Nishat Chunian demands Rs 8.35bn payment from Power Division after NAB ends probe

M/s Nishat Chunian Power Limited (NCPL) has requested the Power Division to release Rs 8.35 billion, which was withheld due to an investigation by the National Accountability Bureau (NAB). 

BR reported that the investigation against the company’s owners and management has been terminated.

In a letter to the Secretary of Power, NCPL stated that NAB has now terminated its investigation as conveyed through a NAB letter. Consequently, NCPL is requesting the CPPA-G to release the withheld amount of Rs 8.35 billion and return the undertaking, which has become ineffective. 

NCPL explained that the Central Power Purchasing Agency-Guaranteed (CPPA-G) withheld the amount during the NAB investigation, despite the payment mechanism outlined in the Master Agreement of February 11, 2021. An undertaking was also obtained from the company on November 15, 2021, for the said purposes.

The power company emphasised that under the Power Purchase Agreement of November 13, 2007, undisputed and due amounts cannot be withheld. 

NCPL noted that other Independent Power Producers (IPPs) under the Power Policy 2002, who had executed the Payment Mechanism with the Power Purchaser, have been fully paid.

It argued that continued withholding of the amount after the termination of the NAB investigation violates the terms of the Power Purchase Agreement and constitutes discriminatory action. 

The company reminded the Secretary of Power that government departments and agencies must consistently apply their practices and determinations.

The NAB letter stated that the inquiry involved allegations of falsified financial and technical information provided by NCPL at the time of tariff determination, leading to an allegedly inflated electricity tariff. The investigation was terminated under section 31-B (1) of the National Accountability Ordinance (NAO) 1999, and referred to the Ministry of Energy.

NAB clarified that the termination related only to the specific allegations and did not affect other potential cases under the NAO 1999. Copies of the NAB letter were also sent to former officials of NAB and CPPA-G, including Saeed-uz Zafar, Abdul Rahim Khan, Zafar Ali Khan, and Syed Insaf Ahmad.