KARACHI: Because it is listed on the stock exchange and since it has to safeguard the interests of its shareholders, the Sui Southern Gas Company (SSGC) cannot waive the late payment surcharge owed by the Pakistan Steel Mills (PSM), a statement issued by the utility’s spokesperson has said.
The statement issued by the SSGC’s spokesperson and general manager for corporate affairs, Shahbaz Islam, made it clear that late payment surcharge was being applied to all the defaulters as per a notification issued by the Oil and Gas Regulatory Authority on July 18, 2006.
“Further as a prudent operator, the SSGC filed a recovery suit against the PSM before Sindh High Court, Karachi, for recovery of Rs60,761 million along with LPS (late payment surcharge),” the statement said.
It pointed out that the SSGC was supplying gas to the PSM as per an agreement signed between the parties on Feb 22, 1978. However, the mills started defaulting on monthly gas bills from Nov 2008 and started making partial payments. The total outstanding receivable from the PSM as of Sept 16, 2020 amounted to Rs60,761m including late payment surcharge.
Published in Dawn, September 19th, 2020