'Implementation' bench on dams formed

10 Jan, 2019

The Supreme Court Wednesday constituted an 'implementation' bench for supervision of progress on the dams' construction. A special committee, comprising two directors of State Bank of Pakistan (SBP) and an official of the Supreme Court, is formed to look after the affairs related to the Dam Fund and the investment of amount collected for dams' project. The Chief Justice said money would not be withdrawn without permission of the committee.
The bench appointed two amici curiae (friends of the court) Makhdoom Ali Khan and Dr Pervaiz Hassan to assist regarding Dam funds utilisation. Chairman Federal Board of Revenue Jehanzeb Khan was directed to give proposal if instead of imposing withholding tax on mobile phone money recharge, any surcharge can be imposed on it.
They were directed to submit reports in the first week of February. They have been also directed to submit a monthly report before the implementation bench.
A five-member bench, headed by Chief Justice Mian Saqib Nisar heard the case related to the progress on dams' construction.
The governor SBP stated that so far Rs 9.1 billion have been collected in Dam Funds. He said that Rs 1.7 billion was sent from abroad, adding the overseas Pakistanis from about 50 countries have sent money. He said the amount will be invested in treasury bills as there is no risk in it.
The chairman FBR informed the court that the collection on the mobile phone charge and the money received from the bottling and beverage companies shall go to the Consolidated Funds under the Article 78 of Constitution. He said there is a judgement of the Supreme Court in this regard and according to that, tax or cess could only be levied through the Parliament.
He said if the Parliament passes law that the financial raising from any head will be for the purpose of the Dams, it will go to the Consolidated Funds, adding that the government would then be bound to pay every money collected for dams construction to the Dam project.
The court noted that for Neelum-Jhelum project money is collected in the name of Neelum-Jhelum surcharge and goes to the Consolidated Funds and from there the money is used for the same project.
The Chief Justice proposed to exclude withholding tax on mobile phone money recharge and impose Dams surcharge on mobile phone cards, asking if the money can be utilised for the Dams fund. The chairman said for that purpose, the Parliament has to make a law.
Chairman Wapda, Lt Gen Muzammil Hussain (retd) said that they have decided to engage 40% local and 60% foreign consultants for the project. He complained that media is questioning local-foreign consultants ratio.
He said that a detailed financial plan for the Mohmand Dam has been prepared; the contractor mobilisation will start in March 2019, while all work on the Mohmand Dam will be completed by June 2024.
He said a Chinese company has assured to get some money from the Bank of China and for that the company has given letter of credit. The government would provide Rs 114 billion under the PSDP allocation, Rs 29 billion would be Wapda's equity and Rs 41 billion would be taken from local banks. He said, "We need Rs 90 to 95 billion and out of the amount Rs 72 billion has come in the form of letter of credit by the Chinese company. He requested the court to direct the government to put dams on the priority list in the PSDP allocation. The Chief Justice asked from the attorney general to ask the government about the PSDP allocation for the dams. AGP Anwar Mansoor Khan replied that he has to seek instructions from the Ministry of Finance.
He said that 844 acres of land has been acquired for Mohmand Dam and Wapda from its own resources has disbursed Rs 684 million among the private people from whom the land is acquired.
The Chief Justice directed the chairman to submit periodic reports every month.
At the outset of proceedings, the AGP informed the court that according to PEMRA report, 23 TV channels held 76 talk shows regarding the dams' construction and the Dams Funds. Most of the programmes were in favour of dams and promoted the cause.
"The media played a vital role in the campaign for dams' funds and construction," the Chief Justice said.
However, Justice Ijazul Ahsan said that there are some media persons who are maligning the Dams' Funds, adding; "Malicious programmes are run and there is a mechanism to target some personalities related to the construction of dams."
The bench criticised G News anchor Gharida Farooqi for 'maligning' the Wapda chairman and dams. The court accepting her apology asked her to be careful in future.

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