ISLAMABAD: The Public Accounts Committee (PAC) has declared the payment of Rs 480 billion to IPPs (Independent Power Producers) under the circular debt illegal
The PAC meeting, held the chairmanship of National Assembly opposition leader Khursheed Shah, directed the water and power secretary to conduct an audit for productive capability of private power companies and ensure the return of billions of rupees to the national exchequer.
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The auditor general of Pakistan (AGP) informed the meeting that the payment of Rs 980 billion under the circular debt by the current PML-N government was a mega corruption. He said that the government should have got an audit done of power companies before paying Rs 480 billion, but it made the payment in violation of the rules and regulations.
The AGP, in his report, said that the payment of Rs 342 billion to the Potomac Electric Power Company (Pepco) was illegal because the audit was necessary prior to the payment, but the government did not fulfil this responsibility. The report says that Rs 18.50 billion have been paid in surplus to these power companies under the head of general sales tax (GST).
