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ISLAMABAD: Prime Minister Nawaz Sharif has ordered two separate audits — one by an audit firm of international repute and the other by the auditor general of Pakistan – into matters relating to the 525MW Nandipur power project.
Minister for Planning and Development Ahsan Iqbal said at a news conference here on Monday that the prime minister had also ordered an inquiry to ascertain why the plant remained closed for four or six weeks after completion and fix responsibility in the event of negligence.
Also read-editorial: Nandipur fiasco
Mr Iqbal said the prime minister had also ordered that an audit firm of international repute and the auditor general of Pakistan be assigned to determine if misappropriation had taken place in the project.
He said the project had been started in 2009 when the PPP was in power and claimed that one of its ministers had kept the file in his drawer for ulterior motives for over one year.
He said the project was now a reality, its test trial complete and it was waiting to be given on operation and maintenance contract which had been delayed.
He said a judicial commission appointed by the Supreme Court and headed by a former reputed senior judge had reported Rs130 billion loss to the national kitty because of the alleged sabotage by the PPP minister. He said that the contractors had left the country and machines and material kept rusting for years at the port.
Mr Iqbal said that the PML-N government had taken upon itself to revive the project to avoid international arbitration by contractors which seemed going against Pakistan and could have earned a bad name for the country among the international community.
“It is like a thief blaming the cop,” the minister said, referring to criticism coming from the PPP over the Nandipur fiasco, adding that it was the PPP that had harmed the nation by destroying a national project.
Another cabinet member said that the adoption of high sulphur fuel oil (HSFO) for a combined cycle plant to be run on natural gas was the basic flaw in the power project because it was technically difficult to run such a big unit on the HSFO that also contained a lot of contamination when brought from Karachi to Nandipur.
Published in Dawn, September 15th, 2015
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Comments (68) Closed
Sep 15, 2015 07:24am
Auditing is basically an examination of books, accounts, documents and vouchers of an organization to ascertain accuracy of financial statements in question… Beside audit Mr. PM a thorough “Forensic Investigation” is need to find the exact cause of the “Nandipur Debacle”…
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Sep 15, 2015 07:24am
Nice move by PM. Let's what unfolds and how long it would to find culprits.
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Sep 15, 2015 07:25am
Good step!
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Sep 15, 2015 07:25am
Inquiries ordered by PM and notices taken by CM Punjab are excellent tricks by Sharif brothers to dump the issues.
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Sep 15, 2015 07:38am
Mr Raheel Sharif must look to this case as the corruption of this magnitude is responsible for unemployment,poverty and hunger in this country leading to emergence of petty criminals and then to hardened criminals and terrorism in this country. This is a test case for Army courts and will lead to all other mega corruption cases for scrutiny and action.Finances and terrorism is interrelated.
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Sep 15, 2015 07:41am
Its a joke! Please catch those responsible and put them behind bar. No concession this times to your friends or foe.
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Sep 15, 2015 07:59am
Pleasant surprise to know that the Auditor general of Pakistan is alive and healthy. Wish him happy auditing.
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Sep 15, 2015 08:00am
An independent audit by the international Auditing firm is essential to clear the air and bring semblance of transparency; this step should have been taken much earlier - still a wise move, Mr. PM.
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Sep 15, 2015 08:10am
@Sami please suggest a better action
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Sep 15, 2015 08:16am
@Sami . PM has ordered an audit of the Nandipur project by an international repute audit firm. It appears you are not satisfied if they order an audit or not. Its hard to satisfy everyone especially people like you who will always find a fault regardless what the government does.
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Sep 15, 2015 08:17am
This doesn't absolve Punjab from the kind of corruption cleanup taking place in Sindh. Punjab, and the remaining provinces, should also be cleansed from corruption in the same manner as is happening in Sindh.
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Sep 15, 2015 08:20am
@Sami there is no issues that hasn't been dealt with unless u have seen it with ur eyes everything they have touched had progressed
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Sep 15, 2015 08:29am
It's corruption and nepotism.
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Sep 15, 2015 08:30am
Well done. That's the way to go.
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Sep 15, 2015 08:35am
This project is looking like the waterloo of PMLN. Even if the project was operational, 525MW won't put a dent in Pakistan's power woes, and won't improve the balance of payments position because of the use of furnace oil for its operations. When it comes to energy projects, there are no short cuts. Nandipur, Bahawalpur Solar park are just gimmicks to divert the attention of the nation, and even those diversions did not work. Pakistan needs to commit both financial and technical resources to work on hydropower projects part of Wapda's master plan. These are long term projects which will help resolve the energy issues on a long term basis, while at the same time improving the energy mix of power produced.
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Sep 15, 2015 08:43am
@Safdar I would suggest strengthening the institutions through their independence and profession bureaucracies for better management to avoid such type of malpractices.
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Sep 15, 2015 08:43am
It's a start. This should probably not become a discussion of cleaning up Sindh versus the rest of Pakistan. Quite frankly, the whole country needs it but better to start in Sindh than to just keep on waiting for it to happen at all.
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Sep 15, 2015 08:58am
Dumping of major corruption cases by our politicians through novel ideas is the talk of the town.After 10 years where this country will be rated economically and socially is a wide guess due to nonstop able and rampant corruption.
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Sep 15, 2015 09:03am
Nandipur should be teamed up with Neelum/Jhelum, QA Solar Energy project, Circular debts and the upcoming LNG project to investigate how Sharifs destroyed/exploited the energy woes of Pakistan.
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Sep 15, 2015 09:08am
@M Jamal why we always point fingers only on civilians!!! my naive friend just look into trillions of rupees looted under the cover of DHA's and other commercial ventures and you would simply be awed.Everyone should be taken to task
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Sep 15, 2015 09:08am
Why does he get active after the news in media.he should know every moment what is going on.Especially in energy related projects.
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Sep 15, 2015 09:19am
Please appoint some one to find out why can't we have full time ministers in this house of majority? Defense, Energy, Foreign, Trade, Science and Technology etc.
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Sep 15, 2015 09:39am
@Safdar: How about accepting RESPONSIBILITY for their INCOMPETENCE.
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Sep 15, 2015 09:46am
@Zafar right on. Problem with sharifs is that they only think about next elections while considering projects. This thing worked in simple projects like Metro but proved to be a failure in complicated power projects which requires time and efficient planning.
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Sep 15, 2015 09:56am
@Sami Exactly but this nation never understands their tactics.
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Sep 15, 2015 10:06am
This is a great joke with the nation. It shows that this government is also continuously striving to find out the ways to catch the money through hidden hands.
At present when all of the cities of the country are looked dark almost in the night time. This is only due to our corrupt leaders.
I would like to know where are our enforcement institutes like NAB, FIA and so on? Why they do not investigate?
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Sep 15, 2015 10:11am
You know what is wrong with Nanadipur project. Don't try to play innocent. All these gimmicks will not let you save your face Mr.Prime Minister. I wish Punjab province corruption is also highlighted the same way it is done in Sindh.
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Sep 15, 2015 10:11am
The root cause of this problem is incompetence, negligence and corrupt elite.
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Sep 15, 2015 10:14am
Oh i see . The project has something to do with PPP. Might as well audit the project initiated by sitting government as well. it will surely enhance the credibility of the government. Let us be fair and just or else In the absence of justice, what is sovereignty but organized robbery?
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Sep 15, 2015 10:14am
Beyond thoughts . What a sorry state of affair.
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Sep 15, 2015 10:15am
Beyond thoughts.
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Sep 15, 2015 10:39am
No Mr. Ahsan, it's pot calling the kettle black....this project has been inoperational period - this is not a debate about 4-6 weeks. Also, no technically competent folks participated in visualizing this project. For once, own up to your mistake - you won't be any less of a human being.
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Sep 15, 2015 10:44am
Typical evasive tactic . Order an inquiry into the matter until a new issue comes along ( or is created) so that people would forget the older issue.
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Sep 15, 2015 10:54am
Awesome slap on the opposition's face
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Sep 15, 2015 11:00am
@Zafar solar energy isn't useless as you put it. If some party's could get the provinces to rally up for kalabagh instead of the opposite then yes hydropower would be feasible. Putting a dent in it is better than parts just sitting in containers being useless. And it's a start not an endgame. With petrol prices falling it isn't an unfeasible project. Putting a negative spin on everything is easy.
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Sep 15, 2015 11:02am
@Waqar destroyed??? Take a look at the 18+ hours of possessing in the PPP days. Destroyed...that's the electricity theft in KPK that's destroying the balance between payment and useage
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Sep 15, 2015 11:27am
@Akib You are not making any sense. Even by your logic, just because PPP was more corrupt does not mean PML is ok because it is less corrupt. This is a federal issue and has nothing to do with KPK, which btw produces more electricity than it needs, is the only province that has actually done something about electricity theft and is most organized compared to other provinces. The bigger problem than corruption and incompetence is the apologists who refuse to see the truth even when it is in their face.
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Sep 15, 2015 11:33am
Thats a nice way of saying forget about it.
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Sep 15, 2015 11:52am
Nawaz Sharif audit, firm of international repute and the other by the auditor general of Pakistan – into matters is a good step. Opposition can way in who to decide that who will be international reputable audit firm to make sure an independent and neutral audit has been conducted.
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Sep 15, 2015 11:59am
The things that will come out of this Audit are "Corruptions were found but they were not systematic".
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Sep 15, 2015 12:03pm
@awan very true.
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Sep 15, 2015 12:09pm
Audit, means more expenses without result.
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Sep 15, 2015 12:23pm
High time Mr PM. Now we know how many reminders you require before you will do something important to the nation.
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Sep 15, 2015 12:24pm
@Cowasjee The NS move / offer of audit is not meant for finding culprits.....rather it is to get a clean chit...as was the case with JIT formed to probe the Model town killings. How easy to understand such tricks.
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Sep 15, 2015 12:29pm
@Safdar There are and can be many better options than offering for an audit and that too by none other than the AGP. Why not by any well reputed audit firms ? Still better for the Shariffs to accept wrong doings and take the entire blame as it would be right course to adopt. By such an acceptance the size and images of Shariffs would not fall but rise.
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Sep 15, 2015 12:40pm
@Safdar Safdar better course is never to vote for them and be fooled over and over.
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Sep 15, 2015 12:57pm
@Safdar Independent bodies or Courts should do the audits. At least this is the practice taken by developed societies.
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Sep 15, 2015 01:02pm
@Irfan absolutely right. More waste of money.
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Sep 15, 2015 01:13pm
What if we get contradictory reports from the two agencies?
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Sep 15, 2015 01:15pm
PM orders audit but Lots of people saying corruption operation in Sind and also start in punjab? But where is that corruption operation? I don't see any operation in Sind. There are property frauds unimaginable in any other part of the country but not even 1 % has been investigated. MQM PPP and ANP divided Karachi for property business, who is investigating? PM should also ask an international organizational for property audit in Karachi. The poor and pakistan is the victim. Will any one do justice ever?
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Sep 15, 2015 01:25pm
Audit ? to get clearance for themselves.
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Sep 15, 2015 01:29pm
Audit by a non-government foreign company is preferable. After audit is completed, the results should be made public as well as presented in the Parliament
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Sep 15, 2015 01:31pm
Will it be investigative audit, limited scope audit or just commercial audit. Because without investigative and forensic audit, the objective cannot be achieved. It will be just a useless activity.
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Sep 15, 2015 01:55pm
Give the audit to Transparency International and act on its findings ruthlessly. Playing with the power generation projects with 400% cost escalation means 800% increase in power tariffs to cover it.
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Sep 15, 2015 02:17pm
they will come up with results that suits Sharifs ie there was no systematic corruption or failure but just irregularities :)
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Sep 15, 2015 02:19pm
Audit by PWC or Deloitte etc won't make a difference, its all for public consumption and cost to public as well. In any complex engineering project, if the core product is faulty and there is poor project management, it will inevitably result in costs going out of control. Auditors will state main issue for it all being late/over budget due to poor condition / rusting plant equipment. That'll be enough for PMLN to feed the public. Auditors may touch base on incompetency of project team but that will be treated as a minor issue by the government.
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Sep 15, 2015 02:29pm
And there should be defined timeline, should last for years...
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Sep 15, 2015 02:31pm
@Safdar better action is that there should be defined timeline like within three months it should public the result
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Sep 15, 2015 02:42pm
Audit against its own govt ???hahah. Nothing is going to happen and People of Pakistan are going to pay extra taxes against this mega corruption and gross mismanagement.
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Sep 15, 2015 02:49pm
Sharif family know how to fool people
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Sep 15, 2015 03:18pm
PM didn't let Imran protest even; Kaptaan just warmed up and demanded for audit which however was accepted by PM immediately
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Sep 15, 2015 03:48pm
Seems like Shahbaz Shareef taught Nawaz Shareef this trick.
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Sep 15, 2015 04:06pm
can anybody stop the illegal trade and loot of karachi municipal water, 50 % of which is sold by political mafia in to black market, leaving 50 % of population without drinking water.
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Sep 15, 2015 04:25pm
Dynamics are changing..which is more corrupt Sindh or Punjab?
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Sep 15, 2015 05:02pm
It is positive to hold inquiry against the persons responsible for irregularities in Nandi Pur power plants by PM. The nation hope that case will be concluded and is not supposed to drama as previous inquiry commissions formed just to delay the issue.
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Sep 15, 2015 05:22pm
It is good step by PM for ordering audits of Nandipur project . We hope that case will be concluded and responsible persons will be taken to account for corruption'
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Sep 15, 2015 06:09pm
Wonder how long that take? Would audit report be ready in 30 days, 90 days or 5 years?
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Sep 16, 2015 09:04am
525mw project is a good sign...but government is making castle in the air....
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