ISLAMABAD, Dec 7: Wapda has been ordered to hold an inquiry into a loss of Rs 52.968 million due to irregular escalation of rates for the transportation of material by the authority’s managing director (D) during 1993-94.

The directive for probe was given by the chairman, Ad hoc Public Accounts Committee (APAC), H.U.Beg, on Friday while presiding over a meeting of the committee, which reviewed audit reports pertaining to Wapda for the financial year 1999-2000.

Among others, who attended the meeting, were Lt-Gen Talat Masood, Muzaffar Ahmed, Hassan Bhutto, Syed Shaukat Hussain and S.M.Zafarullah, Wapda chairman Lt-Gen Zulfikar Ali Khan and the Secretary, Water and Power, Hamid Hasan.

The audit department pointed out excessive payments to contractors, wastage and misappropriation of millions of rupees in various projects of Wapda, in its special reports for the year under review.

The APAC was told that the contract of M/s Tracon Service was terminated on Dec 27,1992, by the then Wapda M.D.(D) on the request of the contractor who had otherwise demanded 60 per cent increase in the rates. Later, fresh tenders were invited in January 1993. Surprisingly, however, instead of awarding contract to the lowest bidder, the contract for transporting material was given to the previous contractor on enhanced rates (59%).

M/s Tracon Service were neither the lowest bidder nor included in the gallop tender. APAC chairman took a serios view of this and raised an objection as to why the first contract was terminated and why, in the absence of any clause on enhancement of rates, the work was not carried out on cost/risk basis.

He, therefore, asked the Wapda chairman da to hold an inquiry and submit a report to APAC within one month.

The APAC chief further directed the Wapda chairman to hold a fresh inquiry into an excess payment of Rs2.558 million to the contractor upon variation order in the thermal power project, Muzaffargarh, during 1995.

Similarly, he ordered recovery of Rs374,614 and initiation of disciplinary action against five officials of Wapda for non-clearance of transit pass security (amount) by M/s Mono Impex (Pvt).Ltd for the supply of material to Sui gas field.

The committee deferred some paragraphs of the special audit report under review, and asked the wapda chairman to apprise of facts about the contracts for high-voltage transmission lines that had caused a loss of Rs1,026.400 million due to the award of contract at higher rates.

The committee further directed Wapda to pursue the case with the ministry of commerce for the realisation of insurance claim from the National Insurance Corporation amounting to Rs1.719 million pertaining to the restoration of stone apron of spillway at the Hub dam, Karachi.

KESC: Earlier,the Wapda chairman pointed out some practical difficulties being faced in the privatization of KESC. He said that for an investment of Rs82 billion to offset the liabilities, purchasers were demanding Rs 20 billion guarantee, which was such a condition as could not be met by the authority.