Sindh govt, HESCO lock horns over Rs 5.3b outstanding bills

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Minister says he is introducing strict audit system in local govt dept to ensure efficient utilisation of funds

The Sindh government and Hyderabad Electric Supply Company (HESCO) are at loggerheads over the outstanding electricity bills that the provincial government claims were made by HESCO excessively to the tune of at least Rs 5.316 billion.

Still, the two sides are disputing over the authenticity of electricity bills amounting to over a billion rupees.

The row was pinpointed by Local Government Secretary Javed Hanif in a meeting that, under the chairmanship of CM Qaim Ali Shah, decided in principle to subsidise power-related expenditures of the Karachi Water and Sewerage Board (KW&SB) and WASA Hyderabad.

In his briefing, the secretary HESCO had issued outstanding bills worth Rs 7.680 billion against the 172 connections of WASA Hyderabad. But, he claimed, after verification and reconciliation the amount claimed came out to Rs 2.364 billion only against the 102 existing connections until October 2012.

Hanif said the provincial government had paid electricity bills of Rs 874.928 million to HESCO while the outstanding dues of Rs 1.371 billion against 26 connections were still disputed between the two.

Later, the CM decided to restore subsidy to KW&SB and WASA on account of the two institutions’ power consumption.

He directed for establishing a separate head of Operation and Maintenance (O&M) for all water supply and drainage units working in the rest of Sindh and assured their functioning to ensure prompt and efficient deliveries to the citizen.

He decided this while presiding over a meeting held at the CM’s House to review the performance and bottlenecks of local government department on Wednesday.

Addressing the meeting, Shah said local government department being a basic service-providing organisation was important enough to be strengthened so the people could be served up to their expectations.

He said Sindh government in principle had decided to provide subsidy to the KW&SB and WASA Hyderabad to supplement their electric expenditures but strict reforms and revamping of these organisations was needed to put them on self reliance.

He formed a three-member committee, comprising secretaries of finance, local government and energy departments, to coordinate with K-Electric and HESCO authorities to reconcile the outstanding dues of KW&SB and WASA and issue the payment.

He directed the officers of these organisations to improve their recovery, plug their leakages and make an effective mechanism to resolve their problem of over staffing.

While discussing the problems of water supply and drainage system in other districts and towns of Sindh, the chief minister directed the officers concerned to establish a separate head of operation and maintained to keep these units in working condition and enable these to cater the needs of the people up to their expectation.

The chief minister formed another committee comprising the representatives of local government and finance department for evolving mechanism for efficient utilisation of the budget of town committees, municipal committee and to ensure efficient deliveries to the citizens.

Sindh Local Government Minister Sharjeel Memon informed the meeting that he was introducing a strict and effective audit system in the local government department to ensure efficient utilisation of funds. He hoped that the result would be encouraging.

Expressing satisfaction over the restoration of subsidy to KE&SB and WASA, he sought for strict and efficient officers to convert these units into beneficial ones.

Memon, Adviser to CM for Finance Mruad Ali Shah, Secretary Finance Sohail Rajput, HDA DG Iqbal Memon, WASA MD Saleemuddin and other officers concerned attended the meeting.

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