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By Ansar Abbasi
Wednesday, January 16, 2013
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ISLAMABAD: It was the Presidency-controlled NAB’s investigation report and not the widely speculated baseless nexus between the military, judiciary and the protesting Allama Qadri which became the basis for the apex court’s order to get over 20 accused, including Prime Minister Raja Pervaiz Ashraf, arrested, that too after completing the legal course.

 

While the electronic media crossed all limits of speculation on Tuesday to add to the confusion instead of sharing the facts with the masses, it was the NAB’s 80-page investigation report presented before the SC by DG NAB Rawalpindi that showed that in the RPPs corruption cases, two references should be moved against 20 persons, including the ex-minister for water and power (presently the PM) Raja Pervaiz Ashraf.

 

There are several persons, including Ashraf, whose name is mentioned as accused in both the investigation reports.

 

The NAB report clearly charges them of their alleged role in the RPPs corruption and in case of the Raja Pervaiz Ashraf, the report said that he, during his tenure as minister for water & power, approved the summary for submission before the ECC and the cabinetin violation of the PPRA rules and transparency.

 

According to the NAB sources, one of the investigation reports into the RPP Piranghaib Multan case shows the following 16 persons as accused: Raja Pervaiz Ashraf, ex-Minister for Water & Power, Shaukat Tareen, ex-Minister Finance; Salman Saddique, ex-Secretary Finance, Ministry of Finance; Shahid Rafi, ex-Secretary Water & Power ; Ismail Qureshi, Chairman PEPCO; Munawar Baseer Ahmad, MD PEPCO; Tahir Basharat Cheema, MD PEPCO; Fazal Ahmad Khan, Member Power (Convener); Rafiq Butt, CEO, NPGCL; Muhammad Anwer Khan, CEO,NPGCL; Qaiser Akram, Chief Engineer (CPP) Thermal; Masood Akhtar, Chief Engineer-IV (WPPO); Arshad Raza, Sr. GM (T&P) PEPCO (Member); Rana Muhammad Amjd, GM WPPO (Convener) in Jail; Ejaz Babar, Finance Director NPGCL (Member); and Iqbal Z Ahmed and others.

 

In the second RPP Sahiwal, Sialkot case, the following 22 accused were nominated in the NAB investigation report: Shahid Rafi, ex-Secretary Water & Power; Ismail Qureshi, Chairman PEPCO; Munawar Baseer Ahmad, MD PEPCO; Tahir Basharat Cheema, MD PEPCO; Fazal Ahmad Khan, Member Power; Muahammad Anwar Khan; Rafiq Butt, CEO, NPGCL; Ghulam Mustafa Tunio, CEO, NPGCL; Qaiser Akram, Chief Engineer (CPP) Thermal; Masood Akhtar, Chief Engineer-IV (WPPO), GM NPCC Islamabad; Arshad Raza, Sr.GM (T&P) PEPCO; Rana Muhammad Amjad, GM WPPO; Ejaz Babar, Finance Director NPGCL; Zafar Ali Khan Member NEPRA; Ghiasuddin Ahmed, Member NEPRA; Maqbool Ahmed Khawaja, Member/Vice Chairman NEPRA; Khalid Saeed Chairman NEPRA; Insaf Ahmed Director Tariff/Case Officer NEPRA; Abid Ali, CE M/s Techno-e-Power Sahuwal Pvt Ltd; Raja Pervaiz Ashraf, ex-Minister for Water & Power; Shaukat Tareen, ex-Minister Finance; and Salman Siddique, ex-Secretary Finance, Ministry of Finance.

 

About the charges against the high profile accused including the prime minister as presented before the SC by the DG NAB Rawalpindi, the relevant parts of the NAB report are presented below:

 

Raja Pervaiz Ashraf, ex-Minister for Water & Power: Offences include misuse of authority for obtaining approval from the ECC and the Cabinet; willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as Minister; and issuance of illegal policy for increase in down payment from 7to 14 %.

 

“Raja Pervaiz Ashraf during his tenure as Minister for Water & Power approved summary for submission before the ECC & the cabinet in violation of PPRA rules and transparency. On 13.04.2009 (F/), he authorised submission of summary to the ECC whereby GOP guarantee to back up payment obligations of the power purchaser instead of SBLC was proposed and subsequently approved by the ECC and thereby sanctioned a major post bidding variation which has also been pointed out by ADB in its audit report (F/).

 

“This fact has also been recorded by the Supreme Court of Pakistan in its judgment dated 30.03.2012.

 

“Furthermore, on 17.08.2009, a summary was approved and authorised for submission to the ECC of the cabinet which contains misleading facts and misrepresentation. In this summary, it was stated that the terms and conditions of the bidding envisaging 7% advance and confirmed SBLC could not be honoured due to difficulties in financing; therefore, revised in consultation with the finance division to 14% advance and GOP’s sovereign guarantee. From the scrutiny of the record of the finance division, no such consultation/ concurrence had taken place and all the RPPs did not have the condition of establishing confirmed SBLC.

 

“Therefore, this concession which caused tremendous losses to the GOP was extended to all RPPs on retrospective basis through misrepresentation & misstatement of facts. The ECC of the cabinet through this summary and cabinet on 25.08.2009 was enticed and falsely induced that in extending the aforesaid revised terms and conditions, the RPPs would be commissioned during the current financial year although no such understanding with the RPPs was in place and record shows that none of the RPPs achieved COD as was promised in the summary which establishes that it was a smokescreen. Due to this illegal and unlawful act of omission and commission of Raja Pervaiz Ashraf, the PEPCO, through their boards, approved issuance of GOP guarantee, increase in down payment from 7 to 14% despite the fact that SBLC was in place and undue favor and concession was granted to M/s Pakistan Power Resources pvt Ltd Pirahgaib Multan(F/).”

 

“Shaukat Tareen, ex-Minister Finance: Offences include misuse of authority in approving illegal and unlawful increase of Advance Payment from 7% to 14% causing loss to the national exchequer; and willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor.

 

“Shaukat Tarin, during his tenure as Minister for Finance/Chairman ECC, willfully failed to exercise his authority preventing approval of the summary submitted by Ministry of Water & Power before the ECC & the cabinet in violation of PPRA rules and transparency. In particular, the ECC, with the consultation of Ministry of Finance on 14.04.2009 (F/), approved GOP guarantee in lieu of stand by letter of credit and thereby sanctioned a major post bidding variation which has also been pointed out by the ADB in its audit report (F/). This fact has also been recorded by the Supreme Court of Pakistan in its judgment dated 30.03.2012.

 

“Furthermore on 17.08.2009, a summary was approved & authorized by the ECC of the cabinet which contained misleading facts & misrepresentation wherein it was stated that the terms & conditions of the bidding envisaging 7% advance & confirmed SBLC could not be honored due to difficulties in financing & therefore revised in consultation with the finance division to 14% advance & GOP sovereign guarantee. “From the scrutiny of the record of the finance division, no such consultation/ concurrence had taken place & all the RPPs did not have the condition of establishing confirmed SBLC. Therefore this concession which caused tremendous & huge losses to the GOP was extended to all RPPs on retrospective basis through misrepresentation & misstatement of facts. The ECC of the cabinet through this summary and cabinet on 25.08.2009 extended the aforesaid revised terms and conditions the RPPs would be commissioned during the current financial year although no such understanding with the RPPs was in place & record shows that none of the RPPs achieved COD as was promised in the summary which establishes that it was a smokescreen. Due to this illegal & unlawful act of omission & commission of Mr Shaukat Tareen as Chairman ECC/ Minister for Finance, the PEPCO through their boards approved issuance of GOP guarantee, increase in down payment from 7 to 14% despite the fact that SBLC was in place & undue favor & concession was granted to M/s Techno Services Pvt Ltd Sahuwal, Sialkot through amendment No.1 to the rental services contract (F/).

 

Due to this illegal & unlawful act of omission & commission of Mr. Shaukat Tareen, the PEPCO & GENCO through their boards approved illegal increase in down payment from 7 to 14% despite the fact that SBLC was in place & undue favor & concession was granted to M/s Pakistan Power Resources pvt Ltd Pirahgaib Multan (F/).”

 

Salman Siddique, Secretary Finance, Ministry of Finance: Offences include misuse of Authority in approving illegal and unlawful increase of Advance Payment from 7% to 14% causing loss to the national exchequer; and willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor.

 

“Mr. Salman Siddique during his tenure as Secretary Finance willfully failed to exercise his authority to prevent the State interest. On 17.08.2009, a summary was approved & authorized by the ECC of the cabinet which contained misleading facts & misrepresentation wherein it was stated that the terms & conditions of the bidding envisaging 7% advance & confirmed SBLC could not be honored due to difficulties in financing & therefore revised in consultation with the finance division to 14% advance & GOP sovereign guarantee, whereas from the scrutiny of the record of the finance division no such consultation/ concurrence had taken place. When there was no such concurrence by Ministry of Finance even then he did not write to the Finance Minister (who also headed the ECC) about the wrongful doing by him as Chairman ECC & Finance Minister. Therefore, this concession which caused tremendous & huge losses to the GOP was extended to all RPPs on retrospective basis through misrepresentation & misstatement of facts. Due to this illegal & unlawful act of omission & commission of Mr Salman Siddique as Secretary Finance, the PEPCO through their boards approved issuance of GOP guarantee, increase in down payment from 7 to 14% despite the fact that SBLC was in place & undue favor & concession was granted to M/s Pakistan Power Resources pvt Ltd Pirahgaib Multan.”

 

Shahid Rafi, ex-Secretary Ministry of Water & Power: Offences include misuse of authority as Chairman PEPCO Board granting approval to illegal & unlawful post bidding amendments to the RSC; and willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as Chairman PEPCO.

 

“Mr. Shahid Rafi as Chairman Board of Director PEPCO illegally & unlawfully approved post bidding amendments to the RSC which included increase in down payment from 7 to 14 %, establishment of SBLC, establishment of FPLC paving the way for deemed generation that would have resulted in payment to the seller even though it was not generating any electricity & increase in rental term plus amendments to the termination charges payable on termination of the RSC. All these amendments were in gross violation of transparency and were designed to cause loss to the GOP and passing of illegal & unlawful benefits & concessions to the sponsors.

 

“Mr Shahid Rafi as Chairman Board of Director PEPCO approved a proposal for increase in down payment to 14% in violation to the terms & conditions of the bidding, RSC & applicable laws resulting in non transparency, illegality & unlawfulness which were ultimately declared by the Supreme Court of Pakistan as void ab initio. Furthermore Mr Shahid Rafi as Chairman Board of Director PEPCO caused the Board of PEPCO to accord approval to a proposal substituting SBLC with GOP guarantee in violation of PPRA rules & transparency and similarly effected changes in the termination charges thereby causing or attempting to cause loss to the government and passing of undue benefits & advantages to the sponsors.

 

“Mr Shahid Rafi as Secretary Water & Power during his tenure approved summary for submission before the ECC & the cabinet in violation of PPRA rules and transparency. On 13.04.2009 (F/) he authorized submission of summary to the ECC whereby GOP guarantee to back up payment obligations of the power purchaser in stead of SBLC was proposed and subsequently approved by the ECC and thereby sanctioned a major post bidding variation which has also been pointed out by ADB in its audit report (F/). This fact has also been recorded by the Supreme Court of Pakistan in its judgment dated 30.03.2012. Furthermore on 17.08.2009 a summary was approved & authorized for submission to the ECC of the cabinet which contain misleading facts & misrepresentation wherein it was stated that the terms & conditions of the bidding envisaging 7% advance & confirmed SBLC could not be honored due to difficulties in financing & therefore revised in consultation with the finance division to 14% advance & GOP sovereign guarantee. From the scrutiny of the record of the finance division no such consultation/ concurrence had taken place & all the RPPs did not have the condition of establishing confirmed SBLC. Therefore this concession which caused tremendous & huge losses to the GOP was extended to all RPPs on retrospective basis through misrepresentation & misstatement of facts. The ECC of the cabinet through this summary and cabinet on 25.08.2009 was enticed & falsely induced that in extending the aforesaid revised terms & conditions the RPPs would be commissioned during the current financial year although no such understanding with the RPPs was in place & record shows that none of the RPPs achieved COD as was promised in the summary which establishes that it was a smokescreen. Due to this illegal & unlawful act of omission & commission of Mr Shahid Rafi as Secretary Water & Power, the PEPCO through their boards approved issuance of GOP guarantee, increase in down payment from 7 to 14% despite the fact that SBLC was in place & undue favor & concession was granted to M/s Pakistan Power Resources pvt Ltd Pirahgaib Multan (F/).”

 

Ismail Qureshi, Chairman PEPCO: Offences include misuse of authority for obtaining approval from the ECC and the Cabinet; willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as Chairman PEPCO; and issuance of illegal Policy.

 

“Mr. Ismail Qureshi as Chairman Board of Director PEPCO illegally approved restricted re-tendering instead of complete re bidding as required under the PPRA rules thereby he misuse his authority under the NAB ordinance & in contravention of transparency. Consequently the bidding was neither open nor competitive but the projects were pre-intended to be awarded to selected sponsors. In carrying out this design after limited and non-transparent re bidding Mr. Ismail Qureshi on illegal recommendation by the Scrutiny Committee approved splitting of one tender into two tenders and awarding rental services contract to two bidders illegally and unlawfully without any competition and in gross violation of PPRA and NEPRA ordinance, Act rules & regulations thereby committing corruption & corrupt practices.”

 

Munawar Baseer Ahmad, MD PEPCO: Offences include misuse of authority for obtaining approval from the PEPCO board; willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as MD PEPCO; and issuance of illegal directives.

 

“Mr. M Munawar Baseer as MD PEPCO illegally approved restricted re-tendering instead of complete re-bidding as required under the PPRA rules thereby he misuse his authority under the NAB ordinance & in contravention of transparency. Consequently the bidding was neither open nor competitive but the projects were pre-intended to be awarded to selected sponsors. In carrying out this design after limited and non-transparent re bidding Mr. M Munawar Baseer on illegal recommendation by the Scrutiny Committee supported & approved splitting of one tender into two tenders and awarding rental services contract to two bidders illegally and unlawfully without any competition and in gross violation of PPRA and NEPRA ordinance, Act rules & regulations thereby committing corruption & corrupt practices.”

 

Tahir basharat Cheema, MD PEPCO: Offences include misuse of authority as MD /CEO PEPCO granting approval to illegal & unlawful post bidding amendments to the RSC; and willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as MD /CEO PEPCO

 

“Mr. Tahir Basharat Cheema as MD /CEO PEPCO illegally & unlawfully approved post bidding amendments to the RSC which included increase in down payment from 7 to 14 %, establishment of SBLC, establishment of FPLC paving the way for deemed generation that would have resulted in payment to the seller even though it was not generating any electricity & increase in rental term plus amendments to the termination charges payable on termination of the RSC. All these amendments were in gross violation of transparency and were designed to cause loss to the GOP and passing of illegal & unlawful benefits & concessions to the sponsors.

 

“Mr Tahir Basharat Cheema as MD PEPCO approved a proposal for increase in down payment to 14% in violation to the terms & conditions of the bidding, RSC & applicable laws resulting in non transparency, illegality & unlawfulness which were ultimately declared by the Supreme Court of Pakistan as void ab initio. Furthermore, Mr Tahir Basharat Cheema as MD PEPCO caused the Board of PEPCO to accord approval to a proposal substituting SBLC with GOP guarantee in violation of PPRA rules & transparency and similarly effected changes in the termination charges thereby causing or attempting to cause loss to the government and passing of undue benefits & advantages to the sponsors.”

 

“Khalid Saeed Chairman NEPRA: Offences include misuse of authority in approving tariff for the rental power project despite lack of transparency & illegalities committed during the bidding process; and willful failure to exercise authority to prevent the grant, or rendition of any undue benefit or favor as Chairman NEPRA.

 

“Mr Khalid Saeed Chairman NEPRA approved the proposed rental tariff for the project although admittedly it was higher than the tariff determined by the NEPRA in the cases of IPPs with similar technologies in contravention of NEPRA law, rules & regulations without regard to the consumers interest and in violation of ECC decision of Feb 2008, wherein the tariff for the RPPs was directed not to exceed first 10 years tariff of the IPPs. Mr. Khalid Saeed, Chairman along with other members of the NEPRA were in full knowledge and observed that NPGCL while entering into contract with the sponsor it had violated a number of provisions of NEPRA rules & regulations which affected the transparency of the process in awarding RPP and instead of rejecting the proposal for tariff determination by NPGCL willfully determined & approved the tariff petition. In particular, it may be mentioned that the tariff was approved by the authority including Mr. Khalid Saeed, Chairman, despite the fact that RFP was not approved by NEPRA, the bidder had not submitted the plant details i.e, equipment supplier, make, model, useful life & reference technical parameters etc, documentary evidence of financial worth of the sponsors was not considered, non-conformance with the terms of RFP, non approval of bid evaluation report & draft rental services contract by NEPRA, violation of PPRA rules, etc.”