NS and IK income and Taxes

[Silaaj]

Re: NS and IK income and Taxes

@arshad5

We had this situation when NS tried to renegotiate contracts with IPPs that PPP had allowed, all that happened was future investors stayed clear of Pakistan.

The question is not auditing payments as payments are made all the time and the PEPCO or NTDC would have their accounts audited all the time. The purpose seems to be to harass the IPPs and earn commission for the bureaucrats. The assumption behind auditing is that IPPs have been overpaid, so how would that be possible when government bodies have accepted the billed amounts and the electricity has supplied during PPP rule. The government bodies have their accounts audited.

When did NS try to renegotiate IPP contracts? Are you referring to 1997, when they went to court to nullify the 15% returns committed to by PPP? If so, then they must have one heck of an explanation for all the MOUs they have been signing since last year, since none of them promises anything less than 18% to investors, and the guaranteed returns go as high as 33% on the dollar.

Audits are done to ensure that billing is correct, and payments are correct, and the services for which the billing is being done was actually rendered. If all those blanks are filled, I dont see any reason why PMLN would have to avoid an audit of the 500 billion payment to IPPs. After all, that audit was of the finance ministry, not of the IPPs, so no reason for IPPs or investors to fear anything.

By the way, the main reason behind the audit was to verify/clear allegations that IPP payments were handed out disproportionately, keeping in mind the fact that several IPP owners have close ties to the Sharif family, but as expected, Sharifs arent exactly known for their honesty.