Islamabad
The Public Accounts Committee (PAC) has called for completing the tagging and revaluation of assets of power distribution companies (DISCOs) before their privatisation, proposing that the process should be halted until the actual value of their assets is determined.
The meeting, chaired by Acting Chairperson Shahida Akhtar Ali, also discussed the lapse of Rs1.22 billion from the Power Division’s grant.
PPP MNA Shazia Marri said the lapse of funds also caused difficulties for the public, adding that every department should hold itself accountable.
Officials informed the committee that a package for Balochistan was announced in 2008 for a 33-KV station, for which a design had been prepared. However, a revised PC-I was subsequently developed.
The Secretary Power Division acknowledged that the funds should have been surrendered on time.
Committee member Syed Hussain Tariq questioned whether any tangible outcome had been achieved despite the expenditure of such a huge amount. The committee directed audit officials to submit an efficiency report on the relevant project.
Discussing audit objections regarding the failure of various DISCOs to tag and revalue their assets, audit officials said every power company was legally required to maintain a proper asset register.
They informed the committee that several distribution companies had failed to tag their assets, stressing that the process should be completed across all DISCOs to prevent the disappearance of equipment and other assets.
Tariq Fazal Chaudhry suggested inviting the Minister for Privatisation to brief the committee on the matter.
Chaudhry Naseer Ahmed Abbas pointed out that Gujranwala Electric Power Company (GEPCO) owned land worth billions of rupees, while the Secretary Power Division clarified that the government was not handing over the land to anyone.
Syed Hussain Tariq questioned whether the government would be able to revalue assets across 13 districts if privatisation was planned for January.
Shazia Marri expressed concern that an important national institution could be privatised at an undervalued price and asked which companies had been shortlisted for the process.
The Secretary Power Division said the entire privatisation process was being handled by the Privatisation Commission.
Manza Hassan criticised the delay in completing the process, saying that failure to complete the required work within a year reflected poor performance. She questioned whether billions of rupees worth of assets would be sold for a nominal price and demanded that the Privatisation Commission be summoned.
She also referred to the privatisation of Pakistan International Airlines (PIA), where the airline and its assets had been separated for the sale process.
The committee members also raised concerns about the future of DISCO employees following privatisation. Syed Hussain Tariq asked about the fate of the existing workforce, while Shazia Marri questioned what guarantees would be provided regarding job security and protection.
The committee decided to summon the Privatisation Commission for a detailed briefing on the proposed privatisation of DISCOs and granted additional time to the Power Division to address the audit objections.
The Acting Chairperson stressed that privatisation should not proceed until the actual value of the assets was established.
