Senate Standing Committee on Power headed by Senator Fida Muhammad on Friday opposed Asian Development Bank's (ADB$ 500 million Advanced Metering Infrastructure (AMI) project to two power Distribution Companies (Discos), saying the project is a waste of national exchequer.
The committee's comments came at a time when the Power Division is launching the project in Islamabad Electric Supply Company (Iesco) and Lahore Electric Supply Company (Lesco).
"Don't waste national exchequer on AMI meters as these are not an alternative to ABC cable," said Senator Nauman Wazir Khattak. He said ABC is the only solution to 'hooks' (kunda system). However, Chief Executive Officer (CEO), Iesco said that electricity thieves would find new ways to hook up to ABC cable.
Additional Secretary Power Division, Munir Azam informed the committee that AMI metering project is already in the court as a local company has challenged it; and some sitting officials of Power Division have also opposed ADB funded AMI project.
The committee grilled the officials of Power Division and CEO Iesco during discussion on embezzlement worth millions of rupees in billing department of power utility. CEO, Iesco, Shahid Iqbal Choudhry informed the committee that a telephone call was received by General Manager Customer Services (CS) from consumer Babar Nawaz of Diamond Floor Mill, Texila for verification of bill amounting to Rs 15,93,987 paid on June 27, 2019 in Bank of Punjab Blue Area branch, Islamabad. The matter was referred to CSO (P) No. 1 for verification of payment. Initially, the amount was verified as scrolls of same amount was available in CSO 1 office, and later on the dealing officer was directed by the Manager (CS) to get it confirmed in writing from the bank.
The matter was pursued by Manager (CS) with the concerned CSO to verify the payment from the bank by personally visiting the office and in writing. When the officer visited the bank branch, the manager straight away denied the issuance of scrolls from his branch and declared the scroll as bogus.
The bank scrolls of June 27, 2019 amounting to Rs 43 million approximately were not verified by the Manager BoP, Islamabad.
Upon confirmation of Manager BoP that scrolls of June 27, 2019 are bogus and not issued by the bank management CSO (P) reported the matter to CEO on July 22, 2019. On receipt of report of CSO (P) a five-member inquiry committee was constituted by DG HR headed by Muhammad Ayub, Chief Engineer, CSD.
The committee held the following officials responsible for purportedly committing the fraud: (i) Muhammad Naeem, the then CSO-1 Islamabad; (ii) Khalid Mahmood (Commercial Assistant); (iii) Muhammad Rafique ( the then Accounts Assistant); (iv) Waqas Javed ( sweeper) in Iesco Computer Centre; and (iv) Gul Khitab (private individual).
According to CEO, Iesco, the following officers/officials were "responsible" for negligence in duties: (i) Musharraf Ikram CSO(P) 1, Islamabad from October 2018 to June , 2019;(ii) Muhammad Sarfraz, DAO O/O CSO Islamabad-1;(iii) Anwar Saeed Assistant Manager Banking O/O Finance Directorate;(iv) Ayaz Baig, Accounts Officer O/O, Finance Directorate and;(v) Yasir Pervez Accounts Assistant O/O Finance Directorate.
According to the CEO, Iesco, the following officials/Officers were suspended on account of "misconduct": (i) Muhammad Naeem the then CSO(P) 1, Islamabad; (ii) Muhammad Rafique the then Account Assistant; (iii) Muhammad Sarfraz, DAO; (iv) Rashir Ali, Commercial Assistant; (v) Malik Saeed Abbas DAO; (vi) Anwar Saeed Assistant Manager Banking; (vii) Ayaz Baig, Accounts Officer; (viii) Yasir Pervez Accounts Assistant; and (ix) Asif Rehman Accounts Assistant.
Khalid Mehmood, Commercial Assistant, CSO and Waqas Javed, Sweeper, Iesco computer centre Isb have been terminated.
Bills were issued to 269 MDI (Maximum Demand Indicator) consumers' of an amount of Rs 135 million for payment up to August 9, 2019. The amount pertaining to the remaining consumers is being debited in their electricity bills.
The committee was informed that FIA has arrested four accused i.e Muhammad Naeem, the then SCO-1, Islamabad; (ii) Khalid Mahmood Commercial Assistant; (iii) Muhammad Rafique, Accounts, Accounts Assistant; and (iv) Asif Rehman, Accounts Assistant. One of the accused has been arrested at Peshawar airport after return from Hajj.
CEO Iesco informed the committee that the practice of bill payment through fake scrolls has continued for the last three to four years.
Chairman Standing Committee, Fida Muhammad questioned the negligence of Iesco querying why the company had no clue of such a high level of embezzlement for the last three or four years.
Additional Secretary Power Division informed the committee that a sub-committee of Public Accounts Committee (PAC) has directed the Power Division to conduct audit of pension funds.
The Standing Committee directed the Power Division to get verification of scrolls of all the Discos. Chairman Standing Committee maintained that such fraud would be in practice in other Discos too.
Senator Nauman Wazir expressed dissatisfaction at the performance of Power Division, saying that the Ministry has done nothing so far, and requested the authorities to direct Discos to check their records. He questioned why the private audit firm did not detect such fraud.
He further questioned why the AGP's audit officers failed to find embezzlement on such a large scale, adding that if a balance sheet is not at par with previous years then why was this fraud not unearthed. He proposed that Discos should consult PRAL of FBR for online billing data to avert such kind of frauds in future.
Munir Azam, Additional Secretary , Power Division informed the committee that Secretary Power Division, Irfan Ali has already directed the Discos's CEOs to verify their data and submit reports within 15 days.
Senator Siraj-ul-Haq of Jamaat-e-Islami facetiously proposed that the same "intelligent" person who did this embezzlement be invited to the meeting to get his feedback to stop such fraud in future.
The Standing Committee directed all the Discos to submit details of such cases unearthed during the last ten years including Afghan Refugees camps.
CEO, Tesco briefed the committee that all steel mills in tribal areas are shut down due to recent taxation measures taken by the FBR. He stated that 402,000 domestic consumers are without meters and they are being charged on average the rate of Rs 13.70 per unit. Federal Government pays subsidy to Tesco's domestic consumers. Besides others, the meeting was attended by Senator Ghaus Khan Niazi and Senator Maulvi Faiz Muhammad.
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