Punjab

Substandard equipments: NAB, FIA reluctant to act in transformers’ case

Committee’s report noted that the companies did not respond to the allegations pointed out by the inquiry committee.

Asad Kharal January 06, 2013

Committee’s report noted that the companies did not respond to the allegations pointed out by the inquiry committee. PHOTO: FILE

LAHORE:

The National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) have been reluctant to initiate criminal proceedings against those who have caused billion of rupees in losses to the public exchequer by procuring substandard power transformers, sources familiar with the matter confirmed to The Express Tribune.

A departmental inquiry conducted by the National Transmission and Dispatch Company (NTDC), on the directives of the managing director of Pakistan Electric Power Company (Pepco) confirmed that recycled silicon steel and recycled transformer oil were used by the companies to manufacture the transformers.

A three-member committee declared that the core material procured by three manufacturing companies was found to have been under-utilised in the manufacturing of the power transformers.

The committee’s report noted that the companies did not respond to the allegations pointed out by the inquiry committee.

During the course of inquiry, it was found that the manufacturers had obtained only a small quantity of the purchased material, compared to the actual quantity used in the making of transformers.

This could prove that the material was purchased from an unauthorised source and made of scrap material.

The FIA launched a probe into the matter in July 2012 and the matter was also pending before the NAB for several months. But both the agencies have been reluctant to initiate criminal proceedings against the firms, who have caused billions of rupees in losses to the exchequer by misappropriating the money on the procurement of substandard transformers manufactured from scrap and recycled material.

Even though the FIA has nearly finalised its inquiry regarding the use of substandard oil in the transformers instead of the specified grade oil, its officials have been reluctant to register a criminal case due to pressure of some higher authorities, sources stated.

Published in The Express Tribune, January 6^th, 2013.