Verdict out: Dissolve all rental power projects, says SC
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.
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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.
Rental power plants should be replaced with public household consumer solar panels that feed excess power into the grid.
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.
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.
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.
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
wow after all this corruption our ignorant pakistanis will still elect PPP representatives from Sindh .. we pakistanis shud get a life
@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
@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.
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.
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?
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.
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
@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.
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.
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.
@Pure Once a decision has been reached by a court, it takes quite a while to draft the detailed verdict.
Who will implement the judgement?
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.
@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.
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.
I m concerned with the implementation of the SC verdict, nothing going to happen
Very good Decision
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
This government is proved as worst example of adminstration.
This is going to put serious dent in business climate of Islamabad. I'm waiting for PPP reaction.
Thank you Supreme Court for saving our tax money.
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.
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
This will be another Nail in PPP's government...
Thank God. Good news. Rental power was a scam.
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.
thank you SC , lets see what they have to tell in reply.
"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.
Nothing is going to happen.... All in govt and opposition are corrupt.... Who will carry out action against the accused
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.
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...
Just hope Zardari will not pardon all those involved in this mega corruption case.