A parliamentary panel has advised the Ministry of Energy (Power Division) to devise an effective and viable mechanism to deal with circular debt issue which has become a permanent feature of national power distribution system.
The subcommittee of the Public Accounts Committee of the Parliament which met under the chairmanship of MNA Syed Naveed Qamar advised this while discussing and reviewing audit paras of Energy Ministry for the year 2002-03.
The meeting was informed by the audit officials that the Energy Ministry paid Rs 1.24 billion on account of markup to Independent Power Producers (IPPS).
The secretary Power Division while briefing the participants said that the government is facing serious problems in the recovery of outstanding amounts against defaulters, adding that some cases have been lingering on in various courts for decades.
The committee members remarked on the revelation of the secretary Power Division that the lawyers hired by the ministry are enjoying huge amounts of money in shape of fee for doing nothing.
The secretary said that under the supervision of attorney general for Pakistan, the government has formed a panel to resolve such cases, adding reemergence of circular debt on regular basis is the real problem and as a result the government is unable to allocate required funds for court cases and other issues.
Member Committee Sherry Rehman said that 9 IPPs have moved courts on the issue of delayed payments which is a result of circular debt but the ministry has failed to give a viable plan to address the problem.
Audit officials said that Rs 1.24 billion amount paid by the ministry to the IPPs was a 14 years old issue to which the concerned ministry failed to give a comprehensive solution, adding that the ministry has to find a solution to the problem.
The panel directed the ministry to find a viable solution of the problem, saying that the matter could not be delayed forever. The panel was informed when General Zulifqar (retd) was the chairman of Water and Power Development Authority (WAPDA) the authority purchased non-customs paid vehicles in Federally Administered Tribal Areas (FATA) and multimillion rupees were additionally paid to a private contractor.
The committee said that his name must be written on blackboard for purchasing non-customs paid vehicles for a public entity in sheer violation of the set rules and regulations. The ministry officials said that the department for which vehicles were purchased exists no more and the officials who purchased the vehicles are retired; therefore, no action has been taken against them. The panel directed the Power Division, Ministry of Energy, to recover all outstanding amount within a month and report to the panel.
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