Concern expressed on Rs 480 bln payment to IPPs in 2013

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ISLAMABAD, Feb 16 (APP): Sub Committee of Senate Standing Committee on Finance, Revenue and Economic Affairs Thursday expressed concern on the issuance of Rs 480 billion payment to Independent Power Producers (IPPs) in 2013.
Senator Mohsin Aziz headed the committee’s meeting held in the Parliament House.
Mohsin Aziz sought invoices and money receipt record from Central Power Purchasing Agency (CPPA) and directed to present agreement in this regard to the Auditor General of Pakistan (AGP) for review.
He directed all the quarters concerned to come up with proper documents during the upcoming meeting.
He said following the finance committee’s decision, this subcommittee was constituted on December 1, 2016 to prepare a report on its findings on the circular debt issue.
On this occasion, the official from Auditor General of Pakistan (AGP) brief the committee on special audit report on clearance of circular debt.
He said the main objective of audit report to examine the clearance of circular debt and ascertain whether payment to power producers were made after proper reconciliation and checks.
He said the report also review the payment made against energy purchase price, capacity purchase price, late payment charges and supplemental charges.
The report recommended that there was need to employ prudent financial management to avoid irregular payments and piling up of circular debt.
Efficient working capital management should be ensured for making timely payments and minimizing late payment charges being paid to power producers.
The chairman committee also stressed the need to enhance the capacity and modernization of IPPs for producing electricity to domestic and industrial consumers in the country.
Senator Kamil Ali, Saud Majeed and officials from the ministry of Water and Power Federal Board of Revenue (FBR), Auditor General of Pakistan (AGP) and CPPA also attended the meeting.