ISLAMABAD - Water and Power Minister Khawaja Asif, who shocked the nation last week by announcing his failure in overcoming power crisis of the country, once again surprised the nation by admitting that he had been holding shares of a power generation company, though he claimed he sold them two years ago ‘on loss’.
“I held the shares of pak gen but sold them more than 2 yr back at a huge loss... (and) reported (it) in nomination papers... tax returns & EC returns...” Khawaja Asif twitted on Sunday.
The PML-N stalwart had been accused of having shares of a power generation company. It was alleged that Khawaja Asif holds shares worth Rs50 million in a company that received Rs7 billion in terms of power generation cost and huge mark ups last year when the government paid Rs480 billion to power generators to clear outstanding dues known as circular debt.
In just one-year time the circular debt has swelled again to almost last year’s figure of Rs480 billion. And, it has been alleged that the payments were deliberately stopped and circular debt was allowed to swell again to benefit power generation companies, which receive huge mark ups besides the actual amounts if not paid on time.
It has been alleged that the ministry of water and power itself created such conditions which caused delay in payments and resultantly the interest payable to power generation companies, including pakgen, whose major shares are allegedly held by Khawaja Asif, doubled and tripled.
In his tweets Asif has mentioned the name of the company by writing initials, Pak Gen. Pak gen is an abbreviation of Pakgen Power Limited, a public limited company, incorporated on June 22, 1995. The registered office of the company is situated at 53-A, Lawrence Road, Lahore. The principal activities of the company are to own, operate and maintain an oil fired power station having gross capacity of 365MW in Mehmood Kot, Muzaffargarh. The shares of the company are listed on the Karachi and Lahore Stock Exchanges.
Khawaja Asif said in his tweet that he sold the shares two years back at loss. Contrary to Asif’s claims Pakgen accounts reflect profit figures. According to the reports, the profit, after taxation of Pakgen Power Limited, increased to Rs1.225 billion in the half-year period ending on June 30, 2012 as compared to Rs1.107 billion earned in the corresponding period in 2011. The company’s per share earning increased to Rs3.29 in the period under review against Rs2.98 in the same period in the previous year.
According to the financial results sent to Karachi Stock Exchange, the company’s revenue increased to Rs13.998 billion in the first half of 2012 against Rs13.420 billion in the same period in 2011 while cost of sales increased to Rs12.278 billion against Rs11.928 billion.
Instead of explaining more regarding the allegations and his position, Asif said he has been victimised. “It is a rerun of an old story like the rerun of my 2006 budget speech... Just caught in the cross fire of ratings war, Facts presented to u,” Asif wrote in his tweet.