The Sui Southern Gas Company (SSGC) has said that Karachi Electric Supply Company (KESC) has given an erroneous impression in the press that it has been making regular payments to SSGC to help settle its outstanding dues amounting to over Rs 20 billion.
The SSGC, in a press release issued here on Wednesday said that KESC has claimed that since January 2010 it has paid over Rs 18.3 billion to SSGC against the purchase of gas worth Rs 20.3 billion during this period. What KESC has conveniently failed to mention is that it was also liable to pay Rs 5.85 billion of monthly instalment of Rs 0.65 billion per month from January 2010 to September 2010 and Rs 1.9 billion on account of Late Payment Surcharge (LPS) during the same period. In addition, KESC was in default of Rs 8.64 billion from July 2009 to December 2009 although in June 2009, it had already inked a payment agreement with SSGC to pay the then outstanding balance of Rs 12.23 billion.-PR