THURSDAY MAY 02: NAB concerned at corruption in power sector

06 May, 2013

ISLAMABAD: A massive corruption in power sector is going on unnoticed due to the negligence of regulators, as they have completely failed in tightening the noose around the corrupts - pushing the country into darkness and bringing the industry to a standstill. This was stated by Chairman National Accountability Bureau (NAB), Admiral Fasih Bokhari (Retd) in a meeting held at the bureau's headquarters a few days back, documents available with Business Recorder revealed.
Sources confirmed that the issue of corruption in power sector was discussed in detail during a meeting of the bureau on energy sector with its chairman in the chair. The meeting was attended by representatives of National Electric Power Regulatory Authority (Nepra), Planning Commission, Ministry of Water and Power, Ministry of Petroleum and Natural Resources, Federal Board of Revenue (FBR), Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
Bokhari reportedly told the meeting that NAB was closely monitoring the energy sector through Ministry of Water and Power and Ministry of Petroleum and Natural Resources. "We've been closely monitoring the power sector [and] it has been established there is massive corruption going on in power sector and the regulators do not play their due role," a sources quoted him as saying during the meeting. According to the documents available with Business Recorder, the NAB chief said that NAB would initiate criminal proceeding against the electricity defaulters but the bureau would carefully approach them as there are groups which are very powerful and have destroyed the whole sector.
Zahir Shah, Director General (DG) NAB, informed the meeting that Discos have different lists of electricity defaulters which have been provided to water and power ministry and NAB. The amount provided to the Ministry is double as compared to amount/details provided to the NAB. Even a considerable number of defaulters either don't exist or fake in the lists provided to NAB. "By design, they are trying to conceal the line losses, theft," says the minutes of the meeting.
The Ministry of Water and Power and WAPDA were of the view that there was a gap between supply and demand of the electricity, Ministry of Petroleum and Natural Resources which has two wings of SSGCL and SNGPL have failed to provide gas supply, resulting in limited generation from installed capacity. Report on daily basis was required as to amount of revenue collected from the Discos but the banks were not reporting it. It was being reported after 4 to 5 days which was a serious issue because when one authority is collecting money on behalf of the other, it is to be credited in the relevant account on the same day.
Khawaja Muhammad Naeem, Member Tariff Nepra, declined to become part of load management and declare that this was the matter of Ministry of Water and Power. Chairman NAB asked Nepra to explain their responsibility from generation till the distribution and also inquired if they have any pressure. The representatives replied: "We have no pressure but basically we are looking generation, transmission and distribution."

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