Staff Report

ISLAMABAD: The Supreme Court of Pakistan on Tuesday heard the case of alleged corruption in rental power projects, observing that report for IPPS was not factual, SAMAA reports.

During the hearing, Chief Justice Iftikhat Muhammad Chaudhry said in his remarks that capabilities of IPPs were not deliberately utilized. “If independent power producers were capable, why the government relied on rental projects,” the CJP asked, saying that report for IPPs was based on ‘hypotheses’.

During the course of hearing, the CJP addressed Khawaja Tariq Rahim, the counsel of Pakistan Electric Power Company Limited (PEPCO), and said Asian Development Bank’s report “is a charge-sheet against the government, in which the bank has pointed out flaws and irregularities in the project”.

“None other than the rental project of Gulf is operational. Neither the government could get taxes nor electricity; instead, it suffered financial loss. But NEPRA is still harping on the same claim that government’s agreement is transparent.”
 
He said power tariffs were skyrocketed in the pretext of fuel adjustment. “Why accords were signed when there is not gas in the country?” the CJP asked.

Contending before the jury, Khawaja Tariq Rahim dismissed the impression that power projects were started to grant someone, saying “they were started keeping in view country’s demand and policy”.

He told the court that money had been taken back from the companies failed to generate power as per the agreement. SAMAA

The hearing was adjourned till tomorrow (Wednesday). SAMAA