In Lahore, the Ministry of Energy has expressed deep concern over the purchase of 132kV circuit breakers valued at millions of rupees by distribution companies from blacklisted firms through local suppliers. This action prompted the Ministry to request all Distribution Companies to provide a detailed report on the matter.
The request for this report follows written complaints filed by engineering associations from Gujranwala Electric Power Company (Gepco) and Multan Electric Power Company (Mepco) regarding these purchases.
An official, speaking on condition of anonymity, lamented the audacity of Discos, particularly Gepco and Mepco, in placing orders with local firms known to procure circuit breakers and equipment from blacklisted entities. The official highlighted that the Asian Development Bank recently imposed a two-year ban on an international company involved in such practices, yet this same company continues to supply circuit breakers to local firms contracted by Gepco and Mepco, totaling nearly Rs1 billion.
Documents obtained reveal that the Power Division has instructed all Disco CEOs to submit their reports on the issue urgently. The Ministry’s communication, authored by the section officer (Disco-II), enclosed a copy of a corruption complaint related to Gepco Tender No. NCB-23 and Mepco’s tender, urging swift action and reporting to the Ministry.
According to the engineers’ associations, officers within Discos, especially Gepco and Mepco, have engaged in rampant corruption, collusion, coercion, and obstructive practices to favor local suppliers and agents linked to imported equipment suppliers. They questioned why these Discos opted to procure circuit breakers at significantly higher prices from these firms when cheaper alternatives were available elsewhere.
The associations have called for a thorough investigation into these practices and requested that all Discos provide a detailed list of their purchase orders issued to various firms. They also suggested appointing an impartial officer and a Public Procurement Regulatory Authority (PPRA) expert to conduct the inquiry.
The issue has drawn attention from the Asian Development Bank’s Office of Anticorruption and Integrity, which noted fraudulent practices involving falsified compliance test certificates submitted by a foreign firm bidding for a contract financed under a project. The firm has been debarred for two years, a sanction extended to all its subsidiaries and branches.
While acknowledging these concerns, a senior ministry official clarified that the ministry typically refrains from direct intervention in Disco affairs, citing their independence and regulation by their respective boards. However, the official emphasized that the ministry would forward reports to the PPRA for further investigation as mandated.
Efforts to reach the CEOs of Gepco and Mepco for comment were unsuccessful at the time of reporting.
