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TIP exposes Rs100 bn extortion scam by IPPs, others**
After the recent admission by top government officials that the electricity crisis was a self-created phenomenon and a consequence of bad governance, Transparency International Pakistan (TIP) has now revealed that the private power producing companies are allegedly involved in adding fictitious production costs to the expenses to avail additional income amounting to Rs100 billion per annum.
This alleged fictitious cost which forces the ordinary power consumers to pay more, has been an unchecked practice for the last ten years. According to Adil Gillani, the TIP adviser, an influential power cartel is involved in this huge corruption with the connivance of government authorities. The TIP has approached the SECP to check this massive corruption by conducting a cost audit of IPPs and fertilizer manufacturers under Companies Cost Accounting Records (General Order), 2008. Gillani said that so far SECP too had been reluctant to perform its obligations.
While formally approaching the SECP, the TIP has also informed the Supreme Court of Pakistan (SCP), Public Accounts Committee (PAC), chairman NAB and ministers of finance, petroleum and water and power about this matter.
“It is reported that more than 50 IPPs and fertilizer manufacturers have been involved in this malpractice, and have been availing additional benefits in connivance with the regulatory authorities for the last ten years of over Rs100 billion per annum. The sale prices are determined by the relevant regulatory authorities based on the production costs submitted by these firms.”
The TIP asked the SECP to conduct an audit of the accounts of all KESC & IPPs and fertilizer manufactures, so that the additional costs charged by these firms, if any, are determined, and the nation gets relief by depositing in the national exchequer account all such overpayments claimed from public and those found involved in this malpractice are taken to task under the laws of land.
Pakistan has become a free-for-all country to do any kind of loot and plundering and go scot-free. It’s not just the incumbents, IPPs have been making merry for a decade. Scams of billions of rupees have actually now become a routine matter in our country.
