News
Friday, January 14, 2011
SC orders rental power companies to return money with interest to govt* Threatens to refer case to FIA in case of non-compliance with order
* CJP says loot, plunder committed in contract of RPPs will not be allowed
By Hasnaat Malik
ISLAMABAD: The Supreme Court on Thursday directed rental power companies to return the money, with interest, that they had taken in advance from the government for power generation projects, but had failed to initiate the projects, by today (Friday).
The court also directed the Techno Power Plant to return Rs 780 million it had taken in advance for producing electricity, but had so far failed to initiate the project.
The court warned the counsel for the Techno Power Plant to ensure the return of the said amount within 24 hours with markup, otherwise its case would be referred to the Federal Investigation Agency (FIA).
The court also summoned the chief executive officer of the Techno Power Plant (Sahiwal) and the Askari Bank, Blue Area, Islamabad, manager, with whom Techno Power’s guaranties were lying, with records of the loan/advance granted to the plant on January 14.
A three-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday heard a suo motu case pertaining to corruption in payment to rental power projects (RPPs).
The chief justice observed that loot and plunder committed in the contract of RPPs would not be allowed.
During the hearing, Tariq Raheem, the counsel for the Pakistan Electric Power Company (PEPCO), informed the court that one power plant set up by Yong Jen had deposited Rs 1.26 billion in the national exchequer.
Justice Ramday asked the counsel to produce receipts of the money deposited by the firm, to which the counsel submitted that it would be placed on record soon.
During the last hearing, two rental power plants – Naudero-II and Guddu Power Projects – had deposited Rs 2.25 billion in the bank and presented receipts before the court. The court inquired as to whether there were such power companies who had taken advance money from the government but had not yet made their projects operational. The court was informed that two rental power companies, including the Reshma Power Plant and the Techno Power Plant, had taken advance money, but had yet to make their projects operational.
Courtesy www.dailytimes.com.pk