Drilling companies’ merger ready to cause revenue loss to cash strapped Pakistan

The merger of sub drilling company of the Schlumberger Land Rigs (SLR) with Arabian Drilling Company (ADC) is ready to impose a major revenue loss to already cash strapped Pakistani government.

According to sources and a statement issued by Zaheer Babar the country manager of the Sea & Land Drilling Contractors Inc. a subsidiary of Schlumberger Land Rigs, the company is merging its subsidiary with the Arabian Drilling Company (ADC).

The statement added that the ADC would assume ownership of the Sea & Land Drilling Contractors Inc. and its rigs and other operations.

Sources from inside the Schlumberger Land Rigs said that the merger is a big scam with an aim for the evasion of taxes resulting in a loss of millions of US dollars to the government of Pakistan.

Babar along with some of his subordinates are actually involved in dubious activities tantamount to corruption. The sources added that since drilling contractors enjoy concession of very low or zero custom duty rates on imported parts and machinery, so the SLR management has been importing machinery on zero duties and then selling them to other companies in Pakistan for bug profits, which has caused a huge tax loss to the Pakistani government.

On the other hand, the management is eliminating local genuine businesspersons from Schlumberger and replacing them with their own dummy businesses to share profits with them.

The sources added that if an investigation along with fiscal audit by FBR, FIA, and customs is done, several heinous financial crimes of the SLR would be unearthed. The sources urged the Ministry of Petroleum and Natural Resources being the appropriate forum to intervene in the issue to lift the veil to benefit the country and catch the culprits for avoiding millions of dollars taxes unduly.

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