Clarification - AsiaNet-Pakistan


November 10, 2020 | | Share:

Islamabad, November 10, 2020 (PPI-OT): This refers to media report published on certain section of print media and tweets on social media regarding payments by PSO PLL to their LNG Suppliers. It is to clarify that PSO signed a contract with Gunvor and PLL signed a contract with ENI in 2016.Under these contracts, port charges upto USD 0.5 million per vessel were to be borne by the suppliers and any excess was to be paid by the importer i.e. PSO PLL. During the previous Government, port charges in excess of USD 0.5 million were claimed by the suppliers and reimbursed by PSO PLL.

The total amount was approximately USD 40 million, starting from 2016. In 2019, the present Government directed PSO/PLL to look at all charges to see how they could be reduced. In this process, it was revealed that some of these excess charges, which were indeed paid to PQA, could be excluded from the definition and would therefore, became the responsibility of suppliers under the legal interpretation. Upon direction of the Ministry of Energy, PSO and PLL look up the matter with the suppliers who disagreed with this interpretation.

PSO has since adjusted these charges from its supplier, Gunvor. The Board of Directors have asked for a detailed forensic audit to establish how this illegal practice was continuing for the last five years and why previous MD and present management failed to take any remedial measures. PLL has also started the process of recovering the charges. Contrary to the entirely incorrect report, the present Government has made recovery of excess payments initiated by the previous Government beyond the strict legal obligations under the contract. More than half has already been recovered while the rest is in process.

For more information, contact:
Principal Information Officer,
Press Information Department (PID)
Tel: +92-51-9252323, +92-51-9252324
Fax: +92-51-9252325, +92-51-9252326

Category: English, Official News