The Karachi Electric Supply Company (KESC)'s yearly loss of Rs 16 billion of the fiscal year 2007-08 would be discussed in the annual General Meeting to be held on November 29, Choudhary Mazhar, general secretary KESC Share Holders Association stated in a press release on Thursday.
He said that the company's yearly loss in the fiscal year of 2006-07 was Rs 12 billion. At the time of taking over the charge of the company in November 2005 the management of Aljamia Group had made promises of making the company profitable within three years time.
The group had also assured the shareholders that generation would be improved and beside that the T and D losses would be reduced to 20 percent from 34 within the period of three months, the statement said. Mazhar said that in November 2005 the share price of the company had stood at Rs 14 per share but the government had sold its 74 percent shares to KESC Power at a meager price of Rs 1.65 in view of the promises of improvement and investment to be made by the private owners.
Unfortunately the price of the company's share had come down to three rupees per share, the T and D losses had gone up to 38 percent and the Company was going down the drain every day coming, he added. Ali also said that generation capacity has been reduced by 5.15 percent deteriorating the distribution system. The statement said that loans worth 48 billion had been obtained only to get loan arranging commission by one of the directors.
The company has to pay Rs 40 billion to Wapda, SUI Northern and PSO for purchases made from them, the general secretary said. He said that a resolution to alter the by laws of the company of allowing directors to discuss and decide matters on phone was being brought before the general body meeting. During the past 12 months the directors of the company had only four meetings and in that too the chairman and deputy chairman did not participate, he added. He also said that it is a very strange situation. The company is in turmoil but the Directors who are enjoying all the facilities have no time to attend the meeting.-PR