Water and Power Development Authority Chairman and Pakistan Electric Power Company Managing Director are reportedly levelling corruption charges against each other citing award of contracts to favourites by both.
Wapda Chief Shakeel Durrani is a retired Federal Secretary whereas Pepco Managing Director Munawar Baseer Ahmad joined the entity after retirement from Sui Southern Gas Company Limited following bifurcation of water and power sectors of Wapda.
Background interviews and official documents available with Business Recorder reveal that contracts for the setting up of rental power plant at Guddu and procurement of parts for Mangla dam raising projects created clash of interest between both the top executives.
The issue of kickbacks in procurement of 1.5 million electricity meters is yet to be resolved while at the same time World Bank also termed Discos procurement mechanism as flawed. "Both the top guns are consuming all their energies on defaming each other which is unfortunate," said an official on condition of anonymity.
An independent source, however, was of the view that this was basically a war between two private sector companies ie Progas Pakistan Limited and Associated Group. Progas is said to be the grieved party, which is reportedly backing Wapda Chairman whereas Associated Group is backing Pepco MD.
A top official of the federal government had confirmed that Mohammadmian Soomro wanted to replace Munawar Baseer for not implementing his directives but failed to exercise his powers due to some 'unknown' reasons. Giving the background, the sources said that in the first bidding for Guddu rental power plant, Wapda had awarded the contract to PPL but when Baseer took charge as Pepco MD, he rejected the decision.
According to the standard procedure, when a tender is opened it is assumed that the bid of so and so firm was lower. However, after re-evaluation, it could be established which contender was the lowest in real terms and on what basis contract was awarded.
The sources said when the first tender for Guddu rental power plant was opened, Progas bid being lower won the contract. However, when Pepco was established, it re-tendered the project and awarded the contract to Associated Group of Iqbal Z Ahmad, an influential industrialist.
Wapda is of the view that the contract should have been awarded to PPL rather than Associated, the sources maintained. "Baseer also lodged a complaint against Shakeel Durrani, saying that procurement of parts for Mangla dam project was not transparent," the sources added. However, documentary evidence was not provided to this scribe.
PSO to Wapda Chairman, Brigadier Mukhtar Ahmad (Retd) wrote a letter to federal government and the draft was approved by Durrani, against the contract award to Associated Group. According to the letter, Progas Pakistan Limited has levelled some allegations regarding Guddu rental power plant.
"The subject has also been discussed by Wapda Chairman with the caretaker Minister for Water and Power, Tariq Hamid (ceased to hold office on March 25) and Secretary, Ismail Qureshi on few occasions," PSO claimed in the letter.
Although Wapda was not concerned with this issue since it relates to Pepco and the Ministry of Water and Power, yet in the interest of transparency and merit, it has been suggested that a committee may be constituted to look into the matter, said the letter.
Wapda thought it appropriate to refer the case to Public Procurement Regulatory Authority (PPRA) for its views and the same documents had also been sent to the Presidency and Prime Minister secretariat. It was not known if Munawar Baseer did a tit for tat regarding Wapda chairman.
The project concept clearance for 700-800 MW, combined cycle power plant at Guddu was submitted on June 23, 2007 for approval of the GoP. The Energy Task Force headed by Deputy Chairman Planning Commission, Dr Akram Sheikh, in its meeting held on November 14, 2007 decided to implement the project in the public sector on fast track basis and directed Pepco to proceed with requisite formalities, revealed official documents.
A spokesman for the PPL confirmed that the issue has been taken up with the concerned authorities. Both Wapda and Pepco bosses could not be reached for comments.
The message had been conveyed to Usman who claimed to be associated with the Pepco MD, Sarfraz Khan, Staff Officer to Wapda chairman, Abid Saeed, Public Relations Officer and Pepco spokesman Tahir Basharat Cheema. It is also learnt that Finance Secretary Dr Waqar Masood had also criticised Munawar Baseer at a recent ECC meeting for seeking permission to start rental power projects in public sector.
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