LAHORE: In a rebuttal issued by Government Holdings (Private) Limited (GHPL), GHPL has denied all news items regarding the use of GHPL funds by Pakistan LNG Limited (PLL) and Pakistan LNG Terminal Limited (PLTL).
GHPL in a statement said “GHPL would like to categorically deny the affirmations made in the news report. The news item is misleading and contradictory to established facts. Government Holdings (Private) Limited (GHPL) is 100 per cent owned by Federal Government with a mandate to act as an E&P company and to hold the Federal Government’s Working Interest as the state participator in various petroleum rights.”
The statement added “In terms of Memorandum and Articles of Association of GHPL, the company is mandated to acquire the Federal Government’s Working Interest in existing and new petroleum joint ventures as well as is authorized to undertake incorporation of affiliated companies, holding shares in other companies, utilizing its funds and making investment in projects which would benefit GHPL upon the direction of Federal Government.”
It went to say, “The reference regarding consent and approval of provinces for utilisation of GHPL’s Funds for PLTL and PLL has been misconceived and misreported. Entry 27 of Part I of the Federal Legislative List deals with the exclusive authority of Federal Government with respect to matters relating to imports and exports. The subsidiaries dealing LNG import and Regasification Terminal Projects were incorporated by GHPL in pursuance of Federal Government directions vide ECC decision. As being parent Company and inconsistent with the directions of the Federal Government, the initial funding support to PLL and PLTL has been provided by GHPL.”
“Therefore, in view of the facts above and persistent to recognized Government of Pakistan rules and regulations, no violation of these procedures has occurred at any stage. The contents of the news item are therefore strongly denied.”
It was earlier reported that billion rupees worth of GHPL’s funds were allegedly being used by PLL and PLTL without the necessary approval of provinces.
Sources privy to the development told Pakistan Today that billion rupees funds of GHPL are allegedly being utilised by PLL and PLTL without required permission of the provinces. They said a standby letter of credit worth $20 million was allegedly issued to Pakistan Gasport LNG terminal company from the funds of GHPL.
They also said that PLL and PLTL are utilising these funds to run their business related with LNG and its import to the country despite the fact that the funds of the GHPL were made to be utilised for an increase in local oil and gas production. However, the local gas production of the country has decreased to 400 million cubic feet per day due to lack of ruler’s interests in it, said sources.
They added that the ruling elite have so far remained all out to promote LNG business and GHPL’s funds are allegedly being utilised in LNG companies to meet the purpose.
Sources also said that billion rupees worth funds of GHPL are allegedly being used to meet the expenses of ISGS, PLL and PLTL. Funds of GHPL are given to the companies (PLL & PLTL) as short-term loans which will be recovered, they added.