ISLAMABAD – Chief Justice Iftikhar Mohammad Chaudhary, while hearing a suo moto case of irregularities in the advance payment to Naudero-II and Guddu Rental Power Projects, has directed the companies’ counsel to return with mark-up the 14 per cent advance payments they had received for installing the RPPs.
A three-member bench was hearing the suo moto notice on Tuesday taken on a media report.
According to the news report, Nepra had declined to approve a fresh tariff for Naudero-II after discovering that the projectÂ’s equipment belonged to Guddu Rental Power Project, which had been dismantled illegally.
The government had paid 14 per cent advance amount of $11.28 million to Pakistan Power Resources (PPR) in April 2010 for Naudero-II, while 14 per cent advance payment of $10.15 million was paid for the same machines for Guddu rental power plant having a capacity of 110 MW.
Dr Pervaiz Hassan, counsel for the PPR, stated that the Guddu power project, which was signed on 23-02-2008, was signed off on December 4, 2010. The Chief Justice asked him, “Your client had taken money from both the projects for the same machines.”
Justice Khalil-ur-Rehman Ramday stated, “You signed off when the Supreme Court had taken suo moto notice.”
The court directed Shahid Hamid, who was representing the Walter Power International that has 35 per cent share in Pakistan Power Resources, and Dr Hassan, the counsel for shareholder of the PPR, to take instructions from their clients for submitting advance payments with mark-up and adjourned the hearing for today.
During the course of proceedings, the Chief Justice remarked, let the institutions be strengthened and there is no need to be afraid of foreign governments. He said, why you are frightening the court. Has the WikiLeak enhanced the government’s respect, he said, and added, “If you would surrender in everything, then no one would respect you.”
Justice Ramday said, “Wrongly or correctly we are the custodian of the country and it is our concern that money is brought back.” He further said, even if they had to supervise the investigation, they would not hesitate.
Agencies add: Chief Justice Iftikhar Muhammad Chaudhry said on Tuesday that criminal cases will be registered against all those responsible for making fraudulent deals.
The Chief Justice noted that fraud is apparent in the Guddu and Naudero rental power agreements, adding that the judiciary will not allow people to waste the nationÂ’s wealth.
The court has taken notice on a newspaper story saying that NEPRA detected irregularities in advance payment to Naudero-II and Guddu Projects. The story further claimed that NEPRA declined to approve tariff for Naudero-II after discovering that projects equipment belonged to Guddu Rental Power Project. The Walters Power International had entered into contract for completion of $52 million natural gas-fired 51 megawatts power plant in Naudero II, while working upon a second project in Guddu, which was expected to cost about $70 million and produce 110MW. At the outset of proceedings, Shahid Hamid, counsel for Walters Power International, prayed the court to grant him few days as he would be consulting David Walters, president of WPI in US over return of principle amount and mark up issue. The Chief Justice told him to consult his client and make statement about return of the amount along with bank interest.
Faisal Saleh Hayat, a PML-Q parliamentarian and petitioner, raised objection by saying that they had violated the contractual agreement and should be held responsible for violation. The Chief Justice told him that it was not their job, however, the main case was still pending and they would have to deliver their verdict. “We have announced our charter yesterday, the people will get tired of taking bribes but the court would not feel bogged down in taking notices of such issues,” he added. The Chief Justice expressing his displeasure over arguments of Shahid Hamid said, “What are being shown on TV about Wikileaks do not you know. We are an independent country, do not impress us by mentioning foreign influential people.” Shahid Hamid apprised the bench that David Walters, a US citizen and former Oklahoma governor, held million of shares in power sector and was not involved in any corruption case. He said the contract for Guddu power was signed on March 4 this year.
He said under a mutual contract, the equipment which had to be re-exported was transferred to Naudero II though in the usual circumstances it did not happen. He said it was a kind of renovation of contract which took place in October. The Chief Justice observed that it was their liability to return the amount with bank interest instead leaving it for the JENCO. To benchÂ’s query, Shahid replied that JENCO, another power company, had not fulfilled agreement with them as they failed to submit bank guarantee and determination of tax issue, therefore, they had to walk out of the contract. He further apprised that the company had given guarantee for advance payment on March 12 and got an amount of $11,36,666 in return on April 8 this year with total rental value of $80.5 million. He said the Naudero power plant II would have to generate 51 megawatts.
To benchÂ’s query, he admitted that due to an end to contract it had been capped. The Chief Justice pointed out that a news appeared on December 1 and the contract was withdrawn on December 4. Dr Parvaiz Hussain, another counsel, told that contract was rescinded in accordance with law and had nothing to do with the date. He said that PEPCO had not fulfilled its agreement over provision of fuel, site etc. While JENCO deputy chairman Abdul Malik apprised the bench that they were not required to look into the equipment while entering into a contract.