The Federal Investigation Agency (FIA) has arrested two former Faisalabad Electric Supply Company chief executives over an alleged Rs. 12 billion electricity fraud. Investigators say the scam caused significant financial losses to the national exchequer.
Former FESCO CEOs Khurshid Alam and Ahmad Saeed Khan were taken into custody during the investigation. Meanwhile, one company director was arrested at Lahore Airport.
FIA Expands Investigation Into Alleged Corruption
A local court granted the FIA five-day physical remand of the arrested suspects. Consequently, investigators will continue questioning them over the alleged corruption case.
The FIA also registered a case against the chief executive and five directors of two industrial companies. Additionally, four former chief executives have been named in the investigation.
Authorities placed all accused on the Exit Control List to prevent foreign travel. Furthermore, the case has been registered at the FIA Composite Circle Faisalabad.
Investigators invoked the Prevention of Corruption Act and several Pakistan Penal Code provisions. These include charges of criminal breach of trust, cheating, forgery and criminal conspiracy.
Alleged Electricity Scheme Caused Heavy Losses
According to investigators, the accused allegedly colluded between 2007 and 2015. They reportedly manipulated electricity purchase and sale arrangements for unlawful financial gains.
The FIA alleged one company sold electricity to FESCO above rates approved by the Central Power Purchasing Agency. Simultaneously, it allegedly received subsidised electricity from FESCO as a bulk consumer.
Investigators also accused another company of obtaining subsidised natural gas from Sui Northern Gas Pipelines Limited. They claim the company presented itself as a captive power plant to receive benefits.
Moreover, the FIA alleged the company submitted misleading documents before the National Electric Power Regulatory Authority. Officials believe these actions enabled the accused to secure illegal financial advantages.
The investigation remains ongoing as authorities continue collecting evidence and questioning suspects connected to the alleged corruption case.
