The Senate's Standing Committee on Water and Power on Friday termed the privatisation of Karachi Electric Supply Company (KESC) unlawful and sought details of the 'questionable deal' from the Privatisation Commission.
Presided over by Senator Zahid Khan, the committee also sought a briefing from the Ministry of Water and Power, National Electric Power Regulatory Authority (Nepra), National Transmission and Dispatch Company (NTDC), the Finance Ministry and Privatisation Commission regarding amending the 2009 agreement signed between the government and the Abraaj Group on the Implementation Agreement of 2005.
The committee expressed annoyance over KESC's privatisation and said that the entity had been sold illegally and the main purpose was to benefit a few influential personalities. Officials of the Privatisation Commission told the committee that the agreement for the privatisation of KESC had been signed by the Ministry of Water and Power and Privatisation Commission had no role in it.
Under the privatisation deal, 73 percent of shares had been transferred to Al-Jomaih who subsequently sold these shares to Abraaj. Senator Zahid khan said that Privatisation Commission was also part of this game because they did not take any action on the illegal and unfair privatisation of KESC.
Secretary Water and Power Nargis Sethi said that she was not in a position to give any reply but she said that the Ministry was at fault, as KESC's privatisation was not the right decision. The Committee asked officials of the Privatisation Commission to identify who was responsible for the privatisation and under whose directions this illegal and unfair deal had been struck.
Joint Secretary Water and Power Zargham Eshaq Khan who is Managing Director Pepco told the committee that KESC signed amended Implementation Agreement(IA) with the Ministry and under this agreement company had to invest an amount of $361 million over a period of three years in generation, transmission and distribution systems.
Senator Humayun Mandokhel suggested taking strict action against officials responsible for the privatisation of KESC adding that he would take this case to NAB if the Water and Power Ministry did not initiate any action in this regard. Senator Shahi Syed also raised several questions regarding the privatisation of KESC and asked the officials to submit their replies by the next meeting of the committee.
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