The FESCO power fraud case, in which the FIA arrested two former FESCO chief executives in July, centres on alleged losses of about Rs12 billion to the national exchequer, according to reports.
The Federal Investigation Agency says the accused colluded between 2007 and 2015 to manipulate electricity purchase and sale arrangements. These are allegations under investigation, and none has been proven in court.
What the FIA alleges in the FESCO power fraud case
According to the FIA, one company sold electricity to FESCO at rates above those approved by the Central Power Purchasing Agency, while also buying electricity from FESCO as a bulk consumer at subsidised rates. Another company allegedly obtained subsidised natural gas from SNGPL by presenting itself as a captive power plant, and allegedly told NEPRA it was a small power producer using documents investigators consider misleading.
The FIR was registered at the FIA Composite Circle Faisalabad under the Prevention of Corruption Act and several Pakistan Penal Code provisions, including criminal breach of trust, cheating, forgery and conspiracy. It names the chief executive and five directors of two industrial companies, along with four former FESCO chief executives.
Arrests, remand and company response
Two former FESCO chief executives were arrested, and a local court granted the agency five-day physical remand. A company director was also taken into custody at Lahore airport, while the other accused were placed on the Exit Control List.
Sitara Chemical Industries, whose chief executive was named in the FIR, denied the allegations as they relate to the company. In a notice to the Pakistan Stock Exchange, it said no court or authority had made any finding against it or its chief executive, that the reports mainly concerned another company, and that it would pursue legal remedies. It added that its operations continued without interruption.
Later court proceedings in the case were not reported at the time of writing.
Source: ProPakistani
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