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Daily Times - Leading News Resource of Pakistan - Court orders NAB to take action against Raja Pervez Ashraf

12/15/12 11:58 PM

Daily Times - Leading News Resource of Pakistan - Court orders NAB to take action against Raja Pervez Ashraf
SC cuts off rental power * Declares government strategy to overcome severe electricity shortages a complete failure * Asks NAB to submit fortnightly progress report to SC registrar By Hasnaat Malik ISLAMABAD: The Supreme Court on Friday declared all the countrys rental power plants unlawful and ordered legal proceedings against former water and power minister Raja Pervez Ashraf. A 90-page verdict, authored by Chief Justice of Pakistan Iftikhar Muhammad Chaudhry, read that the federal government /WAPDA/PEPCO/GENCOs had failed to control pilferage of electricity from the system because of bad governance and failure of the relevant authorities to enforce the writ of the government, therefore, the government is required to improve the existing system of generation and transmission of electricity, by taking all necessary steps, including clearing of circular debt, etc., so that electricity can be generated to the maximum capacihttp://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C31%5Cstory_31-3-2012_pg1_1 Page 1 of 3

Daily Times - Leading News Resource of Pakistan - Court orders NAB to take action against Raja Pervez Ashraf

12/15/12 11:58 PM

ty. All the government functionaries, including the ministers for water and power holding charge in 2006 and onward and from 2008 to onward, during whose tenure the RPPs [Rental Power Projects] were approved/set up and minister as well as finance secretary holding the charge when the down payment was increased from 7 percent to 14 percent, prima facie, violated the principle of transparency under articles 9 and 24 of the Constitution and Section 7 of the Act 1997, therefore, their involvement in getting financial benefits out of RPPs by indulging in corruption and corrupt practices cannot be overruled. Consequently, they are liable to be dealt with under the NAB Ordinance 1999 by the NAB, the judgement said. The court also said all functionaries of PEPCO, GENCOs, PPIB and NEPRA along with sponsors (successful bidders) who had derived financial benefits from the RPPs contracts were, prima facie, involved in corruption, therefore they were also liable for both civil and criminal action. The court ruled that in pursuance of its orders passed from time to time, Rs 8,689,224,000 (8 billion 689 million 224 thousand) had been recovered from the RPPs on account of advance payments and interest, whereas, proceedings for recovery of interest amounting to Rs 445,496,000 (445 million 496 thousand) from Young Gen and the interest from Reshma, were still pending.
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Daily Times - Leading News Resource of Pakistan - Court orders NAB to take action against Raja Pervez Ashraf

12/15/12 11:58 PM

The judgement also said the Finance Ministry, WAPDA, PEPCO and GENCOs were responsible for causing huge losses to the public exchequer, which run into billions of rupees by increasing down payments and buying electricity on higher rates from RPPs. The court observed that by accepting the Agriculture Development Banks report, 9 of 19 RPPs were allowed to operate. But 6 of the 9 RPPs were discontinued either having been signed off or having failed to achieve the target whereas remaining RPPs, Karkey, Naudero-I and Gulf are functioning, but they are producing electricity much less than their generation capacity. The court said only Gulf was producing electricity close to the agreed capacity. The role of the petitioners, Faisal Saleh Hayat, Federal Minister for Housing and Works and Khawaja Muhammad Asif, MNA is also laudable; they being the holders of public offices, highlighted the instant scam of corruption and corrupt practices and fulfilled their commitment to the Constitution as well as the general public whose rights enshrined in Articles 9 and 24 of the Constitution were being violated, the judgement read.

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