Ogra pushing country towards another crisis: PEW

Ogra decision to put a mln vehicles out of service, hurt 80m commuters

Daily life badly hurt by the decision taken to please LPG mafia

Sept 19

The Pakistan Economy Watch (PEW) on Thursday said Oil and Gas Regulator Authority (Ogra) is pushing country towards another severe crisis on the behest of powerful LPG mafia.

The hydrocarbon regulator has issued another illegal order asking provinces to remove all the CNG cylinders from the commercial vehicles disregarding the fact that they have been cleared by almost a dozen of other government departments, said Dr. Murtaza Mughal, President PEW.

He said that all the provinces, especially Punjab has started acting upon the unlawful and unclear directives of the Ogra without considering its outcome.

The controversial decision has left owners of Toyota Hiace, Suzuki pickups and taxis on the mercy of police and provincial transport authorities. CNG cylinders are being removed from hundreds of vehicles while hundreds others ferrying masses have already gone off the road indefinitely, he said.

Dr. Murtaza Mughal said that Ogra wants to destroy the transportation system in Pakistan as around one million vehicles operating commercially are using CNG fuel while 80 million use public transport fuelled by the alternative and clean energy.

Commercial vehicles consume a lot of gas which have forced them to install additional cylinders due to CNG loadshedding, he said adding that nowhere in the world there is any law limiting the number of CNG cylinders or specifying their location in vehicles.

However, Dr. Mughal said, the regulator has been playing negative role by violating its own rules for petty interests, it has failed to make any law or ensured amendment in the existing CNG laws in the last 21 years.

Supreme Court in 2009 directed massive conversion of commercial transport on CNG to cut down pollution in urban centres which also reduced oil import bill.

He called upon the CNG operators to defy the orders which are part of a conspiracy to deprive masses of economical fuel.

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Rs. 82 billion OGRA Scam or a bust bubble

Campaign against SECP can dent investors’ confidence

There has been recent outburst in the newspapers in the matter of trading of shares of SNGPL and SSGCL in reference to OGRA Scandal where SECP and its officials including former Chairman have been alleged to be involved. A trail of all the correspondence, reports prepared and investigations revealed that all of the stories were misleading and without any grounds. Over last few months a calculated campaign has been orchestrated to malign the senior management and belittle the role of SECP as corporate and securities market watch dog. The falseand baseless reports were published without verification and taking the version of SECP or senior officials who were being defamed. Such reports and news items and disparaging remarks against senior SECP officers have adverse impact on market and can seriously dent the investor confidence.

Surprisingly the role of SECP and its senior officials in the matter of SNGPL and SSGCL have deliberately portrayed in negative light in the press and have been subjected to an unnecessarymedia trial. The fact of the matter is that the SECP had been monitoring the trading in shares of SNGPL and SSGCL as far back as 2009. The preliminary assessment report in 2009 found nothing unusual in the trading pattern. In the subsequent assessment reports of 2010 and 2011 there were no concrete findings and were inconclusive. Having said that the relevant officerrequested for further probe in the matter, which after thorough review was not ceded to on account of insufficient cause/reason for further probe.

However, in view of press reports alleging illegal changes in UFG by OGRA resulting in loss of 42 billion to national exchequer and billions of profits to some brokers and in light of the pending probe in matter of OGRA by National Accountability Bureau, the SECP in exercise of powers under the Securities and Exchange Commission of Pakistan Act 1997 and the Securitiesand Exchange Ordinance 1969 vide order dated January 18, 2013 initiated an investigation into trading of shares of SNGPL and SSGCL during the period from July 1, 2010 till December 31, 201. Upon completion of the investigation a detailed report was submitted by the investigation officers on May 29, 2013.

As per investigation report, in the case of SSGCL, during the year 2010 and 2011 a total of 228.945 million shares were traded at KSE for a total value of Rs. 5,354.607 million. The scrip touched its highest level of Rs. 30.70 on September 30, 2010 and lowest level of Rs. 13.04 on January 18, 2010. In case of SNGPL, during the said period a total of 155.936 million shares were traded at KSE for a total value of Rs. 4,443.403 million. The scrip price touched its highest level of Rs. 36.60 on March 29, 2010 and lowest level of Rs. 15.25 on December 16, 2011.

The Enquiry Officers after thoroughly reviewing the transactions and trading data including telephone recordings and after meeting and having recorded statements of many individualsand entities which were accused to be involved, found no instance of market manipulation during the Review Period. No instance of pumping and dumping, creation of artificial market, false or misleading appearance of active trading, artificial inducement or depression of price, or any act which constitutes a criminal offence under section 17 of the Securities and Exchange Ordinance 1969 has been reported by Enquiry Officers.

After analyses of the relevant record including the research reports and information relating to OGRA determined that buying by NBP and NIT-SEF was due to change in the company’s fundamentals which created a demand supply disequilibrium resulting price escalation and drawing interest from sellers. The announcement of cash and bonus dividend by SSGCL and SNGPL were also the factors that attracted investor and escalated the prices. The Enquiry officers have said that the news of UFG calculations was already in public domain as it is proved from the research reports of the various brokerage houses and therefore, there was a general expectancy of appreciation in the price of the shares which drew interest from the buyers.

No adverse findings were reported against National Bank of Pakistan or NIT-SEF. A minor instance of insider trading against a brokerage house while the Enquiry officers have alsorecommended to further looking into four individuals for front running of funds of SSGC. The SECP has also carried out a review of the Investigation report that too has not resulted in any meaningful exercise and no other findings other than the report itself were made. The Review has actually endorsed the findings of the Enquiry Officers who prepared this report. The copy the Report and the Review report has been shared with the NAB and Policy Board members in addition to submission of the same to Sindh High Court in compliance to its order. The copy of the Report, Review Report and other documents are available with this scribe. 

The figures given in the press reports are exaggerated and mostly without any basis, as per the SECP report the entire value of shares traded during the period under review i.e. one year amounts to Rs. 9798 million i.e. Rs. 9.7 billion. The value of shares traded during the 90 day period around the UFG rate change is obviously much less than that. Further in presence of such low volumes in the market, there is hardly any chance of manipulation.

Allegations of conflict of interest have been leveled against the present SECP management especially one of the Commissioners in the media, however, interestingly at the time of the occurrence of this scam, the concerned official was not even in the service of SECP. This fact has also been clarified by the SECP to NAB, along with other information while assisting NAB in Tauqeer Saddiq case. The objective behind the whole affair is not known to anyone but rivalry between the two business groups has severally impacted the integrity and credibility of the SECP as an institution and as a regulator.

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Gas companies penalising innocent to hide inefficiency, losses: APCNGA

Ogra, district administration being misguided to protect big fish

Gas utilities playing judge, jury and executioner which is intolerable

Petroleum ministry should stop on-going abuse of power, ensure transparency

Dated: August 16

The All Pakistan CNG Association (APCNGA) on Friday expressed serious reservations over role of gas distribution companies in the on-going campaign against electricity and gas theft.

Gas utility companies have been victimising innocent to hide their own inefficiencies, corruption and UFG losses, it said.

The gas companies have been misguiding district administrations and Ogra to safeguard the interests of big gas fish involved in massive theft, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

He said that gas companies install faulty metres by themselves, their staff gets the reading from metres and they decide about theft and action. The utilities have been playing 'Judge, jury and executioner' which is not acceptable, he added.

Ministry of petroleum of should take note of the situation and stop the gas companies from this exploitation of the business community, he demanded.

Ghiyas Paracha said that gas companies are bent upon failing the drive of the government to nab the influential partly responsible for the energy crisis to ensure continuity of their undocumented income.

On the other hand, he said, innocent are being squeezed to hide inefficiency and corruption and to boost the annual income.

Paracha said that it is amazing that many gas theft cases have been registered in last few months but not a single official involved in it has been brought to the book despite the known fact that a consumer cannot steal energy without consent of officials concerned.

He said that those who took gas connection to run their mills but started generating electricity illegally are also gas thieves but not a single of them has been arrested and no one of the would ever be questioned.

APCNGA demanded gas meter reading through a third party and completion of all the process according to the provisions of law.

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Ogra violating rules, misguiding courts to destroy CNG sector

Powerful mafia, corrupt officials takes CNG sector as hostage

PM should take note of plot, announce CNG-friendly policy

All countries including USA, India promoting CNG

Dated July 09

The All Pakistan CNG Association (APCNGA) on Tuesday said Ogra has been violating its own rules and misguiding courts in a bid to destroy Rs 400 billion CNG sector to please powerful energy mafia.

Asking Prime Minister to taken note of plot, it said that the sector moving wheels of the economy in the most economical manner is victim of conspiracies of those who have been trying to wipe off the sector which will never be allowed.

Thousands of licences of the CNG operators have been cancelled illegally on the pretext of clause 18 of the CNG rules 1992 wherein there is no mention of cancellation oflicences, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

Speaking at a hurriedly called press conference, he said that Supreme Court in its decision on July 5, 2013 has not ordered cancellation of licences while it order number SCMIR-705 (1995) says that licences of pumps having NOC cannot be cancelled on safety concerns.

He said that Ogra has been hatching conspiracies against the CNG sector since long leaving the CNG sector and the owners of 3.5 million vehicles converted on CNG in the lurch.  

Whole world accepts the benefits of environment-friendly and economical fuel. Many countries including US have been promoting CNG while those having no natural gas have been importing LNG to convert it to CNG before providing it to masses and public transport, he informed. 

However in Pakistan, he said, some corrupt economists and pseudo intellectuals who are backed by a cabal of the wealthy and influential have been trying to form a negative public opinion against CNG sector while offering costly alternatives.

Ghiyas Paracha said that we have established world’s No. 1 CNG industry by investing Rs 400 billion which reduced environmental degradation, reduced inflation, saved billion in oil import bill and facilitated masses in every nook and corned of the country.

The leader of the CNG sector said that we helped convert 90 per cent vehicles on CNG, paid highest taxes while using minimum amount of natural gas on 100 per centefficiency and provided jobs to millions.

Some incidents attributed to CNG were result of negligence of poor taxi drivers and transporters who were forced to use petrol and LPG in unsafe manner due to CNG loadshedding.  

He added that the corrupt government officials were involved in the theft of gas for masses pay the price.  

He said that incompetent bureaucracy has been misguiding courts while the APCNGA lacks resources to pay heavy fees to the lawyers of superior courts every now and then.

APCNGA will never tolerate conspiracies of mafia dreaming to grab whole energy market of Pakistan on the cost of economy and masses, he vowed.

Paracha asked the Prime Minister to judge everything on merit and announce a CNG-friendly policy to benefit masses.

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CJP, PM asked to take note of well-orchestrated conspiracy against CNG sector

APCNGA says Ogra becomes part of conspiracy against CNG sector, illegal notices issued to 1000 operators

All CNG outlets established after NOC from twelve departments, why Ogra woke up after 23 years

Ogra, all concerned departments would be responsible for laying waste to Rs 400 billion investment

Dated July 04

The All Pakistan CNG Association (APCNGA) on Thursday said Oil and Gas Regulatory Authority (Ogra) has become part of a well-orchestrated conspiracy against CNG sector and it has issued illegal show cause notices to over 1000 CNG operators to get their stance for business on current location before cancellation of their licences.

Orga has started dancing on the tune of influential lobbies to destroy world’s No 1 CNG industry by violating its own rules and regulations, it said.

All the petrol pumps and CNG operators had taken NOC from twelve different departments under the policy of ministry of petroleum before commencing commercial operations.

These departments include Ogra, Explosives Department, Traffic Police, TMA, Environmental Protection Agency, electricity and gas distribution companies, district administration, national and provincial highway authorities, and Civil Aviation Authority, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

Moreover all CNG operators have also ensured NOC from neighbours before establishing business, he said.

In a statement issued here today, he said that all the government agencies are responsible for it if supposedly any wrongdoing has taken place during the while process.

Similarly, Ghiyas Paracha said, all these departments would be responsible for harassing masses as well as investors who have invested around Rs 400 billion in the vibrant CNG sector.

He said that Ogra has allowed construction of all CNG outlets on their current locations but the regulator work up to the so called reality after 23 long years which is amazing. Why rest of the departments have not initiated any action so far if something is wrong about locations of CNG outlets, he questioned.

Paracha said that targeting CNG stations on the pretext of residential areas is a conspiracy as all the business in the residential areas are established on commercial patches after permission from authorities.

Shifting CNG outlets out of city is simply an unworkable idea which will add to the sufferings of masses, he said.

The leader of the CNG sector said that CNG sector lacks lobby in the corridors of power therefore it is held responsible for everything and harassed on one pretext or other.

He asked the Chief Justice Pakistan and the Prime Minister to take note of the situation as CNG operators have not violated any law.

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Captive Power lobby biggest hurdle in resolution of energy crisis

Captive Power lobby biggest hurdle in resolution of energy crisis

June 27, 2013

The Pakistan Economy Watch (PEW) on Thursday said influential lobby of the owners of Captive Power Plants (CPPs) which is wasting gas worth Rs70 billion per annum is one of the biggest hurdle is the resolution of the energy crisis in Pakistan.

The incumbent government seems helpless as the powerful lobby which has been getting natural gas at dirt cheap prices since last five years without the permission of Ogra and Nepra is still enjoying unprecedented influence in the corridors of power, it said.

Dr Murtaza Mughal said that those who are getting natural gas at 91 per cent discounted rates as compare to furnace oil are being patronized despite the opposition by Planning Commission and Ogra while they have sent packing four federal secretaries which has terrified the entire bureaucracy.

A former Advisor petroleum changed gas provision priority list for three times within twenty days illegally and without the consent of concerned institutions including Council of Common Interests, he said.

Murtaza Mughal said that gas load management policy available on SNGPL clearly indicates that masses are on the top of the priority list while CPPs are at the bottom which was violated by the former government while incumbent government seems in no mood the correct the matter.

Rules clearly indicate the CPPs can get gas when it is surplus, its usage remains within 1 mmcfd and the owner of any CPP invests Rs500 million minimum. Not only all these conditions are being violated but some owners of the primitive CPPs have closed down their units while selling electricity to others to distribute spoils with government officials.

He said that the situation warrants action which has been put on the backburner since long which is increasing plight of masses and budget deficit resulting in severe energy crunch.

It may be mentioned that government figures reveal the number of CPPs at 113 which are getting 450 mmcfd gas daily to waster 326 mmcfd which translated into annual loss of Rs70 billion.

The gas load management policy of 2013 has not been approved by the competent forums and its imposition could be a bid to sweep facts under the carpet which include unholy collusion between the owners of CPPs and top government functionaries. 

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