Prime Minister Imran Khan has asked Special Assistant on Petroleum Nadeem Babar to immediately step down from his portfolio over the last year’s fuel crisis, Minister for Planning, Development and Special Initiatives Asad Umar said on Friday.
“The prime minister has decided that as the whole chain is to be probed and billions of rupees of the nation are to be investigated, therefore in order to bring this certainty that there is not even a doubt that anyone could influence the investigation, the actions have been taken for both these individuals,” Asad Umar said while addressing a press conference along with Minister for Federal Education and Professional Training Shafqat Mehmood and Minister for Human Rights Shereen Mazari. He said that Petroleum Division secretary will also be asked to report to the Establishment Division as soon as his replacement is made. He however clarified that the direction to the SAPM and the secretary does not mean that they were involved in the criminal act.
It is worth mentioning here that Daily Times broke the story in January that both SAPM Nadeem Babar and Secretary Mian Asad Hayaud Din were likely to face the music over fuel crisis in the country. The action against them was a little bit delayed but it was very much on the cards as the fate of both the officials had already been sealed.
In June last year, the country witnessed a severe petroleum shortage, ostensibly due to falling global prices and the attempt by the oil industry to avoid inventory losses. Subsequently, Prime Minister Imran Khan had ordered an inquiry commission to ascertain the facts behind the shortage and fix responsibility.
Addressing the press conference, Asad Umer said the prime minister had directed to investigate the issue and the responsibility was given to FIA to probe the case. The FIA prepared a report, that was presented to the cabinet few months ago and on this report, it was decided to constitute a cabinet committee to study the report and present recommendations to the prime minister. He said the cabinet constituted a committee comprising him, Shafqat Mehmood and Shereen Mazari. “After detailed discussions, we presented the recommendations to the prime minister and the cabinet, however the PM asked us to gather more information about the case,” he said, adding now after accumulating further information, the final recommendation have been prepared which are not being made public through media.
He said the recommendations have been divided into three categories. In the first category, criminal acts have been detailed for which the committee seeks to register criminal cases. “The evidence to be formulated in a way that charges can be brought. FIA has been told to do a forensic audit so that within 90 days prosecution efforts can begin,” Umar said.
He said the FIA has been tasked to investigate whether the legal requirement for a minimum inventory was fulfilled by the oil companies? It will probe whether the sales figures that were reported were actual numbers or was there a discrepancy between what was reported on paper and what was actual? It will also investigate if the product was hoarded, and if so, then who was responsible?
“These are all those things which in the report are prima facie […] it was determined that these did occur. So I am just saying that the evidence has to be given such a shape that it is prosecutable in court,” explained Umar.
He also spoke of certain deficiencies in the system, which also saw legal violations, for example undue advantage taken of a temporary marketing licences, illegal hospitality agreements for where the product will be kept, and the product’s sales at illegal outlets.
The minister also spoke of a key allegation in the report regarding delayed berthing of an oil ship so that when new rates are notified, the product can be sold at a higher rate. “A forensic investigation and pinpointing in this also needs to be done to ascertain who was responsible,” Umar said.
He said illegal sales will also be covered in the forensic audit. “Action will not only be limited to fines. We will ensure people are handcuffed and sent to jail.”
The minister further said that although oil retail companies and fuel stations will be probed in the forensic audit, it must also investigate which government officials facilitated such criminal acts. “The Petroleum Division will be investigated, as well as OGRA (Oil and Gas Regulatory Authority), Ministry of Maritime Affairs and Port Authority, for all the illegal, aforementioned acts,” he added.
He said the other part of the recommendations are administrative actions. “Some people sitting in administrative roles were said to not be skilled enough to sit in these positions. The Petroleum Division has been asked to look into this and report to the prime minister as soon as possible,” he said.
Umar said that the system under which the petrol sector operates has two key players: the Petroleum Division representing the executive branch and OGRA, which is the regulator. He said the legal provisions which have been drawn up for these to operate under have fallen under scrutiny after the petroleum crisis. “What is the responsibility of OGRA, the regulator and what is the responsibility of the Petroleum Division?” Umar asked figuratively, before adding, “A law will be made which will make these roles clear, so no ambiguity remains.”
Umar said overall improvements in the Petroleum Division which must be made have also been identified and will be sent to them for them to make an action plan. The plan will be shared with the Cabinet Committee on Energy and then with the Cabinet for approval, he added.
The minister said that “now the time has come for punishments” and the prime minister has made absolutely clear that this “mafia” and others that have operating for decades under the “leadership of past rulers”, “will not be spared”.