment of an upfront fee of $ 21 m in the early 2000s by OGDCL, when this scribe was the managing director, precisely for the same reasons. As of now, the Privatization Commission must declare how much upfront fee the consultants have been paid for this sellout. Again, the Privatization Commission must clarify whether or not Merrill Lynch facilitated the sellout of government’s 20 pc shares in the Badin Oil Field to BP at a paltry $ 73 m when the government was getting oil worth more than that amount annually from that share-holding. As for M/s City Group, their $ 913 m sellout of GDRs of OGDCL, the mega corruption at London and Luxemburg stock exchanges, still continues to baffle us.

That, very like the 2006 sellout, the shares have again been floated at those foreign stock exchanges where few questions are ever asked about any violations of the American Foreign Companies Corrupt Practices Act (FCCPA)-1977.

That, regardless of how many foreign directors come aboard OGDCL after this sellout, the whole exercise is already being steered by the foreign hands. The Minister of State for Privatization has strong IBM linkage. He is also the Minister of State for Investment as well as Advisor to the PM on Tax Reforms; conflicts of interests abound. OGDCL’s chairman has M/s Lasmo and Eni background with questionable credentials. For nearly ten years OGDCL has only had acting managing directors to serve the vested interests.

That, last but not the least, there are few examples in the region where strategic Oil & Gas assets are ever sold out in that manner. In fact most countries, like China, India and Malaysia continue to acquire such assets both at home and abroad.

That, my humble prayer, Honourable Chief Justice, is to kindly take a suo-moto notice and stop this thoughtless sellout which is definitely not in the interest of the Islamic Republic of Pakistan which has long been confronting serious internal and external threats to its very existence.

 

Maj Gen (Retd) Parvez Akmal

Former Managing Director OGDCL (May2000-March 2003)

A 31, Street : 8, DHA-I, Islamabad

 ogdcl-discovers-oil-in-sindh-1415224004-7191

Subject : OGDCL Shares’ Sellout
Assalamu ‘Alaikum, 
Encouraged by your kind support, I am giving a brief rundown of events behind the media scenes. On October 13, I had attended a hearing on the subject at the apex court where I was representing OGDCL labour union. The latter’s application was, however, turned down on technical grounds for the ”labour unions shouldn’t interfere in policy matters”.
 
I had also joined the labour union at the Islamabad press club where we made speeches on the subject but to little avail. The following day the Union’s rally confronted a police crack down. A rumpus followed in the Senate and Parliament for a couple of days and then all went quiet on the sham ‘charter of democracy front’. Alas, IK’s  dharna didn’t touch the subject, perhaps because Asad Umer’s brother is the minister of state for privatization; see, not all the siblings should be in the same party to keep any family always atop! Kadri kept quiet too despite a detail briefing by an OGDC officer on my four part article ‘Eergy security aur loot sale’ published in Nawaiwaqt (12,13,14 & 15 Oct); probable reasons later some time.    
 
On November 7, I made another effort. The attached open appeal to the honourable CJ has been sent to the dailies Dawn, News, Nation et al; though I wonder they’d publish it and, therefore, I would also be sending a signed hard copy to the registrar of apex court today.
Whilst we keep praying for the best, let’s never say die. Together we can halt this juggernaut of corruption and save the rest of our strategic assets and, in fact, our beloved motherland.
 
Thanking you all for your continued support which I value so much, 
Best regards,
Parvez Akmal. 

An Update: Geo Laments

Sale of OGDCL shares deferred
November 08, 2014 – Updated 1316 PKT
From Web Edition
ISLAMABAD: The Finance Ministry has decided to defer the sale of 10 per cent government shares of OGDCL. 

The decision to defer the sale was made by the privitisation committee as the target of $800 million was not expected to be met. This was due to the decrease in the price of crude oil in the international market.

 

 

The Privitisation Commission had made a plan for the sale of the shares, but this was delayed due the sit-ins and during this period the price of crude oil decreased.

 

The floor price of Rs216 per share had been approved with an estimated 322 million shares to be sold out of which 311 were to be offered to institutional investors, two thirds of the remaining 11 million shares to general public and one third to OGDCL employees.

 

On Friday, State Minister for Privatisation, Muhammad Zubair clarified that government was not privatising OGDCL as divesting some of the company’s shares could not be termed as privatisation.

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NAWAZ SHARIF & ASIF ZARDARI HAVE EXPLODED A HYDROGEN BOMB OF DEBT ON PAKISTANIS

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The Middle East we must confront in the future will be a Mafiastan ruled by money by Robert Fisk

Cover Photo

ROBERT FISK

 

 

Sunday 20 April 2014

The Middle East we must confront in the future will be a Mafiastan ruled by money

In Iraq, mafiosi already run almost the entire oil output of the south of the country

Saudi Arabia is giving $3bn – yes, £2bn, and now let’s have done with exchange rates – to the Pakistani government of Nawaz Sharif. But what is it for? Pakistani journalists have been told not to ask this question. Then, when they persisted, they were told that Saudi generosity towards their fellow Sunni Muslim brothers emerged from the “personal links” between the Prime Minister and the monarchy in Riyadh. Saudi notables have been arriving in Islamabad. Sharif and his army chief of staff have travelled to the Kingdom. Then Islamabad started talking about a “transitional government” for Syria – even though Pakistan had hitherto supported President Bashar al-Assad – because, as journalist Najam Sethi wrote from Lahore, “we know only too well that in matters of diplomatic relations there is no such thing as a gift, still less one of this size”.

 Now the word in Pakistan is that its government has agreed to supply Saudi Arabia with an arsenal of anti-aircraft and anti-tank missiles, which will be passed on – despite the usual end-user certificates claiming these weapons will be used only on Saudi soil – to the Salafist rebels in Syria fighting to overthrow the secular, Ba’athist (and yes, ruthless) regime of Bashar al-Assad. The American in other

words, will no longer use their rat-run of weapons from Libya to the Syrian insurgents because they no longer see it as in their interest to change the Assad government. Iraq, with its Shia majority, and Qatar – which now loathes and fears Saudi Arabia more than it detests Assad – can no longer be counted on to hold the Shias at bay. So even Bahrain must be enlisted in the Saudi-Salafist cause; his Royal Highness the King of Bahrain needs more Pakistani mercenaries in his army; so Bahrain, too – according to Najam Sethi – is preparing to invest in Pakistan.

But this is merely a reflection of a far larger movie, a Cinemascope picture with a cast of billions – I’m talking about dollars – which is now consuming the Middle East. It’s a story that doesn’t find favour with the mountebank “experts” on the cable channels nor with their White House/Pentagon scriptwriters, nor indeed with our own beloved Home Secretary who still believes that British Muslims will be “radicalised” if they fight in Syria. Sorry, m’deario, but they were already radicalised. THAT’S WHY THEY WENT TO SYRIA.

But the Taliban is no more going to take over Afghanistan than al-Qa’ida is going to rule Syria or Iraq, nor the Muslim Brotherhood Egypt. “Islamism” is not about to turn our beloved Arab and Muslim Middle Eastern world into a caliphate. That’s for The New York Times to believe.

Let’s just take a look across the region. Corruption in Afghanistan is not just legendary. This is a place where governance, law, electoral rules, tribal ritual and military affairs function only with massive bribes. It rivals North Korea in financial dishonesty (according to Transparency International). Remember the Kabul banking scandal that milked $980m (£584m) from the people (from which only $180m – £107m – was ever recovered)?

The Americans funded the Afghan warlords and then the NGOs spread their cash around the country and now, with the US withdrawal imminent – along with that of America’s NATO mercenaries – the Afghan gang bosses are not especially worried about the Taliban. Nor are they particularly concerned about women’s rights. But they are fearful that the dollars will stop flowing. A militia leader with three villas, 10 4x4s and 200 bodyguards has to find money to pay them when the Americans go home. So they will have to turn to drugs, money laundering and weapons smuggling on a massive scale. Pakistan, of course, is there to help.

 Now the word in Pakistan is that its government has agreed to supply Saudi Arabia with an arsenal of anti-aircraft and anti-tank missiles, which will be passed on – despite the usual end-user certificates claiming these weapons will be used only on Saudi soil – to the Salafist rebels in Syria fighting to overthrow the secular, Ba’athist (and yes, ruthless) regime of Bashar al-Assad. The Americans, in other words, will no longer use their rat-run of weapons from Libya to the Syrian insurgents because they no longer see it as in their interest to change the Assad government. Iraq, with its Shia majority, and Qatar – which now loathes and fears Saudi Arabia more than it detests Assad – can no longer be counted on to hold the Shias at bay. So even Bahrain must be enlisted in the Saudi-Salafist cause; his Royal Highness the King of Bahrain needs more Pakistani mercenaries in his army; so Bahrain, too – according to Najam Sethi – is preparing to invest in Pakistan.

But this is merely a reflection of a far larger movie, a Cinemascope picture with a cast of billions – I’m talking about dollars – which is now consuming the Middle East. It’s a story that doesn’t find favour with the mountebank “experts” on the cable channels nor with their White House/Pentagon scriptwriters, nor indeed with our own beloved Home Secretary who still believes that British Muslims will be “radicalised” if they fight in Syria. Sorry, m’deario, but they were already radicalised. THAT’S WHY THEY WENT TO SYRIA.

But the Taliban is no more going to take over Afghanistan than al-Qa’ida is going to rule Syria or Iraq, nor the Muslim Brotherhood Egypt. “Islamism” is not about to turn our beloved Arab and Muslim Middle Eastern world into a caliphate. That’s for The New York Times to believe.

Let’s just take a look across the region. Corruption in Afghanistan is not just legendary. This is a place where governance, law, electoral rules, tribal ritual and military affairs function only with massive bribes. It rivals North Korea in financial dishonesty (according to Transparency International). Remember the Kabul banking scandal that milked $980m (£584m) from the people (from which only $180m – £107m – was ever recovered)?

The Americans funded the Afghan warlords and then the NGOs spread their cash around the country and now, with the US withdrawal imminent – along with that of America’s NATO mercenaries – the Afghan gang bosses are not especially worried about the Taliban. Nor are they particularly concerned about women’s rights. But they are fearful that the dollars will stop flowing. A militia leader with three villas, 10 4x4s and 200 bodyguards has to find money to pay them when the Americans go home. So they will have to turn to drugs, money laundering and weapons smuggling on a massive scale. 

In Iraq, mafiosi already run the Shia port of Basra and almost the entire oil output of the south of the country. “Institutionalised kleptocracy” was a minister’s definition of al-Maliki’s government. In Syria, the rebels’ fiefdom is run by money mobs. That’s why every hostage has a price, every “Free Syrian Army” retreat – and the word “retreat” must also be placed in quotation marks – must be paid for, by the Syrian government or by the Russians or, most frequently, by the Iranians. The Syrian “civil war” is funded by Qatar and Saudi Arabia, by Libya and by Moscow and Tehran and, when it suits them, by the Americans. We’re so caught up in battlefield losses and war crimes and sarin and barrel bombs that we lose sight of the fact that the Syrian bloodbath – much like the Lebanese bloodbath of 1976-1990 – is underwritten by vast amounts of cash from foreign donors.

Just look at Egypt. The story we are supposed to swallow is that a benevolent if slightly despotic army has saved the country from an Islamist takeover. Just how President Mohamed Morsi – whose grasp of practical governance was about as hopeless as that of your average Egyptian general – was going to turn Egypt into a caliphate was anyone’s guess. Of course, our worthless political leaders – Tony Blair in the lead, naturally – are playing the “Islamist” line for the networks. Egypt was on the path to a medieval Muslim dictatorship, only rescued at the last minute by the defence minister-turned presidential candidate General al-Sisi’s belief in a “transitional government to democracy”.

Yes, the “transitional” road to democracy is all the rage these days. But the real counter-revolution in Egypt was not the overthrow of the pathetic Morsi, but what followed: the army’s re-establishment of its massive financial benefits, its shopping malls and real estates and banking, which bring in billions of dollars for the country’s military elite – and whose business dealings are now constitutionally safe from the prying eyes of any democratically-elected Egyptian government, “transitional” or otherwise. And if al-Sisi is elected the next President of Egypt – O Blessed Thought – woe betide anyone who suggests that the army, which is still the recipient of billions from the US, should clean up its multi-million dollar conglomerates.

All this is to say that the Middle East we must confront in the future – and it will be of our making as surely as the mass slaughter of its people have been primarily our responsibility – will not be a set of vicious caliphates, of Iraqistan or Syriastan or Egyptstan. No, there is one international, all-purpose name which we will be able to bestow upon almost all the states of the region, united as they have never been since the demise of the Ottoman Empire.

We will understand its masters all too well. We shall support them. We shall love them. Our Tony will understand them – Catholicism, after all, has its own history of corruption and the Vatican, as we have learned, has its own gangsters. Our enemy is not – Cameron and Hague, please take note – terror, terror, terror. It is money, money, money. Dirty money.

For the name of this brave new world will be Mafiastan. 

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BIGGEST ENERGY FRAUD IN PAKISTAN: MIAN MANSHA, ABDULLAH YOUSUF, & NAWAZ SHARIF’S US IMPORT PHARMACIS MUSSADAQ MALIK IN POWER SCAM

Energy scam?---anonymous letter raises important questions

 

 

 

A letter about the energy policy, blaming a gang of four for what is described as a con operation, had the parliamentary corridors on fire.

The thrust of the letter was that the IPPs are being paid in the name of clearing circular debt as part of a larger conspiracy. It questions the credentials of the people who are involved in the energy policy and alleges this to be a clear case of conflict of interest.  The quartet is named as Mian Mohammad Mansha, his nephew Shahzad Saleem, Nadeem Babar and Saqib Shirazi of the Atlas Group.

The key players, according to the anonymous letter, are IPP power plant owners—mainly Sapphire Power, Liberty Power (Mukati Group of Karachi) and, among others, Said Power. The hired henchmen for them are Abdullah Yousaf (Chairman of IPPs Association—IPPAC),

US Citizen and Pharmacist Mussadaq Malik (Minister of State for Water and Power) and Shahid Sattar (Planning Commission official).

It gives profiles of all of them, which raises a number of questions about them but Sheeshnag keeps it for the moment and only mentions the profile of one—Mussadaq Malik.

He is described as somebody who gets in every government from Musharraf to the Interim government and is now part of the PML (N). He is a pharmacist who first emerged as the expert of development in Nasim Ashraf’s National Commission of the Human Development. Now he comes as the biggest energy expert that this country ever saw. Most people remember him as the Jamiat’s goon from FC College in Lahore. He was recommended by Syed Babar Ali to Nawaz Sharif to which Mian Sahb readily agreed—such being the mutual back-scratching arrangement among the tycoons. It is yet to be seen what Syed Babar Ali, otherwise a rare respected tycoon, saw in this pharmacist-turned-developer-turned-energy expert.

The letter explains in detail the energy policy of 1994 and 2002 and concludes that “the project costs, operational expenses, debt repayments and return on equity is covered under the Capacity Purchase Price (CPP) invoice and the fuel cost is covered under the Energy Purchase Price (EPP). Both investors are forwarded separately by companies to NTDC/WAPDA.”

The letter gives a long detail of what it alleges to be a scam. In short, it says, “the 1994 Power Policy IPPs (total 14) continue to skim and make illegal profits on the fuel (both liquid and gas fired plants) by lying about their heat rebates (plant efficiency). Such profits are conservatively estimated to be four to five per cent. Due to delays and tariff deals, they lost the remaining cushion/padding, yet have made fabulous returns.”

“The 2002 Power Policy IPPs (total 13) over invoiced the initial project setting up cost and continue to skim and make illegal profits on operational expenses and heat rate (fuel consumption). They skim money at three levels (excluding the original project cost)—operational expense, over invoiced fuel and kickbacks from OMCs.”

The letter alleges that annual returns are in the range of 35 percent to 40 percent. “Inclusive of original project cost—a payback period of two years. Not bad.”

The letter asks some questions:

Why did the PM-designate visit Mansha’s Raiwind farm for a briefing on circular debts and energy issues? Considering that Mansha is the leader of the nine IUPPs who have invoked Government of Pakistan guarantee and is in the Supreme Court, to say the least, was it not embarrassing?

Mansha and Nadeem Babar are in the energy task force. Guess what—their key recommendation—pay IPPs. Isn’t this a conflict of interest?

Munir Malik was the lawyer of IPPs. How will he defend the case of the State as Attorney General against them?

Why did PPIB and NEPRA approve without background the checking the efficiency of diesel gensets installed at the Mansha and Atlas plants and indeed the efficiency/heat rate of all power plants set up under 2002 power policy?

Is it true that the government is giving Muzaffargarh power plant to Mansha? If so, why not bid it first?

Why doesn’t the government adjust the “stolen amounts” and then the tariff formula?

It suggests that the government should ask the IPPs to share the burden with the masses. “The full adjustment should be made in six to eight quarterly payments. This will save the government Rs 200 billion as equity for starting the mid-term programme of setting up coal fired projects. Assuming a 70/30 debt equity ratio, as used by the IPPs, the government can set up thousand MWs of power generation in next three years.”

 

Now, all of this seems to come from another lobby, which definitely has an interest. But they do have a point that needs to be studied. Otherwise, they have sent it to the SC for taking it up. God save us. 

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