Saturday, April 17, 2010

Pakistanis Concerned about Carlyle Group Infrastructure Deal

Carlyle Group affiliate 4Gas received the contract to set up a LNG terminal at Port Qasim Authority (PQA) in Karachi. The deal was awarded by the Economic Coordination Committee of the Pakistani Cabinet. 4Gas has a multi-decade contract.

The Committee on Foreign Relations works to open doors for American branded multinationals in world markets. Carlyle Group co-founder David Rubenstein sits on this august body. The Carlyle Group keeps its good name through the use of political influence. When Carlyle affiliates do bad things, from bribing officials to euthanizing patients, corporate blames others. They do so, despite charging millions in management fees.

Pakistanis are concerned about Carlyle's CIA connections with its Frank Carlucci and President George H.W. Bush roots. They don't realize Carlyle's love for money outweighs everything. The private equity underwriter (PEU) will likely flip 4Gas long before the first decade is over.

However, owners of a LNG facility should be concerned about safety. How does a major LNG accident compare to a weapon of mass destruction? Carlyle's track record is spotty, especially when one considers their key partners in death.

Update 7-16-13:  The Pakistanis shuttered Carlyle's LNG deal.   OPIC President Elizabeth Littlefield attempted to intervene to save the project, but was unsuccessful.  What might President Obama do to help his frequent dining companion, Carlyle co-founder David Rubenstein?