National Productivity Organisation: FIA probes handing of contracts to ghost firms

NPO was supposed to cut energy losses in textile units.

ISLAMABAD:

The Federal Investigation Agency has begun its investigations regarding reported corruption cases of the National Productivity Organisation (NPO) giving energy efficiency contracts to ghost companies.

Former deputy general manager at NPO, an organisation under the Ministry of Industries, Hasan Haider had pointed out several irregularities in different projects awarded to ghost companies.

He also approached the establishment division, which had started investigating these claims, officials told The Express Tribune.

The purpose of the Energy Efficiency Project was to minimise energy losses in the textile spinning units to overcome the power crisis in the country. “Being Chairman of the Financial Committee, I refused to give contracts to the ghost company but unfortunately, NPO’s project director and general manager forcefully diverted huge funds to ghost companies. I was under pressure to resign as chairman,” Haider had said in a written statement to the FIA.

He alleged that the ghost company conducted an audit of about 200 textile units, charging Rs250,000 from each. However, while the ghost company pocketed the charges, there was no tangible outcome to show for it in accordance with the predefined terms of reference.

“Even the procurement process to establish an Energy Efficiency Cell in Lahore was not transparent,” he said.



General Manager Ejaz Rasool Chowdhry did not respond when contacted despite repeated attempts. However, NPO Chairman Khawaja Muhammad Yousuf confirmed that the FIA was investigating the contracts to ghost companies but claimed these contracts were awarded before he was appointed chairman. He also confirmed that one former NPO employee had raised the issue.

The FIA is also probing the reported financial irregularities in the “Energy Efficiency Phase 2” project, which also was allegedly given to a ghost company. Officials said that an FIA investigating team had sent notices and was recording statements of different officials at the NPO.

The investigation agency is also looking into alleged embezzlement in another project, the Prime Minister Quality Award project costing Rs39.9 million. The project was aimed at introducing “Business Excellence Journey” for outstanding performers in the industrial field. However, irregularities had been pointed out as money was not allotted for these projects.

Published in The Express Tribune, September 25^th, 2013.