ISLAMABAD: The Supreme Court on Tuesday ordered the chief executive officer (CEO) of the Pakistani government’s Central Power Generation Company (CPGC) Ltd to hold an inquiry and fix responsibility on the officials involved in making a US$21.43 million advance payment to Walter Power International (WPI) and its associate Pakistan Power Resources (PPR) headed by Iqbal Z. Ahmed for installation of the Guddu and Naudero-II Rental Power Projects.
A three-member bench of Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday ordered this while hearing a suo motu case initiated on an application by PML-Q’s Parliamentary Leader in the National Assembly Faisal Saleh Hayat against alleged fraud of billion of rupees in payments to Rental Power Projects (RPPs) detected by National Electric Power Regulatory Authority (NEPRA).
At the last hearing, the court had directed Abdul Malik Memon, CEO of CPGC, to conduct an inquiry into the alleged corruption and submit a report at this hearing, but neither did he appear nor submit that report on Tuesday. The court therefore issued fresh directives to the Genco’s CEO to make that inquiry and submit report by January 13 now.
NEPRA’s counsel Syed Najamul Hassan Kazmi informed the court that out of 18 RPPs, eight had signed off and two had been given notice. The court then ordered him to submit a statement indicating total cost of the projects and observed that though both the companies – Pakistan Power Resources (PPR) and Walter Power International – took the money in question to install rental power plants but they did not install the plants and consequently no electricity was produced.
The chief justice noted that at least Water and Power Development Authority (WAPDA) and dissolved Pakistan Electric Power Company (PEPCO) should clarify whether they had taken back the money from the companies which had not produced a single unit so far despite taking 14 percent advance payment, adding that since such a large sum had been paid in advance to the companies, therefore responsibility should be put on those who had paid the amount without taking facts and circumstances into consideration.
The government paid 14 percent an advance of US $11.28 million to WPI and its associate Pakistan Power Resources (PPR) headed by Iqbal Z. Ahmed in April 2010 for the RPP Naudero-II, while the same companies were also paid 14 percent advance of $10.15 million for the same machines for Guddu Rental Power Plant that would produce 110 MW. NEPRA had declined to approve a fresh tariff for Naudero-II after discovering that the project’s equipment belonged to Guddu rental power project, which had been dismantled illegally.
