ISLAMABAD: A summary for providing financial relaxation and amendments in agreements with the Karachi Electric Supply Company was presented to the Economic Coordination Committee of the cabinet in 2009 in violation of rules and then prime minister Yousuf Raza Gilani presided over the ECC meeting — an unusual practice.

This was revealed by senior officials of the cabinet division during a meeting of the sub-committee of the senate’s standing committee on water and power. The meeting was presided over by Shahi Syed of the ANP.

Senior officials of the water and power ministry confirmed that amendments in the agreements were made without fulfilling legal and constitutional requirements. The representatives of the cabinet division said the summary for making amendments was moved on a directive of former prime minister Gilani and the ECC decision was not ratified by the federal cabinet, a requirement under the rules of business.

Shahi Syed said the water and power ministry was equally involved in amending the agreements that provided an undue bailout package of over Rs70 billion to the KESC at the cost of the nation.

Senator Humayun Khan Mandokhel termed the amendments “treason against the nation”. He said the water and power ministry had declared Al Jomaiah group — the original buyer of the KESC — as a defaulter in 2008 and yet the government approved the Rs70 billion bailout instead of taking over the company, as required under the original agreements.

Mr Mandokhel said the decision for diversion of 650MW to the KESC from the national grid was taken after bypassing the Council of Common Interests, which was a constitutional violation and hence should be done away with without delay.

Shahi Syed said a colossal loss of billions of rupees was caused to the national exchequer for personal interests. He said the CCI, ECC and other institutions should not compromise national interests by signing illegal and unfair agreements with private parties.

He lamented that some institutions were still not providing full details and documentary evidence of wrongdoings in the KESC agreements. Despite knowing that the KESC was not capable of improving electricity situation in Karachi, the ECC had signed a revised agreement by allowing another company to become part of the plunder, he said.

Shahi Syed said under the original agreement, the KESC should have utilised its full capacity of 2,100MW and then imported 350MW from the national grid, but instead of imposing fines on the KESC for not utilising its own capacity, the import from the national grid was increased to 650MW and then touched 950MW, putting the entire country under stress.

Water and power secretary Anwar Ahmad Khan said that if the government and civil servants followed rules and regulations, such practices could be controlled.

A joint secretary of the water and power ministry told the sub-committee that there was no mechanism under which the government could stop the KESC from taking more than 650MW from the national grid.

A joint secretary of the CCI told the sub-committee that on an objection from the Punjab government, the CCI had decided in November last year to reduce diversion of electricity to KESC from 650MW to 350MW, but despite repeated letters to the departments concerned, the CCI decision had not been implemented as yet.