The Federal Investigation Agency (FIA) is investigating serious allegations against Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL), and other stakeholders regarding unauthorized importation of LPG, irregularities in expenditure of foreign reserves, and corruption in the tendering process. The Special Investment Facilitation Council (SIFC) expressed concerns about these issues and requested a detailed report on illegalities in LPG imports.
The federal government instructed SSGC and SNGPL to start LPG imports to address shortages and price hikes caused by unscrupulous market players. SSGC established a special purpose vehicle, SLL, to procure LPG cargoes competitively. However, complaints arose about deficiencies in procurement rules and pressure tactics by powerful market players to exclude state-owned enterprises (SOEs) from the LPG business.
The FIA urged the petroleum secretary to nominate a focal person to assist in the inquiry into allegations of corruption against SSGC, SLL, and others. Alleged actions have promoted monopolistic practices and black marketing of imported LPG, causing losses to the national economy. The FIA sought details of exemptions from procurement rules granted to SLL and records of approvals for LPG procurement.
The investigation aims to address concerns regarding corruption and irregularities in the LPG industry, ensuring fair practices and transparency in procurement processes. The involvement of powerful market players and the impact on the national economy necessitate thorough examination and corrective measures to prevent further exploitation and losses.
