— File photo.
— File photo.

ISLAMABAD: Former managing director of Pakistan State Oil Naeem Yahya Mir has claimed that an influential oil mafia hit by his fuel indigenisation campaign was behind his removal despite record profits and increased product sales achieved by him in a short period.

Talking to Dawn, Mr Mir who had been removed from the post on Monday alleged that the same cartel was behind a sinister campaign against his integrity and said he would contest any investigation because he had not claimed any personal benefit from the company he served for almost 30 months.

“I have no regret over what I did at PSO but I have learnt a lesson not to work for any public sector organisation in Pakistan in future,” he said, adding that furnace oil being used in the country was of very poor quality because a group of importers cartelised the import by restricting quality bidders from participating through specifications which were not available in the international oil market. They were supplying poor quality fuel oil at very expensive rate — a practice he claimed to have been put to an end. To replace this, he said, he had entered into an agreement with Bakri Oil for a blending facility to provide one million tons of better quality furnace oil against payments in the local currency instead of imports in foreign exchange involving about $5 billion in five years. “This would have saved about $1bn.”

Mr Mir alleged that a group of influential people had used the Transparency International Pakistan to criticise the deal. The National Accountability Bureau investigated the deal but found nothing wrong with it and asked him to invite bids and, if no other party came forward, award the contract to Bakri Oil.

He said no party had participated in the bid for local blending of furnace oil. Later Bakri Oil declined to go ahead with the project, saying its reputation had been tarnished and it would never do business in Pakistan.

“I was able to break a cartel of four companies and saved $30 per ton of petrol,” he said, adding that the companies had monopolised the bidding process for a product which was not available in the international market but was particularly designed for Pakistan through blending to evade fair competition.


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Comments (10) (Closed)


NK Ali
Jul 31, 2013 09:57am

This is a very lucid statement and needs to be investigated surgically. The Supreme Court must take 'suo moto' notice and Kamran Khan must bring it on his program. Saving USD. one billion is a lot of money (PKR one hundred billion, approx.) and he should get the highest civilian award for this performance and additionally, for breaking the cartel. If the present PM is sincere to this country he should take immediate notice and put an end to this 'financial skullduggery.' The money saved can do a lot for this country because the rich of this country are not doing anything for this country's education and economic stabilization. The rich and foreign companies won't get richer but Pakistan will get poorer. Salams

NK Ali
Jul 31, 2013 09:58am

This is a very lucid statement and needs to be investigated surgically. The Supreme Court must take 'suo moto' notice and Kamran Khan must bring it on his program. Saving USD. one billion is a lot of money (PKR one hundred billion, approx.) and he should get the highest civilian award for this performance and additionally, for breaking the cartel. If the present PM is sincere to this country he should take immediate notice and put an end to this 'financial skullduggery.' The money saved can do a lot for this country because the rich of this country are not doing anything for this country's education and economic stabilization. The rich and foreign companies won't get richer but Pakistan will get poorer. Salams

Chris
Jul 31, 2013 03:40pm

I don't quite know if Mr. Mir is "incorruptible" or not. However, if I look at the composition of the PSO during the time of PPP, and the practices therein, its a big question mark - improbable to have honest people anchoring institutions in a government whose second name is "corruption". So Mr. Mir doesn't seem "believable". Notwithstanding, I am in Saudi Arabia and the BAKRI which claim to have tarnished their reputation do NOT have a good reputation in any case here.

I can bet for all my money that during the past five years, many including directors, board members, chairmen, MDs, select employees, politicians made a whopping sum of money through PSO. We will never know for sure, as institutions have been destroyed courtesy our "clean" political parties - PML N included!

patriot
Jul 31, 2013 03:48pm

'' I have no regret over what I did at PSO but I have learnt a lesson not to work for any public sector organisation in Pakistan in future''

A remark made by an efficient professional. Now where is our Supreme Court.. pl. take SOU MOTO notice and action.

patriot
Jul 31, 2013 03:48pm

have no regret over what I did at PSO but I have learnt a lesson not to work for any public sector organisation in Pakistan in future

mehmood bhanji
Jul 31, 2013 07:16pm

Honorable Chief Justice is it not worth looking into this on a priority basis?

S. Israr Ali
Jul 31, 2013 07:42pm

What former MD of PSO, Yahya Mir, is saying appears to make sense and a prima facie case of a scenario wherein this country and its hapless people have been made victim by cartels and mafias. Matter needs investigation in national interest by fixing term of reference, responsibilities fixed and identifying those involved and benefitted. If proved correct and those identified besides initiating penal actions, their fortunes so built should be confiscated by the state.

IBN-E-ASHFAQUE
Aug 01, 2013 07:55am

Mr. Mir, public sector organisations are for looting by politicians, bureaucrats and shady business entities in Pakistan. Just see what is happening in Railways, Steel Mills, PIA etc. You are lucky that the oil mafia did not treat you as they treated Mr. Mirza another honest and brilliant PSO chairman. May Allah protect Pakistan.

Agha Asad Raza
Aug 01, 2013 08:16am

Remember the MD PSO long ago who was murdered alongwith his driver ? His name was Shaukat Mirza and the cause was in all probability the Oil Mafia as he was investigating the corruption!! Where is justice in this country?

Khanm
Aug 01, 2013 10:57am

How effective the Supreme Court would be ... you have to see the past track record.... Nothing has been achieved … A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.