Anti-corruption initiative faces setback: FIA allegedly starts colluding with Discos’ officials

ISLAMABAD: The government’s initiative to combat corruption in power Distribution Companies (Discos) by appointing officials from the Federal Investigation Agency (FIA) is facing serious challenges as FIA officials are allegedly colluding with Discos’ officials to make money from corrupt practices, well-informed sources in Interior Ministry told Business Recorder.

These accusations were formally communicated by the Ministry of Interior to the Power Division which oversees the Discos. The Interior Ministry stated that mismanagement and corruption in these companies have been ongoing issues.

“The government has implemented various administrative measures, including the attachment of FIA officials for effective oversight. However, this has not produced the desired results, and Disco staff continue their corrupt practices in collaboration with FIA officials,” the communication noted.

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To investigate the matter, the Interior Ministry has formed a high-level committee led by the Additional Secretary-1 of the Interior Ministry, including officers from both the FIA and Power Division. The Additional Secretary-1 of the Power Division has been designated as the representative for this committee.

Sources indicate that allegations of corruption against FIA officials in Discos have been a topic of discussion between the Power Division and senior FIA leadership. However, the FIA has denied these allegations concerning its officials involved in Performance Monitoring Units (PMUs) within the Discos.

Initially, there was a proposal to establish PMUs in loss-making Discos under senior officials from the Pakistan Army. However, this inclusion was not approved due to opposition from various channels. At the time the PMU proposal was put forth, the Power Division argued that multiple strategies had been tried in the past, but efforts to appoint CEOs with the necessary skills and expertise to revitalize these companies had failed.

The Power Division emphasized that Discos were created for corporatisation, leading to privatisation aimed at improving the distribution system. Unfortunately, rampant mismanagement has derailed this process, making these entities a significant financial burden on the national exchequer.

To minimize losses in the power sector, the government has launched a campaign against electricity theft and recovery from defaulters. The Apex Committee of the Special Investment Facilitation Council (SIFC) convened on October 4, 2023 agreed to establish an Anti-Theft Taskforce. This task force will include officers from law enforcement, district administration, and intelligence agencies, and will be attached to Discos experiencing significant losses, such as QESCO, PESCO, SEPCO, MEPCO, and HESCO.

However, concerns have been raised that the weak leadership of these Discos may hinder achieving desired results. Specifically, Discos like HESCO, SEPCO, PESCO, and QESCO are facing serious management and administrative challenges that could significantly impact their financial stability.

In April 2024, FIA informed the Power Division that following the communication from the Office of the Director General, FIA (HQ), Islamabad, on October 11, 2023, and upon the recommendations of the relevant Additional Director Generals (ADGs), the following officers were attached to the CEOs of Discos for the anti-theft and recovery campaign: (i) Syed Rizwan Shah, Deputy Director FIA, AML-C Peshawar- Peshawar Electricity Supply Company (Pesco); (ii) Abdul Ahad Sangri PSP, Additional Director, FIA Crime & AHT Circle Sukkur- Sukkur Electric Supply Company (SEPCO); (iii) Syed Wasi Hyder PSP, Additional Director, FIA CC Hyderabad - Hyderabad Electric Supply Company (Hesco); (iv) Khawaja Hammad ur Rehman, Deputy Director FIA Multan Zone - Multan Electric Power Company (Mepco); and (v) Mian Muhammad Sabir, Deputy Director FIA anti-Corruption Circle, Lahore - Lahore Electric Supply Company (Lesco); Vi; Muhammad Afzal Khan Niazi, Deputy Director, FIA, ACC Islamabad – Islamabad Electric Supply Company (IESCO); (vii) Shabbir Ahmed Khan, Deputy Director CC Faisalabad – Faisalabad Electric Supply Company; (viii) Zawar Manzoor, Deputy Director FIA CC Gujranwala- Gujranwala Electric Power Company (Gepco); (ix) Abdul Hayee Khan, Deputy Director, FIA CC DI Khan (Kohat Zone) – Tribal Areas Electricity Supply Company (TESCO); and (x) Saeed Ahmed Memon Deputy Director, FIA Quetta- Quetta Electric Supply Company (QESCO). Additional Director General ACW and Additional Director General Anti–Corruption (ACW FIA, HQ, Islamabad will be focal persons to coordinate with Power Division.

Copyright Business Recorder, 2024