LAHORE: The Ministry of Energy has expressed concern over the procurement of 132kV circuit breakers worth millions of rupees by distribution companies (Discos) from blacklisted firms via local suppliers. The ministry has directed all Discos to submit detailed reports on these transactions.
This directive follows formal complaints from engineering associations within Gujranwala Electric Power Company (Gepco) and Multan Electric Power Company (Mepco). The complaints highlighted significant issues with these purchases, as reported by Dawn.
An anonymous official condemned Gepco and Mepco for issuing purchase orders to local firms that procure equipment from blacklisted companies. “The Asian Development Bank (ADB) recently banned an international company for two years for such practices, yet this same company is supplying equipment to local firms that Gepco and Mepco are buying from,” the official explained.
Faisalabad Electric Supply Company, upon discovering similar practices, refused to make purchases from these local suppliers.
Documents obtained by Dawn show the Power Division instructing all Disco CEOs to report on this issue promptly. The ministry’s letter emphasized the need for transparency and accountability in procurement practices, citing allegations of corruption and collusion.
The engineering associations’ letter detailed corrupt practices in Discos, especially Gepco and Mepco, accusing procurement departments of supporting local supplier mafias. The associations questioned why Discos were paying significantly higher prices for circuit breakers when cheaper options were available.
The associations called for a thorough investigation and requested the appointment of an honest inquiry officer and an expert from the Public Procurement Regulatory Authority (PPRA) to oversee the probe.
An ADB letter also highlighted fraudulent practices by a foreign firm, which submitted falsified compliance test certificates in bids for ADB-financed contracts. The debarment of this firm extends to all its subsidiaries and branches until May 2025.
A senior ministry official mentioned that while the ministry usually does not interfere in Disco affairs, it can refer such matters to the PPRA, the body responsible for investigating procurement irregularities.
Attempts to contact the CEOs of Gepco and Mepco for comments were unsuccessful.
Story by Khaleeq Kiani
