Textile mill to pay Rs7m power bills in eight installments
June 01, 2012
ISLAMABAD: A four-year old dispute between the Faisalabad Electric Supply Company (Fesco) and a textile mill owned by Foreign Minister Hina Rabbani Khar’s husband over Rs70 million outstanding power bills has been resolved with the agreement that the firm will clear the hefty dues in eight quarterly installments, spanning two years.
“The dispute dating back to 2008 has been hammered out amicably,” Fesco’s Faisalabad-based Billing Director Khurshid Alam told The News when contacted. He denied the presence of any political pressure forcing the power utility to consent to easy repayment installments instead of disconnecting its power supply.
When approached, Finance Director of the Galaxy Textile Mills Limited Jhang Arshad Iqbal said the foreign minister has nothing to do with this business. But he replied in the affirmative when asked whether the mill was owned by her husband.
Three days back, a private TV channel displayed the bill on its screen and claimed that the owner will pay it back in 23,333 monthly installments of Rs3000 each.However, Arshad Iqbal said that it was a ridiculous to assert that such a low amount of monthly installment has been fixed for a business concern.
He referred to a statement issued by the Fesco clarifying the situation.Khurshid Alam said that of the eight installments, the company paid the first one amounting to Rs2.5 million in March this year.
There is no default by it so far, he said adding that the issue has been resolved as per Fesco/Pepco (Pakistan Electric Power Company) rules. Khurshid Alam said in case of corporate companies Fesco do such settlements as per the rules.
Asked why power supply to the firm was not cut off while the power utilities resort to this extreme step in the case of ordinary consumers very liberally, the official said that industries have to be treated differently.
He said the installments were done with the ratification of the Fesco’s board of directors on February 24 this year. Recovery of the outstanding arrears of Rs70.246 million has been decided with eight quarterly installments starting at the rate of Rs2.5m, Rs5m, Rs7.5m and lastly Rs10m. This includes recovery of late payment surcharge, and interest on the prevailing bank rates, he added.
Khurshid Alam said the Fesco has secured advance post-dated cheques against the installments and no special facility has been provided to the firm without waiving late payment surcharge or interest.
He claimed that all conditions for installments were extremely strict and power supply to the textile mills was liable for disconnection even if one installment was delayed.It is evident from the declaration of assets and liabilities filed by the foreign minister with the Election Commission of Pakistan (ECP) that she has no shares in the Galaxy Textile Mills.
However, she has not given the assets and liabilities of her husband, which is required under the law.Her declaration shows that Ms Khar has more (unexplained) liabilities, Rs18678800, than her total assets. She has jewelry valuing Rs3m, Rs217000 cash in hand and Rs1m as bank balance. She owns the famous Polo Lounge in Lahore worth Rs1232307; and agriculture land in her native Muzaffargarh district and a plot in Islamabad valued at of Rs13m.
“The dispute dating back to 2008 has been hammered out amicably,” Fesco’s Faisalabad-based Billing Director Khurshid Alam told The News when contacted. He denied the presence of any political pressure forcing the power utility to consent to easy repayment installments instead of disconnecting its power supply.
When approached, Finance Director of the Galaxy Textile Mills Limited Jhang Arshad Iqbal said the foreign minister has nothing to do with this business. But he replied in the affirmative when asked whether the mill was owned by her husband.
Three days back, a private TV channel displayed the bill on its screen and claimed that the owner will pay it back in 23,333 monthly installments of Rs3000 each.However, Arshad Iqbal said that it was a ridiculous to assert that such a low amount of monthly installment has been fixed for a business concern.
He referred to a statement issued by the Fesco clarifying the situation.Khurshid Alam said that of the eight installments, the company paid the first one amounting to Rs2.5 million in March this year.
There is no default by it so far, he said adding that the issue has been resolved as per Fesco/Pepco (Pakistan Electric Power Company) rules. Khurshid Alam said in case of corporate companies Fesco do such settlements as per the rules.
Asked why power supply to the firm was not cut off while the power utilities resort to this extreme step in the case of ordinary consumers very liberally, the official said that industries have to be treated differently.
He said the installments were done with the ratification of the Fesco’s board of directors on February 24 this year. Recovery of the outstanding arrears of Rs70.246 million has been decided with eight quarterly installments starting at the rate of Rs2.5m, Rs5m, Rs7.5m and lastly Rs10m. This includes recovery of late payment surcharge, and interest on the prevailing bank rates, he added.
Khurshid Alam said the Fesco has secured advance post-dated cheques against the installments and no special facility has been provided to the firm without waiving late payment surcharge or interest.
He claimed that all conditions for installments were extremely strict and power supply to the textile mills was liable for disconnection even if one installment was delayed.It is evident from the declaration of assets and liabilities filed by the foreign minister with the Election Commission of Pakistan (ECP) that she has no shares in the Galaxy Textile Mills.
However, she has not given the assets and liabilities of her husband, which is required under the law.Her declaration shows that Ms Khar has more (unexplained) liabilities, Rs18678800, than her total assets. She has jewelry valuing Rs3m, Rs217000 cash in hand and Rs1m as bank balance. She owns the famous Polo Lounge in Lahore worth Rs1232307; and agriculture land in her native Muzaffargarh district and a plot in Islamabad valued at of Rs13m.
