While the country is facing an extreme energy crisis, the efficiency and sincerity of power distribution companies (DICOS) can be gauged from the fact that the field staff of the Islamabad Electric Supply Company Limited (IESCO) – the company which operates right under the nose of the Ministry of Water and Power and PEPCO – in connivance with industrialists, caused huge monetary losses to the national exchequer.
Apart from exposing huge monetary losses to the national kitty due to frauds, financial irregularities, weak internal control and thefts in IESCO, the Auditor General of Pakistan pointed out in the 2010-2011 audit report on IESCO accounts for the financial year 2009-2010 that undue favours to industrial consumers had caused loss of Rs 11.197 million to the government.
“In IESCO, various industrial connections were running beyond the sanctioned limits. The field formations neither regularised the unauthorised extension nor disconnected the energy connections. Resultantly, an amount of Rs 36.618 million on account of capital cost, rehabilitation charges and security deposit could not be recovered from industrial consumers,” the report said.
The matter had been taken up with the management in July and August, 2010 and referred to the ministry in December, 2010, the report added. “It was also discussed in the Departmental Accounts Committee (DAC) meeting held on February 9, 2011. The management explained that in a majority of the cases, the illegal extension of load had been regularised and in the remaining cases notices had been issued to remove the illegal extension of load. The record of Rs 25.421 million was produced which was verified. The management needs to expedite the pending action and provide a record of the balance amount of Rs 11.191 million,” the report said.
In another case, the national exchequer suffered a loss of Rs 52.315 million due to misappropriation of material. “In IESCO, Islamabad, the management referred 56 cases to NAB during the year 2006 regarding misappropriation of material worth Rs 52.315 million. Forty cases involving amount of Rs 27.412 million, each case being less than one million, were returned to the management by NAB in August, 2008 to initiate inquiries at departmental level. These cases were pending for finalisation of inquiries. Action needs to be finalised in the above cases,” says the report.
The report also points out losses due to damage to power transformers amounting to Rs 1.604 million. “In IESCO, Islamabad, 19,444 litres transformer oil worth Rs 1.640 million was wasted. An inquiry committee was constituted to probe into the matter. The inquiry committee recommended recovering the loss from the responsible persons but requisite action is being awaited,” the report said.
It also pointed out wasteful expenditure amounting to Rs 1.279 million due to incomplete work. “In IESCO, an approval was granted for the supply of electricity to villages Derajat Pind Mako, Mona Syedan and Remount Mona Depot of Mandi Bahuddin District during 1993-1996, on recommendation of MPA Muhammad Afzal Chan and MNA Nazar Muhammad Gondal. Expenditure of Rs 1.279 million was incurred in 1995-1996 on Derajat Mona Syedan and Remount Depot by IESCO. Subsequent to formation of DISCOs, the area came under the jurisdiction of GEPCO and FESCO. These works could not be completed despite a lapse of more than fifteen years,” the report added. IESCO also suffered losses of Rs 4.220 million due to stolen vehicles and vehicles destroyed in accidents. “In IESCO, Islamabad 10 vehicles of various makes and types were stolen. While FIRs were lodged, neither a departmental inquiry was conducted nor did police pursue the matter. This indicates that measures to safeguard the company’s assets were not operative which shows weak internal controls of the company,” the report said.
