Verdict out: Dissolve all rental power projects, says SC

Published: March 30, 2012

Verdict is on cases involving alleged corruption in contracts of, payments to rental power plants detected by NEPRA. PHOTO: AFP/FILE

ISLAMABAD: Announcing the verdict of the rental power plant case on Friday, a two-member bench of the Supreme Court (SC) headed by Chief Justice Iftikhar (CJ) Muhammad Chaudhry said that all the rental power projects should be dissolved.

Declaring all rental power project contracts “illegal”, the Chief Justice said legal proceedings should be carried out against all those involved in the corruption.

He added that public sector power generation companies (Gencos), Pakistan Electric Power Company (Pepco), Water and Power Development Authority (Wapda), National Electric Power Regulatory Authority (Nepra) and the federal government is responsible for the corruption of billions of rupees.

The SC observed that the policy of the rental power projects was not defined on a transparent basis. Rather than overcoming circular debt, the authorities endorsed more contracts, the CJ added.

He directed that legal proceedings should be carried out against the former federal minister for water and power Raja Pervez Ashraf and the then secretary finance for water and power.

The SC also noted that the markup should be paid in addition to the retrieval of money. The verdict was passed on cases involving alleged corruption in contracts of and payments to rental power plants detected by the Nepra.

The applicants, Minister for Housing and Works Faisal Saleh Hayat and MNA Khawaja Muhammad Asif appeared in person while the government departments, sponsors and owners of the rental power plants were represented by their counsels.

The judgement was reserved on December 14 last year and was announced today.

Reader Comments (40)

  • Mahmood
    Mar 30, 2012 - 10:10AM

    Just hope Zardari will not pardon all those involved in this mega corruption case.

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  • Mar 30, 2012 - 10:17AM

    The judgement was reserved on December 14 last year and was announced today.

    what took SC 3 months to announce this judgement? were they waiting for summer season.

    Good decision though…

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  • Mohammad Ali Siddiqui
    Mar 30, 2012 - 10:21AM

    Thank you Chief Justice of Pakistan for declaring all rental power projects as illegal.

    The entire nation has very high expectations from you and the Supreme Court of Pakistan.

    I am sure that once the illegal wealth accumulated by the corrupt politicians will be brought back to the country, it will help Pakistan to repay the loans taken from foreign donors.

    May God Bless You for your untiring efforts.

    SUPREME COURT ZINDABAD.

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  • umair
    Mar 30, 2012 - 10:25AM

    Nothing is going to happen…. All in govt and opposition are corrupt…. Who will carry out action against the accused

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  • Ali q
    Mar 30, 2012 - 10:26AM

    “federal government is responsible for the corruption of trillions of rupees.” – the impact of which is felt by people across this country. Wake up status quo supporters – courts/analysts/people who bear brunt of these policies routinely allege that this government doesn’t act in the best interest of its people. things don’t have to be this way. Expect more of your leaders, demand of your leaders – and if they don’t listen, please let 2013 be the year you vote them out of office.

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  • xohaib hassan
    Mar 30, 2012 - 10:31AM

    thank you SC , lets see what they have to tell in reply.

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  • Dr Waqas
    Mar 30, 2012 - 10:42AM

    Great so now we can say permanent goodbye to what little electricity is there.Mr chief justice it was better to only prosecute the personnel involved in corruption rather than dissolving the whole project.

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  • Zeeshan
    Mar 30, 2012 - 10:50AM

    Thank God. Good news. Rental power was a scam.

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  • Maher
    Mar 30, 2012 - 10:57AM

    This will be another Nail in PPP’s government…

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  • IFTIKHAR-UR-REHMAN
    Mar 30, 2012 - 10:57AM

    I have very serious doubts about implementation of SC orders as PPP, Zardari and Gillani are known for not accepting and respecting SC orders!!! NOTHING WILL HAPPEN

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  • ishtiaer hussain
    Mar 30, 2012 - 11:32AM

    The decision by the judges will intensify load-shedding further. After this verdict, no sane investor will come to Pakistan for investments. Judicial activism, along with our corrupt politicians, generals and sensational media, is pushing the country to the brink. This time around no one will come to our rescue. Those who are appreciating SC for its bold decision should be ready for more load-shedding in the sizzling summer.

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  • Muzaffar
    Mar 30, 2012 - 11:41AM

    Thank you Supreme Court for saving our tax money.

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  • ParvezM
    Mar 30, 2012 - 11:42AM

    This is going to put serious dent in business climate of Islamabad. I’m waiting for PPP reaction.

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  • Spaniard
    Mar 30, 2012 - 11:51AM

    First decesion given by SC.. We are ecpexting more decesions from youRecommend

  • zia virk
    Mar 30, 2012 - 12:09PM

    This government is proved as worst example of adminstration.

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  • Mar 30, 2012 - 12:20PM

    So now the government will have to pay billions as penalty to the rental plants – GOD bless us now!! This budget is going to be a mess

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  • Pakistani
    Mar 30, 2012 - 12:27PM

    Very good Decision

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  • Mar 30, 2012 - 12:42PM

    I m concerned with the implementation of the SC verdict, nothing going to happen

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  • Israr
    Mar 30, 2012 - 12:46PM

    The decision will never see light of the day because all beneficiaries are on-board Samjhota Express. The (mis)Goverenment, however, will be glad they can now pin the blame for lack/absence of electricity on SC’s decision. Lights out, please.

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  • Fayyaz Haider
    Mar 30, 2012 - 1:12PM

    @ishtiaer hussain:
    Clean investors prefer country where rule of law prevails and contacts are done without any kickbacks and corruption. Why people like you believe investors can come only when there is corruption in the country.

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  • Billoo Bhaya
    Mar 30, 2012 - 1:29PM

    Nothing is going to happen. Save your prayers for something better. Why did it have to take so long to come to this conclusion and verdict??? We need speedier justice so that people indulging and responsible for corrupt practices should be considered traitors and hanged. We have over 180 million people. If 2 million are hanged it will make no difference to the population growth rate. But it will certainly bring corruption under control.

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  • Das
    Mar 30, 2012 - 2:23PM

    Who will implement the judgement?

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  • Mar 30, 2012 - 2:27PM

    @Pure
    Once a decision has been reached by a court, it takes quite a while to draft the detailed verdict.

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  • Ali
    Mar 30, 2012 - 2:41PM

    Now the RPPs will evoke penalities which evoke soverign gurantees and penalties
    which government are bound by international law.
    Causing million more in tax payers money.

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  • Parvez
    Mar 30, 2012 - 3:02PM

    The ruling appears more symbolic than real because the judgement has to be implemented by the government who themselves are guilty. This is loot and plunder of the nation on an astronomical scale.

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  • J-man
    Mar 30, 2012 - 3:32PM

    @Ishtiaer Hussain: They were generating 92 MWs, i dont think shutting them down will cause more loadshedding. And if foreign investors are going to invest in crappy projects like these then we are better off without them. Contrary to your thoughts, this should reinforce beleif in our court systems which actually helps attract FDI.

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  • Not me
    Mar 30, 2012 - 3:47PM

    A very good decision.
    Strict action should be taken according to law and money recovered.
    We citizens have highest respect for the Supreme Court of Pakistan

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  • Jibran
    Mar 30, 2012 - 4:23PM

    Political decision. What evidence did the court look at? Newspaper clippings? Testimony of Khawaja Asif and Faisal Hayat? How did our genius CJ reach to this conclusion?

    All this seems exactly like the Steel Mill case. And now the Steel Mill has become a total liability instead of the profit the government was going to make at the time of the sale. Thank you Mr. Chaudhry for the complete destruction of the affairs of the country, where the only interest of the court is to protect the rights of the terrorists, and the Sharifs.

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  • Cautious
    Mar 30, 2012 - 5:04PM

    Kudos to the SC. Query – does anyone ever get convicted and go to jail for corruption and stay there for the duration of their sentence or do they just get released and elected to some high office?

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  • zavia
    Mar 30, 2012 - 5:13PM

    Raja Pervez Ashraf and federal government have done unrepairable crime to this nation. Their name should be in ECLRecommend

  • Cautious
    Mar 30, 2012 - 7:26PM

    I suppose this should send a message to Russia that short circuiting proper biding procedures on the IP project may result in an invalid contract – and I doubt that Gazprom is willing to run the risk of US wrath without having an exorbitant profit. This decision may have other ripple effects that will make foreign investors more cautious about investing in Pakistan.

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  • Fay
    Mar 30, 2012 - 9:20PM

    @Ali:
    Who informed you that? If any agreement under international law is made and guarantees are given and the agreement is declared illegal guarantees are waived, in phillipine it has already been done and precedented but this government will certainly honour guarantees as they have their personal interest in those agreements.

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  • ali
    Mar 30, 2012 - 9:33PM

    @ishtiaer hussain:
    dear sir installed capacity in pakistan is 18000MW and we need 16500MWin june july that is without the rental power companies pakistan does not need new power companies it needs to run its installed capacity to maximum usage

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  • wahab khan afridi
    Mar 30, 2012 - 9:58PM

    wow after all this corruption our ignorant pakistanis will still elect PPP representatives from Sindh .. we pakistanis shud get a life

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  • Saad Shibli Asc
    Mar 30, 2012 - 10:13PM

    This is very very good judgment deliver by S.C.Pak. a very big corruption was also done in Hubco. Electric project that was also in P.P.P. regime. actually army is responsible for this these corruption. if army do not protect the corrupt government then no government official can do even for hundred rupees. Saad Shibli Asc

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  • KM
    Mar 31, 2012 - 9:49AM

    CRAP decision. there were 2-3 companies that actually invested millions of dollars based on an announcement from the govt. There was bidding on the tenders from international companies as well. The SC has termed all companies as corrupt without noticing that some were making payments on time and were not corrupt.
    Great job, deprive this country of what is needed the most: electricity.

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  • A. Khan
    Mar 31, 2012 - 5:25PM

    People say that severance monies will have to be paid to RPP companies. Believe, me, it will be cheaper to do that than continue with these contracts. We have paid and are paying the tremendous costs of previous PPP gift to the nation : IPPs.

    On the other hand, if the RPPs invoke sovereign guarantees for compensation, Pakistan should sue these companies to get them to divulge who got commissions and how much it was. If truth about Agostas can come out, then so can for these RPPs.

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  • MAHMOOD
    Mar 31, 2012 - 5:46PM

    A good decision in principle but of no benefit in practice. The SC has given back from the other hand what it took away from one hand i.e terming Rental Power Projects as illegal and asking NAB to investigate the matter. I am sure their Lordships know pretty well that NAB is not an autonomous / independent body and can be easily manipulated by the executive. Look at the speed with which almost all NRO beneficiaries have been acquitted due to lack of interest by the NAB prosecution lawyers.

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  • azfar
    Apr 1, 2012 - 12:34AM

    Rental power plants should be replaced with public household consumer solar panels that feed excess power into the grid.

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  • Asif Memon
    Apr 4, 2012 - 4:40AM

    Can I just ask, how many International companies of repute came to invest in the RPP’s. Not a single one. It was all a fly by night operation meant to grease a few pockets by fleecing the poor consumers of Bijli.

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