ISLAMABAD: The Privatisation Commission (PC) on Saturday lodged First Information Report (FIR) against a Kenyan company, Cargill Holding Limited (CHL), on charges of issuing a ‘bogus’ cheque in connection with Heavy Electrical Complex (HEC) privatisation.

Though the PC’s director administration Syed Zain Gillani had filed a complaint against the CHL director on Nov 21, the Aabpara police kept the matter pending as the CHL had approached the IHC against the privatization of the electrical complex and had obtained a stay order in June this year and the matter was sub judice.

On Friday, the IHC dismissed the CHL application and also vacated its restraining order, paving the way for the PC administration to lodge an FIR with the Aabpara police.

The FIR was registered under section 489-F (presentation of bogus cheque) of Pakistan Penal Code (PPC) 1860 and other relevant provisions of law.

Advocate Khurram Hashmi who represented the PC in the IHC told Dawn that during the process of privatization of the Heavy Electric Complex (HEC), Sabur Rehman on behalf of M/S CHL, deposited Rs25 million as an earnest money with the PC and made an offer to purchase the shares of the HEC along with its all liabilities, upon which it was allowed to proceed in the transaction process by the PC Board under rule 6 of the Privatisation Commission (Modes and Procedure) Rules 2001.

However, the Cabinet Committee on Privatisation (CCOP) after considering all the facts and the recommendations of the PC board, approved the privatisation of the HEC on the conditions that CHL shall assume all current and future liabilities of the HEC and shall be responsible to take up the liabilities pertaining to the gratuity and provident fund of the HEC employees.

The FIR stated that upon acceptance of the said offer, on April 6, 2015, the PC issued a letter of acceptance (LOA) to Mr Rehman on behalf of the CHL. As per the LOA, the Kenyan company was under an obligation to pay the Rs225 million within 45 days of the share-purchase agreement signed with the PC.

The agreement had clearly mentioned that upon failing to meet the deadline (to execute the agreement), the PC had the right to revoke the LOA and forfeit the earnest money of Rs25 million.

The FIR cited that PC as per the agreement demanded that the payment should either be in Pak Rupee or other internationally accepted foreign currencies (dollar, pound sterling and euro), but refused to accept the cheque in Kenyan shillings issued by the CHL.

The CHL director, Rehman, submitted a cheque dated May 21, 2015, amounting to $2.25 million drawn at Diamond Trust Bank Kenya Limited for making the payments but the cheque was subsequently returned unpaid.

Since the cheque turned out to be bogus, the PC vide letter June 22, 2015 revoked the LOA as the CHL failed to fulfill its obligations within the stipulated period.

Published in Dawn, November 29th, 2015