LAHORE – In response to an Online news agency story “Massive corruptionrevealed in Punjab Energy Company”, the company’s spokesperson has stated:“There is not a single rupee loot/plunder in Punjab Energy Holding Company(Pvt) Ltd (PEHCL), rather almost Rs 42 Million have been saved byundertaking few initiatives for cost saving since the inception of thecompany. The allegations are totally baseless.”

“NAB is investigating all 56 companies on the directions of Supreme Courtand there is no special investigation for PEHCL. The company has providedall data and documents as directed by NAB and Supreme Court in fullconfidence. There is no accused employee in the company what’s so ever.

The company was formed in light of the Promulgation of the 18th Amendmentto the Constitution and Article 172(3), which states that joint ownershipof mineral oil and natural gas between federation and province. Similarcompanies were formed in other three provinces and GHPL under the federalgovernment, a company of similar nature and functions was also formed inearly 90’s. The business of the company is regulated under Petroleum Policy2018 of the federal government. The independent board members are the exCEO’s / MD’s of state owned oil and gas companies and none of the boardmembers are being investigated at all and such allegations are baseless.”

“Under the Petroleum Policy 2012 and Petroleum laws 2013, the company onlyhas a right of 2.5 % working interest in the exploration blocks in Punjab.The current board has only authorized the company to pursue joint ventureswith state owned companies’ i-e., OGDCL and PPL only. Company can’t haveany project of its own, and those who understand the Petroleum laws knowsthat provincial Holding companies shall always be minor shareholders inexploration projects under taken by OGDCL and PPL. The company, with verylimited funds managed to analyze all exploration projects in Punjab andselected 4 explorations blocks to exercise its constitutional right of 2.5% working interest with PPL & OGDCL. PEHCL, with the help of existing dataavailable with Ministry of Petroleum & natural resources did an in houseinitial project to ascertain the hydrocarbon potential of Punjab withoutthe help of any external consultant to save cost.”

“The allegation of massive corruption of Billions is frivolous as no suchbillions were ever received in the company in the first place and fundsrelease is still awaited which was approved by cabinet early in 2018.Further, no such allegations ever exists against the Chairman Mr TariqKarmani nor Mr Asad Gilani, Secretary Energy, who is also acting as CEO ofthe company.”

“It must be noted that both the Chairman and the Secretary Energy / CEOPEHCL are not drawing any salary or benefits from the company. Mr AsadGilani is on approved ex Pakistan leave and shall resume office on 11August 2018.”

“PEHCL is only banking with Bank of Punjab under the advice of FinanceDepartment and maintains single account only. Such allegations of multiplebank accounts are baseless. Not a single rupee have been wasted rathermillions have been saved by keeping it as a lean organization by notacquiring lavish offices and purchase of vehicles. PEHCL’s 6-member staffis placed in Energy Dept to optimize the current space available.”

“No allowances other than salary and administrative expenses amounting toRs 11.6 million was paid in total of past 3 years. Company has not approvedany benefit or allowance other than initially fixed salaries. Theallegations of Rs 15.9 Million being transferred to personal accounts areextremely fabricated and baseless.”

“It is further clarified that Mr Ahmad Shahryar, Chief Operating Officer,was hired and interviewed by the Board of Directors on merit. His alldegrees are verified by HEC and available in company’s record. Beforejoining PEHCL, he has worked as CEO as well as on senior managementpositions with local and foreign Petroleum companies both in Pakistan andabroad. He worked for almost 12 years with PETRONAS, State owned company ofGovernment of Malaysia. His Salary at this position is much less ascompared to OGDCL or PPL, whereby his counterparts are drawing 3 times thesalaries in a bracket of Rs 1.5 to Rs 2.5 Million per month along withother benefits.”

“Similarly, Tariq Rasheed was hired as Manager Technical, and possesses atrue verified copy of domicile of Punjab. Also, Mr Zia Ur Rehman, being thecompany secretary was hired on merit, according to the criteria in SECPcorporate governance rules 2013.”

“The company has been audited by world renowned auditors M/S KPMG andaudited reports are available with the company as well on company’swebsite.”