PESHAWAR: The Provincial Inspection Team (PIT) has recommended action against officials of Khyber Pakhtunkhwa Directorate General Mines and Minerals (DGMM) for misuse of power and negligence, causing losses to government kitty.

PIT recommended to the provincial government to immediacy retrieve its share in the profit earned from Kurram soapstone joint venture (JV) project signed between the Governor’s Secretariat and Pakistan Minerals Development Corporation (PMDC).

Officials sources said that an inquiry was ordered against the officials, who misused their authority in granting a prospecting licence to Sikandar Khan for an area earmarked for the joint venture (JV) and its subsequent out of the way conversion into a long term mining lease and that too in a proven area of Dabarnao Gandao in Kurram district.

In one case, a prospecting licence was unlawfully converted into mining lease allegedly in connivance with government officials. In another case, the government’s share in the project was reduced.

Inspection team urges KP to retrieve its profit share from Kurram soapstone joint venture

The inquiry report, a copy of which is available with Dawn, says that Sikandar Khan applied for a prospecting licence of soapstone over an area of 1,860 acres in Dabarnao on November 30, 2004.

The minerals concession cell declared the area free and not overlapping and the case was forwarded to the political agent for further action on December 4, 2004.

The political agent verified and countersigned Mr Khan’s No Objection Certificate (NOC) and Qaumi Agreement, an accord signed with the local tribe, on February 3, 2005. The demarcation certificate was signed by mines surveyor of the minerals concession cell. The allotment letter was issued on February 22, 2005 with the instructions to fulfil the remaining requirements for award of work order.

The report says that a memorandum of understanding (MoU) was signed between Governor’s Secretariat and PMDC on March 20, 2003 for the joint venture project on development of soapstone deposits in the district.

The deputy director minerals concession cell in a note to secretary to governor on March 18, 2005 said that an area of 5,200 acres was reserved for JV project but during the inquiry the minerals development department failed to prove the stance. The deputy director further said that 1,860 acres applied for soapstone by Mr Khan overlapped the JV project area.

The report says that the statement of the deputy director was in contradiction with the earlier analysis while processing Mr Khan’s case for the said area. It was proposed in the note to conditionally grant the area to Mr Khan for prospecting licence of soapstone in Gandao, after deducting major portion of the ‘overlapped’ area with the joint venture.

Astonishingly, the report says, after few days Mr Khan submitted another sketch of a different area of 1952 acres in Gandao and was declared as free not overlapping by staff of minerals concession cell (Fata) on March 24, 2005.

The sketch of 1952 acres area was not processed through the director minerals while the deputy director issued Mr Khan’s work order for grant of prospecting licence for soapstone over an area of 1952 acres in Gandao on March 25, 2005.

Mr Khan had not been issued NOC by political agent for 1,952 acres having different coordinates from the earlier area of 1,860 acres besides Qaumi Agreement had also not been obtained and the licensing authority had not approved the work order for 1952 acres.

“Hence, the work order issued by deputy director minerals was in violation of rules and without approval of the competent authority,” says the report.

Mr Khan also did not submit quarterly reports on progress of work and monthly production return to the licensing authority despite the fact that six reminders were issued to him between July 13, 2005 and Jan 25, 2007.

“Mr Khan’s licence could have been cancelled but no action was taken which showed the concerned staffs’ negligence besides pointed out favour extended to him in converting prospecting licences into mining lease,” it says.

The report recommended that action should be taken against the then director, deputy director and surveyor(s) of minerals concession cell.

It said that in the original JV agreement, the share of Governor’s Secretariat was 70 per cent and that of PMDC was 30 per cent in the profit.

After establishment of Fata Development Authority (FDA), the JV was being looked after by it to avoid any legal complications. An addendum was also issued on August 10, 2010 to substitute the word ‘Governor’s Secretariat Fata, Peshawar NWFP’ with ‘FDA, Peshawar’.

“Ironically, in the said addendum, the profit share for Governor’s Secretariat was reduced from 70 per cent to 49 per cent while that of PMDC was increased from 30 per cent to 51per cent,” said the report.

It said that tonnes of soapstone were produced under the joint venture project but not even a single penny was transferred to the provincial government. “It is therefore recommended that necessary action against concerned officials of the DGMM under relevant rules may be taken,” it added.

Published in Dawn, July 17th, 2023