The management of Sui Southern Gas Company (SSGC) and its subsidiary, SSGC LPG Limited (SLL), is under scrutiny for allegedly exploiting an exemption from the Public Procurement Regulatory Authority (PPRA) rules in the import of Liquefied Petroleum Gas (LPG), The News reported.
Following a formal request from the Federal Investigation Agency (FIA), the Petroleum Division has instructed the Oil and Gas Regulatory Authority (Ogra) to investigate the senior officials of SLL for their involvement in a potential fraud concerning the importation of LPG.
The Petroleum Division issued a letter on May 19, 2025, directing Ogra to take necessary action in line with regulatory guidelines after receiving official correspondence from the FIA’s Corporate Crime Circle in Karachi regarding the suspected LPG import scam.
The investigation stems from a complaint filed by Syed Imran Bukhari with FIA Karachi in April 2025, which claims that SSGC and SLL misused the exemption from PPRA rules granted in April 2023 to import LPG at negotiated prices.
The exemption, which was extended twice, allowed SSGC to negotiate with bidders after the opening of bids, a practice that the complainant asserts has led to the purchase of LPG worth $20 million per month (approximately Rs5.7 billion) from private UAE-based suppliers, which he claims benefits individuals involved in the transaction rather than the people of Pakistan.
The exemption from PPRA Rule 40 permits SSGC to negotiate the terms with suppliers post-bid opening, but the complainant argues that this process has rendered the procurement completely non-transparent. He further alleges that the LPG imports are not only procured in a questionable manner but also disposed of without a formal tendering process, making the whole transaction opaque.
Acting SSGC Managing Director Mohammad Amin Rajput denies involvement in the matter, stating that he is a non-executive board member and that all procurement is done in accordance with legal requirements.
The case has raised concerns over the integrity of public procurement processes, particularly with regard to the transparency of negotiations and the disposal of government resources. As the investigation continues, the involvement of top officials remains under scrutiny, with a focus on the potential misuse of exemptions granted to state-owned entities.
