Pursuant to the statement made by Senator Saleem Mandviwalla, Chairman of Senate Committee on Finance that the Privatisation Commission (PC) is responsible for criminal negligence in the Privatisation of HEC, PC has the following submission, which it would like to highlight:
i. The report of the Senate sub-committee is yet to be officially shared with the Privatisation Commission.
ii. The Privatisation Commission (PC) denies all allegations and confirms that the buyer failed to comply with the conditions stipulated in the Letter of Acceptance (LoA) and also deposited a wrongly drawn cheque. Under these circumstances, PC revoked the LoA in June 2015 and also forfeited the Earnest Money amounting to Rs. 25 million.
iii. The PC management had recommended to PC Board to either consider and decide upon the offer of Cargill Holding Limited (CHL) or reject the same; in case of rejection, to allow delisting of the entity from the list of Privatisation or to allow PC to advertise the process again.
iv. The PC Board recommended the same to the CCoP, which approved the offer of M/s CHL.
v. Three (03) PC Board and CCOP’s meetings each were held wherein approval were accorded by both the PC Board and the CCoP. These consensus based decisions were not made by the PC officials but were actually made by the entire PC Board and members of the CCOP.
vi. So far as PC is concerned, the Privatisation of HEC stands terminated since the revocation of the LOA, i.e. June, 2015. The transaction went through all legal process. Furthermore, no loss to the GoP has been caused instead the GoP has retained earnest money of Rs 25 million and also the entity.
vii. In addition, PC has also registered an FIR against the representative of M/s Cargil Holdings Company.
viii. The Privatisation Commission is fully committed to ensure the highest standards of integrity and transparency in conducting all its transactions. In case PC was assisting M/s CHL in the whole process than it would not have revoked the Letter of Acceptance (LoA) but instead facilitated the buyer to takeover HEC.
ix. Lastly, PC itself shares all the transaction documents with the NAB at the end of each transaction. This is a mandatory process, which the PC has implemented already. Furthermore, the Auditor General of Pakistan has also been requested to complete the transactional audit of all completed transactions.