Privatisation of SSGC’s rights over LPG, LNG challenged
By our correspondent
KARACHI: Sindh High Court (SHC) issued notices to Attorney General of Pakistan, Ministry of Petroleum and Natural Resources, Sui Southern Gas Company and others on a petition against privatisation of SSGC’s ownership and extraction rights over liquefied petroleum gas and liquefied natural gas.
Syed Mazahir Akbar and Zafar Mehmood Malik, shareholders of SSGC, challenged the privatisation of ownership and extraction rights on LPG and LNG to a private company by SSGC on the ground that it could not take place without prior permission of Council of Common Interests (CCI) under Article 153 and 154 of the Constitution.
They submitted mineral oil and natural gas are included in item-II of federal legislative list and the provision of Article 154 of the Constitution are attracted in full force and power to formulate and regulate policies in relation to subject matter of mineral oil and natural gas vest in CCI which shall exercise supervise and control over related institutions.
Petitioner’s counsel Abdul Hafeez Pirzada argued that petitioner are aggrieved by the illegal decision taken by respondents to privatise ownership and exploration right of SSGC in its LPG and LNG assets without approval of CCI and in violation of Privatization Commission Ordinance 2000.
He contended decision of respondent would caused a loss in hundred of million rupees to national exchequer and deprived the petitioners of their higher dividends that would paid to them by the respondents. The counsel submitted that a private respondent has been granted said rights at throwaway prices by SSGC far beyond what it had bid for and in violation of rules and regulation and this was glaring loss to state exchequer and private shareholders.
The court was prayed to declare the decision of respondents to privatise and transfer of SSGC’s ownership and extraction rights over its LPG and LNG assets in natural gas to private sector without approval from CCI and requirements by Article 153, 154 of the Constitution and without tender bidding process through PC in accordance with PCO as illegal and void ab-initio.
Petitioner also prayed the Court to direct respondent to deposit all sale proceeds of unlawfully transferred LPG and LNG assets and submit statements of all accounts from August 12, 2003 till date on regular basis.