‘ECC decided rental projects, not minister’

Attorney tries to establish Raja Parvez Ashraf’s innocence.

ISLAMABAD: All decisions in connection with rental power projects (RPPs) were taken by the Economic Coordination Committee of the cabinet, former minster for water and power Raja Parvez Ashraf stated in his plea before the Supreme Court on Tuesday through his attorney. The former minister was accused of committing irregularities in concluding deals for RPPs and was permitted by the court to present his stance.

His counsel, Waseem Sajjad informed a division bench headed by Chief Justice (CJP) Iftikhar Muhammad Chaudhry that many RPP contracts were approved before Ashraf was sworn in as minister. “Although the minister was in charge of policymaking, he continued the previous regime’s policies because it was the only shortcut to bring the country out of the power crisis.”

He said people had been agitating against the power shortage when his client took charge of the ministry. The CJP pointed out that Sajjad was now defending Ashraf who condemned the power policy of the previous regime of which he was a part. “Whether you people are in the government or opposition, darkness became the fate of the masses,” said Justice Khilji. “And the government went on to sign rental power projects.”

The counsel submitted that his client tried to ensure transparency in RPPs by adopting the international criteria for bidding. He submitted that RPPs were undoubtedly expensive, but the government had no other option. He argued that policy implementation was the line department’s responsibility. He stated that the cabinet approved the increase in mobilisation advance and the electricity tariffs were approved by the National Electric Power Regulatory Authority (Nepra).

The CJP asked how much money had been recovered from RPPs and whether his client had any role to play in the reimbursement. Sajjad submitted that Reshma power plant had returned all the money and would also return the mark-up it had earned.  This was due to the judiciary’s intervention, you did nothing to ensure the recovery, the CJP said. “It was the minister’s duty to frame a policy but projects were implemented without it. If there is a policy, just show it to us so we can be happy that something was done in accordance with the law.” Sajjad submitted that he would present the policy during his arguments. When Justice Khilji asked him to directly go to the policy, he said ministers never make policies without the cabinet’s approval. He said due to gas shortage some RPPs which could operate on dual fuel were commissioned.

The CJP regretted that experiments were carried out on international loans and now RPPs had failed to come up to the mark.” Your client did not work to make the RPPs successful,” he added. “Everything was transparent and can be viewed on the websites,” the counsel replied. He sought some time to prepare his arguments. Registrar Nepra Syed Safeer Abbas submitted some documents but the CJP asked him to submit a comprehensive report on tariff. Chairman Central Board of Revenue was also directed to submit a report on the duties paid on RPPs and the machinery’s owners by today. The court was adjourned for Wednesday.

Published in The Express Tribune, November 23^rd, 2011.