ISLAMABAD: M/s Nishat Chunian Power Limited (NCPL), owned by tycoon Mian Mansha, has demanded of the Power Division to pay the withheld amount of Rs 8.35 billion as the National Accountability Bureau (NAB) has terminated investigations against owners/management of the power company and officials.
In a letter to Secretary Power, NCPL stated that on the basis of an ongoing NAB investigation at that time, amounts totaling Rs 8.35 billion were held back by the Power Purchaser, ie, Central Power Purchasing Agency -Guaranteed (CPPA-G) and not paid to the Company in accordance with the payment mechanism set out in the Master Agreement of February 11, 2021.
An instrument in the form of an undertaking of November 15, 2021 was also obtained from the Company for the said purposes.
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According to NCPL, NAB has now terminated its investigation against owners and management of the Company as conveyed through NAB’s letter, adding that as the NAB investigation has now been terminated, the Power Purchaser/CPPA-G should pay to the Company the withheld amount totaling Rs 8.36 billion and return the undertaking, as it has become ineffective.
Furthermore, the power company noted that pursuant to the Power Purchase/s obligation to make timely payment under the Power Purchase Agreement of November 13, 2007 (PPA), undisputed and due amounts cannot be withheld or deducted.
In this regard, it also noted that the remaining IPPs under the Power Policy 2002 with which the Payment Mechanism was executed by the Power Purchaser are fully paid. The continued withholding by the Power Purchaser of the withheld amount, even after the termination of NAB proceeding is contrary to the terms of the PPA and constitutes a discriminatory and selective action.
The Power Company reminded Secretary Power that it is a law that a Government department, authority/agency must always be consistent in its practices and determinations.
The NAB letter states that the case was inquired into against owners/management of NCPL, Officers/officials of National Electric Power Regulatory Authority (NEPRA) and Officers/ officials of Central Power Purchasing Agency and others under the provisions of NAO, 1999 on the following allegations “the owners/ management of M/s NCPL dishonestly and fraudulently produced falsified and deceptive financial/technical information at the time of tariff determination and obtained high electricity tariff on the basis of fake documents. The members and other officers of NEPRA Authority and CPPA-G in connivance with owners/management of M/s NCPL decided an exorbitant tariff for the power company that resulted into high price of electricity.”
The NAB said that keeping in view the facts and circumstances of the case with specific reference to invocation of arbitration, the Competent Authority has approved termination of investigation under section 31-B (1) of NAA at the NAB’s end and referral to the Ministry of Energy.
The NAB maintained that termination of investigation only related to the allegations. However, it will not affect any other case, if already under process and shall not prevent initiating any new case under the NAO, 1999.
Besides others, the NAB has also sent copies of its letter to former officials NAB and CPPA-G, Saeed-uz Zafar, Abdul Rahim Khan, Zafar Ali Khan and Syed Insaf Ahmad.
Copyright Business Recorder, 2024