The chairman Energy Reforms Task Force Nadeem Babar is allegedly a defaulter of Sui Northern Gas Pipelines Limited (SNGPL). The SNGPL is claiming to recover Rs800 million from the Orient Power owned by Nadeem Babar. According to the sources in SNGPL and media reports, Orient power defaulted on the payment of Rs 800 million.
Sources in the Petroleum Division informed Pakistan Today that Nadeem Babar has so far not paid approximately Rs800 million worth amount to SNGPL, notwithstanding the fact that a London court had taken a decision against his company on the request of SNGPL. They said that the London Court of Arbitration, in its decision, ordered Orient Power to make payments for all expenses in accordance with the law.
Orient Power was ordered to make a payment of Rs20.7 million to SNGPL to clear the fee and all expenditures, including boarding, lodging and travelling, of the legal team, adding that the court had also ordered Orient Power to pay Rs600 million with markup charges to SNGPL.
SNGPL had approached the London Court of Arbitration against Orient Power, as the latter failed to make payments to the former in accordance with the gas sale agreement. The incumbent Energy Task Force chairman had also appeared before the court against SNGPL.
Similarly, Orient Power approached the London Court of Arbitration to collect the legal fee and other expenses (approximately Rs100.6 million) of the case from SNGPL. However, Orient Power could not get its expenses verified.
Energy Reforms Task Force Chairman Nadeem Babar has denied the allegations and claimed that he left the company in 2018. But he admitted to own shares in the company.
Although Nadeem Babar has maintained that he had left Orient Power last year, he still continues to be the beneficial owner of the company, as he currently owns more than 25pc shares.
Nadeem Babar is an important member of IPPs Advisory Council set up by the IPPs as a lobbying entity. He was also part of the team which negotiated the release of unaudited Rs480 billion to the IPPs in 2013. This payment is still under investigation by NAB. It seems a case of conflict of interest as Nadeem Babar has direct stake and interests in the energy sector.
It will be better for PTI government to appoint some independent expert of good repute to reform the power sector. There are many reputed and competent experts of energy sector who can be tasked to bring reforms in the energy sector.
Imran khan was use to criticise the PML-N and PPP governments for appointing blue-eyed boys to the top positions. Imran Khan always declared such appointments and decisions as conflict of interest. Now he himself makes the decisions which not seem transparent. How can someone be given responsibility to guide the government to reform the energy sector when he has already facing allegations of default.
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23 June, 2019