By SKM
May 21, 2025
ISLAMABAD: The management of Sui Southern and SLL (SSGC LPG Limited) landed into deep trouble for allegedly abusing the exemption from PPRA rule while importing LPG as the Petroleum Division in line with the letter from FIA has asked OGRA to initiate an inquiry about top officials of SLL who were allegedly involved in fraud and scam of imported LPG.
This has been disclosed in a letter the Petroleum Division dispatched to OGRA on May 19, 2025 asking for required action against those officials of SLL involved in fraudulent activities in LPG import as per rules after getting the official correspondence from Corporate Crime Circle, FIA, Karachi, on the LPG import scam by SSGC and SLL.
Earlier FIA, Karachi sent on April 24, 2025, its correspondence to Secretary of Petroleum Division with an application Federal Investigation Agency received from one Syed Imran Bukhari S/o Syed Muhammad Aslam Bukhari in FIA Karachi Zone.
This scribe approached acting Managing Director of SSGC Mr Mohammad Amin Rajput to know whether the management of Sui Southern and its subsidiary SLL is involved in the alleged LPG import scam by misusing the expiation of PPRA rules, he responded that he had never been directly involved in SLL matters as he is a Non-executive Board member. He said he knows it’s a Public Sector Company so all procurements are done legally. If the Ministry has asked OGRA (an independent regulator) to investigate, so better they shouldn’t give any version.
The News also tried to take version of Mr Jawad Ali Khan Managing Director of SSGC LPG Limited (SLL) but he didn’t respond to the questions sent to him. He also opted not to pick the calls.
However, Mr Syed Imran Bokhrai in its complaint titled “Application for stern legal action or registration of criminal case against the management of SGGC and concerns fraudsters involved in fraud and scam of imported LPG” mentions that in April 2023, SSGC LPG Limited (SLL) a subsidiary of Sui Southern Gas Company Limited (SSGCL), was given exemption from PPRA Rules to import LPG at negotiated prices. This exemption has since been extended twice. Under exemption from Rule 40 of PPRA Ordinance, SSGC Is entitled to negotiate with any bidder after the bid opening and determine with “Most Advantageous Bidder,” on the basis of negotiation. “Using this exemption and government resources, SLL management is purchasing LPG worth USD 20 million per month (PKR 5.7 Billion per month) from private UAE-based suppliers as pricing is advantageous for them personally and suppliers and not the people of Pakistan.
Any bidding process permitting negotiation of price post determination of the supplier, and that too not based on urgency/emergency but for fixed periods of time, renders procurement completely non-transparent. And the persusal of the method adapted to negotiate and determine the “Most Advantageous Bidder” for cargos supplied during October 2023 indicates that the process is non-transparent.
Mr Bokhari also argues that the management of SSGC & SLL does not only procure and import LPG in a non-transparent manner but also disposes of it of in a discretionary manner without following a tendering process. Thereby operating in a manner that the employees indulge in discretionary trade of LPG amounting to Rs13 Billion every month. PPL (Pakistan Petroleum Limited) being a state-owned company disposes of its LPG through a transparent bidding process on monthly basis, SLL on the other hand disposed of LPG amounting to Rs7 Billion without following any tender or bidding process only in month of October 2023.
“While there is a possibility to limit the role of SOEs in business sector, grant of extraordinary exemptions for procurement, lack of transparent procedure for sale and disruption local production of LPG by SSGC are practices that need to be curbed immediately to safeguard national interest and energy security of Pakistan. This is a matter of great concern that the management of SSGC just for their personal interest and kickbacks closed the supply of gas to Jamshoro Joint Venture Limited (JJVL) LPG-NGL extraction plant since June 2020 and delayed the matter with one pretext or the other and not resolve the disputes between the plant management. As the plant can be used as an import substitution industry against LPG import and save the precious foreign reserves being used for import of liquid gas.” Ends
