ISLAMABAD: In a landmark judgement, the Supreme Court of Pakistan on Friday rescinded all Rental Power Plants contracts, declaring them illegal and non-transparent. The apex court issued directives to Chairman National Accountability Bureau (NAB) to proceed against all persons, including former minister for Water and Power Raja Pervez Ashraf, who caused billions of rupees loss to the national kitty.
---- Supreme Court also orders action against ex-minister, others
The NAB was also directed to submit to Registrar office for the judges' perusal a fortnightly progress report regarding actions taken against the persons involved in corruption.
A two-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain announced the operative part of the 90-page reserved judgement. The verdict said that the RPPs mode of electricity generation had proved to be a total failure and incapable of bridging the electricity supply and demand gap on a short-term basis.
The verdict held finance ministry, Wapda, Pepco and Gencos responsible for causing a huge loss to the national exchequer by purchasing electricity on higher rates from those RPPs which failed to achieve COD within stipulated time periods in terms of performance guarantees.
The judgement said the PPRA Rules had been violated as well as the principle of transparency and fair and open competition was not followed, "so the contract of RPPs are ordered to be rescinded forthwith and all the persons responsible are liable to be dealt with for civil and criminal action in accordance with the law."
The apex court reserved its judgement on December 14, 2011 on the petitions of federal minister for housing and works Makhdoom Syed Faisal Saleh Hayat and PML-N leader Khawaja Asif in RPPs' case. It is worth mentioning that during the adjudication of the case, in pursuance of court orders from time to time, a sum of Rs 8.689 billion including interest, granted as mobilisation advance, was recovered. However, proceeding for the recovery of interest amounting to Rs 445.496 million from two RPPs - Young General and Reshma - are still pending.
Chief Justice Iftikhar Muhammad Chaudhary, while issuing directives to Chairman NAB, said that 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 were approved and secretary finance holding the charge when mobilisation advance rate was increased from 7 to 14 percent, are liable to be dealt with under the National Accountability Ordinance 1999 by the NAB.
"All the functionaries of Pepco, Gencos, PPIB and Nepra along with sponsors (successful bidders) who had derived financial benefits from the RPPs contracts are, prima facie, involved in corruption and corrupt practices, therefore, they are also liable for the civil and criminal action," said the CJP in his directions to Chairman NAB. In the judgement, the Chief Justice said that Bhikki RPP was paid Rs 8698 million against 811.605mkWh electricity whereas Sharaqpur RPP was paid an amount of Rs 13941.82 million against 1520.420 mkWh electricity.
He added that with regard to RPPs set up since 2008, out of nine RPPs to whom advance payment were made, six RPPs including Techno Sahuwal, Guddu, Reshma, Young Gen, Naudero-II and Techno Sammundri, have returned advance payments in pursuance of court orders. However, mobilisation advance payment made to Karkey, Gulf and Naudero-I has not been returned so far.
It was categorically stated in the judgement: "Despite down payment of billions of rupees to the RPPs, Karkey is generating 48.33 MW against capacity of 231 MW and Naudero-I is generating 9.16 MW against capacity of 51MW; whereas, Gulf is generating 50.08 MW against capacity of 62 MW".
It added that Pakistan Power Resources (Piranghaib, Multan) did not generate electricity at all, although a down payment of US $14.58 million was made to it, "which has not been returned." The judgement revealed: "Though, RPP Reshma has returned the down payment, yet it is still functioning and generating 15 MW only against its capacity of 201.3 MW".
The verdict disclosed that the cost of each electricity unit produced by the RPPs is on a very high side as Karkey's is ranging from Rs 35 to Rs 50, Gulf's Rs 18 to Rs 19, Naudero-I's Rs 12 to Rs 19, adding that such rates constituted a grave violation of an ECC decision of September 10, 2008 which underscored the need for making efforts towards lower tariff through RPPs.
"All the RPPs are collectively generating just 120 MW of electricity, a huge amount has been paid to Karkey, Gulf and Naudero-I and if they are allowed to continue for the left over term, further huge amounts would be paid to them at expense of the public exchequer with no corresponding benefit to the consumers," the Chief Justice and Justice Khilji Arif Hussain stated in the judgement.
The verdict appreciated the role of petitioners Makhdoom Faisal Saleh Hayat and Khwaja Asif. Despite holding public offices, they highlighted the instant scam of corruption and corrupt practices and fulfilled their commitment to the constitution, according to the judgement.
Comments
Comments are closed.