ISLAMABAD: The National Accountability Bureau (NAB) has written to the Ministry of Energy’s Petroleum Division over wilful default by two oil companies causing a loss of Rs1.13 billion to the national exchequer.
NAB wrote the letter in connection with a complaint which is under process highlighting the wilful default by the two companies — SPUD Energy and Frontier Holding Limited (FHL) — on their outstanding obligations.
It said the two firms had deceived the Ministry of Energy into allowing them to continue activities in various oil and gas exploration blocks. Instead of paying the government obligations, the companies gave shareholders huge loans and paid consultancy service charges to their own subsidiaries which were taking the money out of the country, it added.
The letter said NAB was currently carrying out an investigation into the wrongdoings by the two defaulting companies and had requested more information from the energy ministry.
The letter recalled the ministry had in February last year declared FHL and SPUD Energy as “royalty defaulters” and issued notices to three oil and gas buyers —Sui Southern Gas Company Limited, Pakistan Refinery Limited and Engro Fertiliser Limited — asking them to recover the outstanding royalty amount by withholding the payment to FHL and SPUD Energy.
The notices were followed by numerous reminders declaring the two firms as defaulters. Based on the complaints, reminders were also issued from the PM Office to the Ministry of Energy in January this year for recovery of the amount from the two companies.
Published in Dawn, July 7th, 2023
