WASA's financial woes deepen
The Rawalpindi Water and Sanitation Agency (Wasa) is facing an escalating financial crisis as court rulings and overdue liabilities have tightened the agency's fiscal constraints.
The Lahore High Court's (LHC) Rawalpindi Bench has dismissed Wasa's appeal, mandating the payment of Rs20.19 million to a landowner.
The case involved the acquisition of 1 kanal and 12 marlas of land owned by Iqbal Begum in Morgah Kotha Kalan in 2017 for an underground water tank project.
While the agreed rate was Rs0.25 million per marla, the agency failed to pay the full amount. Begum filed a claim for additional compensation based on a revised rate of Rs0.52 million per marla, which was upheld by a subordinate court.
Following the LHC's dismissal of Wasa's appeal, the agency is now required to pay Rs20.19 million along with an additional Rs1.6 million by December 31, with an annual interest of eight per cent if the payment is delayed.
Adding to Wasa's challenges, all its bank accounts have already been frozen due to its failure to pay Rs22.05 million to the owners of 5,500 kanals of land acquired in 2009 for a sewage treatment plant in Gorakhpur.
Despite the passage of 15 years, the plant remains unconstructed, leaving the agency under scrutiny.
Moreover, Wasa owes Rs1 billion to the Islamabad Electric Supply Company (Iesco) for unpaid electricity bills. This debt prompted Iesco to temporarily disconnect power to several tube wells and Wasa's main building, further straining operations.
The power supply has since been temporarily restored.
To address its financial troubles, Wasa has sought a bailout package of Rs2.5 billion from the Punjab government.
Wasa Managing Director Muhammad Saleem Ashraf has included this request in a summary, citing the need to clear Iesco dues, Khanpur Dam arrears, and other liabilities.
As Wasa's financial challenges mount, the agency's ability to maintain essential services remains in jeopardy, underscoring the urgent need for financial and administrative reforms.
Last month, a senior civil judge issued a decree against the non-payment of the additional award amount of Rs225 million for 5,500 kanals of land, freezing all the bank accounts of the Wasa. The Punjab government acquired land in 2019 for a sewage treatment plant in the Gorakhpur area of Adiala.
The Punjab government acquired 5,500 kanals of land from the locals to install a sewage treatment plant on the said site and handed over its possession to Wasa. However, even after 16 years, the sewage treatment plant could not be installed on the site and Wasa simply is monitoring this land at its own expense.
Under the project, the sewage from Rawalpindi's Nullah Leh to Gorakhpur had to be taken through Swan River with the help of sewerage trunks, clean the sewage from the sewage treatment plant and obtain clean water for irrigation.
The owners of the said lands first received the amount according to the agreed rate, but later demanded more payments under the revised and increased award while considering the rate was low in the first deal. The landowners moved their case to different courts.