ISLAMABAD At a time when the country is facing severe electricity crisis, the massive corrupt practices, unearthed in the affairs of Multan Electricity Power Company Limited (MEPCO), have allegedly resulted in the losses worth Rs3,300.505 million (Rs3.30 billion) to the national exchequer. According to the documents available with TheNation, the Company sustained the huge net losses during the Financial Year (FY) 2008-09. Consequently, the profitability ratios remained negative and the company could not manage to improve its performance. Moreover, the electrical equipment worth Rs13.268 million was also stolen from 69 places of MEPCO. Surprisingly, the departmental and legal action, in majority of the cases, was not initiated to fix the responsibility of the loss. Furthermore, Purchase Order dated 12-12-2006 was issued to M/S Akhtar Enterprises for the supply of 21,000 Disc Insulators valuing Rs 13.741 million and its delivery was to be completed within 150 days from the date of issuance of purchase order. Despite lapse of about 2 years and 10 months, neither the supplier delivered the material nor his performance bond valuing Rs 1.374 million was forfeited as required under the clause-15-A (I) despite the fact that Chief Executive Officer (CEO) MEPCO accorded approval for its cancellation with forfeiture of performance bond. According to the conditions of schedule of Tariff 'E, MEPCO was required to supply power after obtaining security equal to the anticipated supply and other miscellaneous charges for the period of temporary connections which is a guarantee against loss. But in MEPCO, temporary connections were sanctioned without obtaining sufficient security to cover the risk. The consumers used energy and left the sites without paying the energy charges of Rs2.796 million, and ultimately the Company had nothing to compensate the loss of Rs2.796 million. Similarly, as per purchase order, The material damaged became defective during warranty period is to be substituted with new ones at the cost and expense of the supplier. But in MEPCO, the electrical equipment comprising transformers and capacitors worth Rs 38.900 million became defective during warranty period and were sent to manufacturers during the year 2008-09 for replacement by the management. Despite lapse of a period of one to two years, the replacement of faulty transformers and meters was not received which resulted in blockage of Rs 38.900 million also needs to be resolved. However, it has been learnt that an amount of Rs 155.316 million was earned, as bank interest on funds received from the Government on account of development schemes during 2007-08 & 2008-09 was not remitted to the Government exchequer. Moreover, in 66KV Transmission Line (Okara-Qadirabad Section) from location 102 to 288 and 132 KV transmission line (Sahiwal old-Arifwala) were redundant since long but its material worth Rs 11.303 million was not removed for disposal. The material needs to be disposed off in the light of disposal procedures (Clause-1.4.2 (a) of WAPDA) to avoid loss on account of were and tear and theft also needs to be resolved. In addition, violation of abridged condition-6 of supply (in case on non-removal/ non-regularisation of unauthorised extended load, the supply of the consumer shall be disconnected) was detected as one hundred six industrial connections were running beyond the sanctioned limits. The field formations neither regularised the unauthorised extension nor disconnected the energy connections. Resultantly, amount of Rs 60.165 million on account of capital cost, rehabilitation charges and security remained un-recovered from the industrial consumers. Furthermore, during 2008-09, the percentage of energy losses of twelve H.T from industrial feeders were in excess of the permissible limit of 3 percent which entitled loss of 5.507 million units costing Rs 30.289 million at average rate of Rs 5.50 per unit also requires to be investigated to fix responsibility. Besides this, in contravention of clauses of schedule of tariff, authority decided that the billing of street light connections of Punjab Government/ Agencies would be done on scarp tube-wells tariff (code 46) w.e.f 01-12-2001. This decision was circulated vide Secretary WAPDA via letter No 2111-2133 (GMCS/tariff/T/7 (vol-x). dated 17-06-2002 for implementation. The decision could not become the part of relevant tariff-G in the schedule of tariff revised subsequently. As such the decision is not held lawful, so, its application from July 2008 to June 2009 resulted in short assessment of Rs 65.797 million in MEPCO. Again, a new 6.3 MVA Power Transformer worth Rs 13.162 million was installed and commissioned on July 7, 2008 at 66 KV Grid Station Jalalpur Pirwala which was damaged on August 16, 2008 i-e after about 40 days of its installation and replaced by 5 MVA Power Transformer on August 25, 2008 which requires the inquiry to fix the responsibility for loss of Rs 13.162 million also needs to be expedited.