Boards of Discos: Power Division fails to discourage ‘conflict of interest’

ISLAMABAD: The Power Division has reportedly failed to discourage ‘conflict of interest’ in Boards of power Distribution Companies as most of the incumbent Boards have deep links with ruling political parties.

Chairman of Islamabad Electric Supply Company (IESCO), Engineer Qamarul Islam Raja, has been elected Member National Assembly but has not resigned from office. Likewise, Chairman, Multan Electric Power Company, Sardar Jamal Khan Leghari, is the brother of newly appointed Minister for Power, Sardar Awais Ahmad Khan Leghari.

A precedent is already available with the Power Division: former caretaker Minister for Power and Petroleum Muhammad Ali’s wife ,a member of CPPA-G, resigned immediately from the Board after her husband took oath as Minister.

The Boards of Gujranwala Electric Power Company (GEPCO), Lahore Electric Supply Company (LESCO) are Faisalabad Electric Supply Company (FESCO) are dominated with PML(N) affiliates along with some share of PPP whereas Discos of Sindh are filled with PPP loyalists. Likewise, QESCO and PESCO mostly have Boards members with roots in political parties.

According to the Prime Minister, Discos are making Rs 400 billion financial loss per annum. Main reason of this huge loss is corruption, incompetence of Management and Boards and massive theft.

According to performance evaluation reports of Discos for the year 2022-23 prepared by NEPRA, low recovery ratios have effectively crumbled the revenues beyond acceptable levels, resulting in loss to national exchequer of around Rs. 263 billion.

According to sources, former caretaker Minister for Power Muhammad Ali ordered the Intelligence Bureau (IB) to investigate political links of each Board Member and Chairman of each Board. His objective announced in his press conferences was to replace the Boards of Discos, but he did not carry this through.

The issue of Discos Boards was debated in the erstwhile Senate Standing Committee of Power, where it was noted that many Boards Members cannot even write an application in Urdu.

Clause 11 (h) of the SOE Act, 2023, which is related to disqualification of Independent Directors, stipulates that a member of the Majlis-e-Shoora or a Provincial Assembly is not eligible to become a member of a Disco Board.

In one of the meetings of Senate Standing on Power the then Chairman inquired from NEPRA Chairman as to what should be the criteria for selection of members of boards of Discos and the latter responded expertise in their respective sectors.

The Committee members raised questions about the eligibility of some members of Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO) and Sukkur Electric Supply Company (SEPCO).

Chairman Standing Committee also raised an objection on one of the Members of MEPCO due to conflict of interest. Secretary Power Rashid Langrial pledged to investigate the matter and report to the Committee.

In Mepco, one of Board member reportedly owns IT companies that have got contracts from power sector companies. It was also noted that head of CNG Association of Bahawalpur has been appointed as a member of the board and an official of the Agricultural Development Bank is also a board member.

Copyright Business Recorder, 2024