Petronet-LNG hit by more damaging allegations

Vol 21, PW 20 (12 Jul 18) People & Policy

Petronet-LNG's president (projects) Rajeev Agrawal shows no sign of letting up in his campaign to highlight examples of a gross violation of company policy by managing director Prabhat Singh.

In his latest letter to newly appointed oil secretary MM Kutty on July 2, Agrawal accuses Singh of yet another 'conflict of interest' in awarding an event management contract to the company of a "family friend" earlier disqualified from bidding. Under scrutiny is the contract for a cultural show to celebrate Petronet-LNG's 21st Foundation Day at Siri Fort Auditorium in Delhi on June 15 (2018).

A note from Petronet-LNG's human resources department on June 1, seen by this report, confirms Mumbai-headquartered PineTree Pictures was hired for Rs55 lakhs ($80,000) "in view of the previous experience working with the party (PineTree) and quality of (its) work." In his note to Kutty, Agrawal claims PineTree was disqualified from a February 2018 tender to hire an event manager for the show and claims the decision to hire PineTree was issued by Prabhat Singh. "This is a gross violation of company procedures and shows misconduct, unethical business practice and corruption," adds Agrawal.

"As per the tender norms, work cannot be awarded on a nomination basis to a rejected party in a tender. Second, clause 4.11.3 of the (Petronet-LNG) contract and procurement procedure manual states a tender committee comprising senior officers should have been formed to consider giving the contract on nomination."

LNG Summit