'Changes in KESC set-up essential'

31 May, 2009

'The change of faces is not likely to make any improvement in the present electricity crisis, but it is essential that major changes are made in the present policy and set up of the company.' Welcoming the appointment of Wiqar Siddiqui as the Chairman of KESC in place of a Saudi Shaikh, the General Secretary, KESC Share Holders Association (SHA), Choudhary Mazhar Ali said.
According to a press released issued by SHA on Saturday, he said that entire Board of Directors and the CEO are to be replaced since they have totally failed to perform their duties. There should be Three Government Directors on the board but presently only one from the Ministry of Power is nominated and the other two are not even nominated.
The existing members, who are active, are also busy in making money one way or the other, he added. The General Secretary suggested that the representation into the board of directors should be given to the employees and officers of the company, Minority Share Holders, Karachi Union of Journalist (KUJ), Karachi Chamber of Commerce, City District Government Karachi (CDGK) and Site Association.
He also suggested that a senior retired engineer from Pakistan Armed forces be appointed as CEO. Mazhar Said the most important jobs were to reduce the theft of electricity and curtail the unproductive expenditure, which included cutting down the high salaries being paid to certain officers. These steps would ultimately improve the recovery of outstanding dues from the consumers and settle all the legal cases pending in the courts out side the courts.
He said after taking above actions, emphasis should be on increasing the generation capacity of the company by expediting the work on Bin Qasim project and restoration of DCL. The defects of KTPS Units should be examined and removed on the earliest.
Further, said the company's recent issue of Right Shares was a delayed action, but a right one to raise the funds required to meet the shortfall in the Company. He said that the Share price of the company is less than three rupees a share but the right shares offered was at Rs 3.50 per share.
Due to the difference of the price, there was not going to be any public participation and all the four billion Shares will have to be purchased by the three major partners like the KESC-Power, Nasir Ul Marri and the Government of Pakistan, which will fetch Rs 14.180 billion. He said this amount, though not sufficient to avert the present turmoil but will help to improve the present situation if other measures suggested above are also taken.-PR

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