Recovery of $120m: NAB all set to issue notices to Karkey

12/6/12 2:39 AM

Recovery of $120m: NAB all set to issue notices to Karkey

ISLAMABAD: Acting upon the apex courts Monday orders, the National Accountability Bureau (NAB) will issue notices to Turkish power company Karkey to pay $ 120 million owed to the state for failing to honour its agreement. The notices are ready and are likely to be sent to the Turkish firm today (Wednesday), NAB officials told The Express Tribune. Karkeys four ship mounted power plants will not be allowed to leave Pakistans port unless the payments are received, they added. NAB has already written to Port Qasim and other maritime authorities to not let the ships exit without the bureaus prior approval, said an official of the corruption watchdog requesting anonymity. According to the agreement signed between Karkey and the Pakistan government, the former was supposed to provide 260 megawatts of electricity, but ended up generating only 60MW. A sum of $ 79 million was reportedly paid in advance to the
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Recovery of $120m: NAB all set to issue notices to Karkey

12/6/12 2:39 AM

company, whereas it owes a total amount of $ 120 million for failing to live up to the agreement.

Karkeys ships arrived as part of the governments strategy to deal with the present energy crisis. However, the Supreme Court struck down the deals in March this year following allegations of widespread corruption. NAB, on its part, has not been able to stick to one course of action. Earlier this month, it issued orders to the port authority to let the ship mounted power plants leave the country, but revoked its decision following widespread criticism from the media. During Supreme Courts hearing on Monday, petitioner Faisal Saleh Hayat maintained that the total outstanding amount payable by Karkey was $ 128 million a claim NAB has challenged. The court warned NAB Chairman Admiral (retd) Fasih Bokhari that he would be held responsible in case any discrepancies were found later. The bench also asked NAB to initiate criminal proceeding
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Recovery of $120m: NAB all set to issue notices to Karkey

12/6/12 2:39 AM

against Karkey and other rental power plants (RPPs) following the courts ruling that the deals were illegal. However, NAB is yet to take any action against the Turkish firm.

During Supreme Courts hearing, NABs prosecutor-general KK Agha said the matter was a sensitive one given Pakistans relations with Turkey. In the past, some have accused NAB of being reluctant to take action against those who pushed for the unpopular deal as these include powerful functionaries including Prime Minister Raja Pervaiz Ashraf an allegation the bureau vehemently denies. One official of NAB said that action against the Turkish companys local partners will be taken soon. The bureau has arrested former managing director of Water and Power Development Authority (Wapda) along with some other officials. Liabilities worth Rs5 billion have already been recovered from nine RPPs, the official added. Published in The Express Tribune, November 28th, 2012.

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Recovery of $120m: NAB all set to issue notices to Karkey

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