ISLAMABAD: The privately owned Reshma Rental Power Plant paid back on Friday the sum of Rs4.5billion in the Supreme Court.
A division bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain was hearing a suo motu case and identical petitions filed by former federal minister Faisal Saleh Hayat and PML-N leader Khawaja Muhammad Asif against corruption and mismanagement in RPPs.
The company, however, did not pay the interest that the court had ordered it to return.
According to the court, Reshma retained money in its account for two years and generated interest on the amount without a functioning power plant.
The company, however, claimed that it had been generating some electricity.
Earlier, Reshma Rental Power Plant had returned Rs2.5billion, which was taken in advance as 14 percent mobilisation.
The amount returned today was received by Reshma earlier as mobilisation advance.
Updated from print edition (below)
SC orders Reshma power plant to pay up Rs4.5b today
The Supreme Court on Thursday ordered private Reshma Rental Power Plant to pay up by Friday the sum of Rs4.5 billion that it had earlier received as mobilisation advance. The court also said that since the company had received the payment in dollars, it must cough up the cash in the same currency and with mark-up or ‘get ready to face legal action’.
A division bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain was hearing a suo motu case and identical petitions filed by former federal minister Faisal Saleh Hayat and PML-N leader Khawaja Muhammad Asif against corruption and mismanagement in RPPs.
The court held that Reshma Power Company had failed to fulfil the terms of the agreement.
The company’s attorney said his client had already deposited Rs2.5 billion. Justice Khilji Arif Hussain said the company had been paid Rs4.5 billion, which also entails a mark-up. “Mind boggles at the thought that while the company was given advance payment two and a half years ago, no-one dared ask it why it was not generating electricity,” he remarked.
Chief Justice Iftikhar Chaudhry said the counsel for Nepra, a government institution, had also conceded that rules and regulations were violated in the RPPs agreements. Nepra even asked the authorities concerned to review the contracts, but this was not done, he added.
He said the rental power plants were provided with billions of rupees in mobilisation advance, but they are not even generating 100 MW of electricity. The court will take action against people who inflicted losses running in billions of rupees on the public purse.
The bench learnt, much to its surprise, that Wapda had paid Rs65.18 million custom duty for nine RPPs, including Rs36.74 million for Karkey Power Project.
The bench asked the National Electric Power Regulatory Authority (Nepra) to submit details of reference tariff and generation tariff for rental power projects (RPPs) on Friday to determine the extent of irregularities in the scheme.
The bench was informed that Wapda is paying $9.49 million to Karkey, Reshma and Gulf rental power plants as monthly rent.
Anwar Kamal, while assisting the bench, contended that letter of award to RPPs was issued by Private Power and Infrastructure Board (PPIB), whereas the rental service contract was signed by Generation Company (Genco). According to International Competitive Bidding, tariff is determined by Nepra, but it was the PPIB which settled it. He submitted that National Transmission and Dispatch Company purchases power from the Karkey at the rate of Rs42 per unit which is sold to the Karachi Electric Supply Company (KESC) for Rs7 per unit. KESC supplies electricity at the rate of Rs9 to its consumers. “Consumers across the country subsidise the tariff differential of Rs33 per unit for Karachi, which is unjustifiable.”
The hearing was adjourned till November 21.
(Read: SC’s campaign against corruption)
Published in The Express Tribune, November 18th, 2011.
COMMENTS (26)
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Who is Raja Babar Ali, is he really a PM`s relative...I have heard that he is the owner of Kakay. But is he really a relative of PM. If so then we understand the Rs. 52 per unit story.
Shabaash CJ sb. You are fulfilling the aspirations of the people... Now please take the Rs. 7 billion from that White Elephant Karkay ship at Karachi... Special thanks is also due for Faisal Saleh, the whistle blower of this mother of all scams... I can't believe that we are paying Rs 52 per unit just because our PM sb wanted to oblige his sister in law and her husband Raja Babar Ali...there are better ways to make them happy
What ever this CJ is doing or have done under the adverse situation, there is no doubt that his work and accomplishments will be remembered for long time and will serve as a part of lessons in the text books. He already made a place in history to be written.
When people rise to the challenges beyond their self interest, no wonder they become hero.
Long Live CJ, and May people like you, or better than you [fantasyful thinking :P] succeed you..!
Either they pay the interest or else defaulters be tried & their assets confiscated.This is tax payers money,this is our money.
Either they pay interest or else the defaulters be tried & their assets confiscated.
Thank you PPP for making Pakistan a big mess. I dont know why clean leaders are still in PPP. Shame on leadership of PPP who failed to eliminate corrupt people from their ranks.
the CJ proves again proves that the pen is mightier than the sword.
CJ need to "Do more" to save this country from the Parliamentarians.
The sponsors of Reshma still benefitted from the Rs.4.5bn deposit in thier account for a good two and a half years.
Who are the sposors? Where is the punishment?
Bravo CJ and Faisal Saleh Hayat... You should get the full interest from them and also penalize the Pepco and Ministry of Power officials who approved and supported these white elephants. The whole Nation is in debted to you Chief Sb.. Please keep up the good work...
Now I want to see Raja Pervaiz Ashraf behind the bars. And for those who are/were against the restoration of judges, this serves as a tight slap on their faces. These bunch of thugs and looters must be punished now. On a side note I wonder when will the London based analysts here in ET spare some time cursing IK and write something about this daylight robbery?
Bravo SC!
Rental Power Gate is bigger than the Memo Gate!
Good job recovering the money. Now some people need to be put behind bars for this. It is not enough to just recover the money.
Well all I can say is good work by the SC.
I was initially very critical of this CJ. I have to say perhaps I was wrong. He is doing good work if he is actually managing to extract anything from these vampires.
They should not only return the interest amount but they should also be penalised for breach of contract
Where was the Government Departments.Why did they not take action and get the money returned.Action should also be taken against them
What about those scams which can not be unearthed by the SC. Investigating agencies are sleeping a sound sleep or making money but SC has to perfom on their part. Those should also be taken into account.
CJ doing best however country need more than.
@Sid:
Only till 2013 when the chief justice retires.
Another Pandora box opened!!!
Zindabad, Supreme court the only hope.