The Supreme Court on Tuesday asked counsels for Walters Power International to consult the concerned authorities and record a statement on Wednesday (today) about return of total amount along with mark up which they had taken as advance payment over Nadudero-II and Guddu power projects.
A three-member bench consisting of Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalil-ur-Rehman Ramday took up a suo motu case identical with the main case over the issue of Rental Power Plants (RPPs). The Court has taken notice on a newspaper story, saying that Nepra detected irregularities in advance payment to Naudero-II and Guddu projects.
The story further claimed that Nepra declined to approve tariff for Naudero-II after discovering that the projects' equipment belonged to Guddu Rental Power Project. The Walters Power International had entered into contract for completion of $52 million natural gas-fired 51 megawatts power plant in Naudero II, while working upon a second project in Guddu, which was expected to cost about $70 million and produce 110MW.At the outset of proceedings, Shahid Hamid, counsel for Walters Power International, prayed the court to grant him few days as he would be consulting David Walters, president of WPI, in US, over return of principle amount and mark up issue.
The Chief Justice told him to consult his client and make statement about return of the amount along with bank interest. Faisal Saleh Hayat, a PML-Q parliamentarian and petitioner, raised objection by saying that they had violated the contractual agreement and should be held responsible for violation. The Chief Justice told him that it was not their job, however, the main case was still pending and they would have to deliver their verdict.
"We have announced our charter yesterday, the people will get tired of taking bribes but the Court would not feel bogged down in taking notices of such issues," he added. Contrast The Chief Justice expressing his displeasure over arguments of Shahid Hamid said, "What are being shown on TV about Vikileaks do not you know. We are an independent country, do not impress us by mentioning foreign influential people."
Shahid Hamid apprised the bench that David Walters, a US citizen and former Oklahoma governor, held million of shares in power sector and was not involved in any corruption case. He said the contract for Guddu power was signed on March 4 this year. He said under a mutual contract, the equipment, which had to be re-exported, was transferred to Naudero II though in the usual circumstances it did not happen. He said it was a kind of renovation of contract, which took place in October. The Chief Justice observed that it was their liability to return the amount with bank interest instead leaving it for the JENCO.
To bench's query, Shahid replied that JENCO, another power company, had not fulfilled agreement with them as they failed to submit bank guarantee and determination of tax issue, therefore, they had to walk out of the contract. He further apprised that the company had given guarantee for advance payment on March 12 and got an amount of $11,36,666 in return on April 8 this year with total rental value of $80.5 million.
He said the Naudero power plant II would have to generate 51 megawatts. To bench's query he admitted that due to an end to contract it had been capped. The Chief Justice pointed out that a news appeared on December 1 and the contract was withdrawn on December 4. Dr Parvaiz Hussain, another counsel, told that contract was rescinded in accordance with law and had nothing to do with the date. He said that PEPCO had not fulfilled its agreement over provision of fuel, site etc. While JENCO deputy chairman Abdul Malik apprised the bench that they were not required to look into the equipment while entering into a contract.
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