Litigation costs OGDC Rs40m

ISLAMABAD - Oil and Gas Development Corporation (OGDC) has reportedly spent Rs40 million in last 16 months in futile litigation with different people and organisations.
But despite wasting such a huge amount, the corporation has not won a single case, TheNation learnt on Sunday. OGDC is developing a bad name for its legal disputes and it is a widespread understanding among the employees that the organisation is spending money on those cases which are not worth-contesting.
Well-placed sources told TheNaion that in most of the cases the organisation already knew that it was on the weaker side but even then it involved itself in litigation and lost in the end. Most of the litigations started when the organisation violated rules and regulation by ignoring merit, sources said.
OGDC being in oil and gas business is a rich organisation and has launched such projects which are quite lucrative ones and many private sector companies have expressed deep interest in them. According to sources, the problem began when the organisation’s top management wanted to hand over certain project to some blue eyed persons or when the OGDC did not fulfil its promises done with employees. The sources said had the organisation followed the rules and regulations and not violated merit, 90 percent of the cases would not have started. For example, the sources said, “OGDC is in litigation with some companies that install oil and gas equipment. OGDC generally invites tenders for the plant and equipment installation and it is bound to give the project to that company that quotes lesser price for the specific project but in some cases, it happened that the organisation tried to give the project to that company whose rates were even double as compared to the least quoted price”.
What happens that the aggrieved party goes to the court as it has right to that but at the same time OGDC authorities while knowing that they are in the wrong decide to fight back despite accepting the opponents’ rights. Most of these litigations are because of the vested interests of the top management, the sources further maintained. It was because of the pressure of LPG lobby on PM. That lobby wanted to grab the LPG extraction plant but at the same time most of OGDC shareholders were not in favour of outsourcing LPG so PM had to fire MD OGDC to impose his orders.