NAB has clarified a news item published in daily Jang on Sep 20, 2019 about NAB’s questions on Power Tariff of NEPRA and termed it absolutely baseless, concocted and bundle of lies. The contents of news item are clarified as under:
1. NAB Lahore is conducting only one inquiry on the issue of alleged illegal and fraudulent payments made by NEPRA officials to MS Nishat Chunian Pvt. Ltd in violation of the power purchase agreement . The said inquiry is dealing with only allegations of fraud , illegal payments made to above said IPP in excess of the amount agreed upon between the Govt and the company . These allegedly fraudulent payments were made on the basis of false , deceptive and misleading information provided by the company at the time of determination of tariff.
2. The inquiry does not challenge any provision of the agreement between the Govt and the company, rather it focuses only upon the alleged violations of the agreement made through cheating and fraud. Thus NAB has not indulged itself in the policy matters of the government or action done by NEPRA officials regarding executing the agreement with the said company. The accused persons are trying to screen off their alleged criminal offences by giving/creating a false impression as if NAB is challenging the agreements executed by NEPRA . As narrated above NAB inquiry is only focused on the violations of agreement by the company and the role of some NEPRA officials in allowing the Company in receiving illegal payments .
3. It is astonishing to note that during 2012-2013 , NEPRA itself wrote two letters to MS Nishat Chunian Pvt Ltd clearly mentioning that said company received illegal payments on the basis of false and deceptive information . This proves beyond any doubt that NEPRA believed that a criminal offence had been committed resulting in unimaginable financial loss to state exchequer for 25 years of agreement period on account of fraudulent payments to said company .
4. As per power purchase agreements the company was allowed to charge only 15 percent return on equity in electricity tariff, however the company charged ROE at the rate of 30 to 70 percent from 2010 to 2018 and obtained allegedly illegal payments from govt totalling Rs.10 billion . If illegal payments continue till 2035 ( 25 year agreement ) the loss would be almost Rs 30 billion.
5. It is also important to note that this loss has been calculated in consultation with NEPRA and reports of NEPRA verify these illegal payments to IPPs duly signed by NEPRA officials. Thus it s not only the NAB which had reached at the conclusion but the NEPRA reports are also authenticated NAB’s inquiry. In addition, NAB has also engaged services of reputed Chartard Accountant firm which has submitted a comprehensive report endorsing NAB’s inquiry.
6. Thus the impression being given by Jang Group without having official point of view of NAB that NEPRA officials are afraid of NAB which is totally false, wrong, baseless and concocted. No policy matter or act in good faith is under inquiry rather NAB is inquiring the same matter which was agitated by NEPRA in 2012-13 and was later hushed up for unknown reasons. NAB has once again requested Jang Group to kindly have official point of view of NAB before publishing any news which is our legal right. NAB has great regard for NEPRA official but there is no compromise on the question of corruption and corrupt practices as this is our national duty which we are performing under the dynamic leadership of Honourable Mr. Justice Javed Iqbal, Chairman NAB by adopting “Accountability for All” policy with the realisation of corruption free Pakistan.
