ISLAMABAD: The Supreme Court Thursday ruled that the funds collected for construction of Diamer-Bhasha and Mohmand Dams would be utilised for purchasing machinery for power generation and would not be spent on the repair work.
A five-member larger implementation bench of Diamer-Bhasha and Mohmand Dams, headed by Chief Justice of Pakistan Justice Umer Ata Bandial, heard the case.
The court authorised full access to the Auditor General of Pakistan to check all the funds and ensure that no irregularity was being made in their utilisation. “You are free to have full access to the dam fund and play your constructive role in this national cause,” the chief justice told the Auditor General of Pakistan.
“We are all trustees and this amount is the Amanat of the public, which will be used for their benefits as well,” the chief justice further remarked.
Addressing the auditor general, the chief justice said, “One of your representatives told the parliament that they had no access to the dam fund. We make it clear that the Auditor General of Pakistan has full access to the dam fund.”
The chief justice said the details pertaining to the fund donors were available on the Supreme Court’s website and they will inform the public about the machinery being purchased through their funds for power generation.
“Better nations always face challenges and the construction of these dams is a challenge for the whole nation to overcome the power shortages,” the Chief Justice added.
“It’s a welcome sign that even today people are donating to the dams fund,” the chief justice remarked.
The State Bank representative informed the court through video link from Karachi that the dams fund had collected Rs16.350 billion. The chief justice asked the representative about the banks that deposit money in the dams fund.
The representative replied that all the commercial banks deposited funds with the State Bank adding that after taking guidance from the apex court, investment was being made through the government securities. He further informed the court that not a single penny had been withdrawn from the dams fund for any other expenditure.
Earlier, at the outset of hearing, Secretary Power Division told the court that the circular debt stood at Rs2.6 trillion adding that a further increase was expected. He further informed the court that some grid stations received over 90 percent complaints of power theft adding that last year Kesco provided Rs95 billion worth of electricity but received only Rs25 billion in bills.
“Even our own people are involved in power theft,” he said, adding that no action was taken wholeheartedly against those responsible.
“If this is the situation of Disco, then why don’t you privatise it,” the chief justice told the official saying both the government and IMF had reservations about the circular debt.
Secretary Power Division, however, said that there had been an improvement in the circular debt after increasing the price of electricity. He further submitted that there was an annual shortfall of Rs400 billion in lieu of sale and purchase of electricity.
Barrister Saad Rasool, counsel for Wapda, told the court the construction of dams was being affected due to non-payment to contractors.
Justice Jamal Khan Mandokhel, another member of the bench, observed that maybe due to shortage of money the government was not able to make payments.
Chief Justice Umer Ata Bandial observed that the transmission lines were very much important for the project. The secretary water informed the court that instructions had been issued for release of Rs2.4 billion in this regard.
The counsel for Wapda further said work on construction of dams was greatly affected due to the last year’s floods and security situation adding that the floods had caused loss to the Mohmand Dam infrastructure.
Similarly, he said shortage of funds was also an obstacle in the construction of dams while the funds allocated in the PSDP were not released adding that due to Covid, international experts had also left the country, pushing the project one year back.
The counsel further told the court that the Power Division was required to give Wapda Rs240 billion. At this, the chief justice asked the secretary Power Division as to why it was not paying Wapda the required amount.
Meanwhile, the court adjourned the hearing for some months.
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