Friday, October 29, 2010

Group of OGDCL officials accused of favouritism

ISLAMABAD: Some of the senior officials of the Oil and Gas Development Company Limited (OGDCL) have been granting favours to a local private chemicals supply firm, Industrial Equipment Services (IE Services), said a report.

“The OGDCL officials are making all efforts to award contracts for unnecessary procurement” worth more than Rs178 million rupees, said the report written by a senior OGDCL official.

They want to purchase two vacuum trucks at a total cost of Rs130 million (Rs65 million each) and a mini-cementation lab costing around Rs48 million to IE Services, said the report, available with The News.
The report pointed out fraudulent deals of billions of rupees for the supply of chemicals and other materials to OGDCL by IE Services.
It made stunning disclosures about a group of officials violating company rules to provide opportunities to IE Services for securing supply contracts.


When contacted, OGDCL Managing Director Naeem Malik declined to comment on the document. He said he would not get involved in any kind of politics. Later he switched off his cell phone.

The report said that General Manager Supply Chain Management, Manager and In Charge of Departmental Supply and Manager Foreign Procurement were protecting IE Services’ interest in OGDCL and giving it benefits of billions of rupees in different supply contracts.

“In many cases, they (IE Services) have submitted false, fabricated/ counterfeit documents. Instead of blacklisting or giving them warning, GM SCM and Manager I/C (DS) not only fully supported IE Services and its sister companies but also transferred all officials who they thought were hindering their activities.” The report added that GM SCM rejected all other bids for supply of 500 MT of KCL chemical without giving any solid reason and awarded the contract to Petrico, a sister company of IE Services. The price was higher by Rs250 million than the market rate.

Besides, IE Services got a contract for supply of 200 MT of sodium poly acraylate by submitting a counterfeit letter of original equipment manufacturer (OEM). Not only was this procurement unnecessary, but it was also made at 100 percent higher price than was paid in the previous order, said the report.

Also, IE Services submitted an agreement of joint venture with J B Oil & Gas and Conquest Drilling Fluid, USA, which was found to be counterfe

It may be noted that most of the OGDCL supply business during the last two years went to IE Services. A list available with this correspondent reveals that 52 projects involving payments of billions of rupees were awarded to IE Services in less than two years.

The document added that IE Services was using all tactics to get sidelined the officials who refused to become a party to these practices.

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