Chairman Privatisation Commission Muhammad Zubair has been unable to satisfy the members of a sub-committee on finance with respect to evaluation of the assets and liabilities of the failed transaction of Heavy Electrical Complex (HEC).
The members of the sub-committee on finance convened by Senator Kamil Agha questioned the process adopted regarding HEC privatisation especially converting liabilities of the company into assets and to offer it to the Cargil Holding against a cash payment of Rs 250 million.
A member of the committee, Mohsin Aziz, asked whether raw material and finished goods cost of Rs 480 million was included in the price of the HEC.
Zubair stated that M/s Cargil holding Limited (CHL) offered to take up all the liabilities of the company, retain the employees and pay Rs 250 million in cash to Privatisation Commission.
Chairman and committee members termed the entire process of HEC ''strange story'' when Secretary Ministry of Industries said that process of HEC privatisation was not initiated on the recommendations of the ministry. The decision of privatisation was approved in 1999 by the then Prime Minister.
Zubair said the Privatisation Commission has nothing to do with the decision of privatisation of the HEC. He further stated that a meeting of the Cabinet Committee on Privatisation had decided privatise HEC in 2013.
Mohsian Aziz said the government has decided to privatise the HEC at a very low price and information about CHL was incomplete as the company was registered at one lakh rupee.
Aziz said that there was a huge difference between fixed and current assets. The convenor of the committee stated that the Privatisation Commission has provided some material in its comments while answers to some questions were not provided.
The committee decided that reports would be prepared in the light of material provided by the Privatisation Commission for onward submission to the main committee.