The bench directed the federal government to conduct an inquiry into the deal to fix the liability upon the beneficiaries in accordance with the law. PHOTO: AFP/FILE
ISLAMABAD:
The Supreme Court on Wednesday nullified the lease of 150 megawatts Lakhra Power Plant project, terming it illegal and nontransparent. The plant was leased to M/s Associated Power Generation Company Limited by the Water and Power Development Authority (Wapda) for 20 years in 2006.
“The transaction between M/s Associated Group and Wapda is not sustainable being nontransparent and also suffers from irregularities, illegalities, omissions and commissions. [It also] violates the relevant rules as well as precedents set forth by the superior courts,” a three-judge bench noted in a short order.
The bench – headed by Chief Justice Iftikhar Muhammad Chaudhry – further directed the federal government to conduct an inquiry into the deal to fix the liability upon the beneficiaries in accordance with the law. Justice Jawwad S Khawaja and Justice Sheikh Azmat Saeed were the other members of the bench.
“We have heard the counsels for the parties at length and have examined the pleadings/documents placed before us for ascertaining as to whether the transaction between the parties, ie, the lease for 20 years in respect of the Lakhra Power Station GENCO-IV, dated 11.09.2006, followed by Power Purchase Agreement dated 15.12.2007 had been entered into in a transparent manner,” read the court order.
Earlier the government’s attorney Shah Khawar told the bench that the process to lease out the plant was not transparent and the government would initiate inquiry against those responsible.
During hearing Secretary Water and Power Saifullah Chattha told the apex court that the government had delayed the decision to privatise Lakhra Power Plant.
“The decision will remain delayed till the reservations on this project are removed,” Saifullah Chattha said in reply to a query by Justice Jawwad S Khawaja.
The court ordered him to submit a written statement regarding the government’s decision to delay.
It also admonished the water and power secretary for concealing facts about the LPP’s privatisation from Wapda’s counsel and Additional Attorney General, and directing him to file an early statement in this regard on Wednesday.
Published in The Express Tribune, August 22nd, 2013.
COMMENTS (8)
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@Muneer: Every institution must work within their domain, thats the only way to get things improved.
My dear all Participants.......just to inform you , it is Pakistan and " corruption will prevail " always......
If Supreme court has recieved their share then the decision would be different...Jeeay Pakistan, jeeeay Awam.
@Umar Khan: You would soon find out,that the Plant has stopped generating electricity.Sooner or later it would be closed permanently.Be happy along with the judges.
@ K Alam; @ Alikulikham Who else you want to take action then if not by judges. Two petitions were filed against this project and judges are bound to make decision. It seems that people are happy with the corruption made by state and do not want courts to intervene. The main problem is that now people love to criticize.
These judges will allow privatisation resulting in heavy losses to the state. I have come to the conclusion that for the judges it is just a job of a civil servant. One should not expect high ethical and moral standards expected of a judge.
when supreme will interfere in government business on technical grounds things would turn out to be a disaster for the country which is evident from the decision of steel mills case wherein the court interfered and we are still facing consequences in terms of huge losses to govt. exchequer.