Islamabad-Raising questions to Mohammad Ali Committee report on power sector, the Power division has recommended forensic audit to objectively assess findings of the report, it is learnt reliably here.

In response Mohammad Ali Committee Report’s options to deals with IPPs and their additional profitability, the power division has recommended two options to the Cabinet Committee on Energy for pursual, official source told The Nation.

Cabinet Committee on Energy (CCE) had requested the Power Division to provide input on the report and present the way forward to the CCE in the near future.

The Power Division has examined the report with focus on the sections discussing IPPs Profitability and the section dealing with Circular Debt.

The findings of the report can be broadly defined under two headings: a) Misrepresentation by IPPs to NEPRA b) Systemic errors in tariff determinations and tariff component frequency by NEPRA

The report also deals with individual IPPs and their additional profitability on various counts. The report gives two Options to the Federal Govt.

Which includes option 1; a negotiated settlement is the preferred option which will require engagement of all stakeholders with a view to arrive at an agreement. In option 2 it was proposed that the Federal Government can undertake a forensic audit of all companies with a view to establishing further wrongdoing: which were not identifiable under the scope of this Report.

The power division in its response to the recommendations of the Mohammad Ali Committee report suggested that in case Option-1 is pursued, the committee headed by Minister of Power and the Technical Sub-Committee formulated under SAPM on Co-ordination of Marketing and Development of Mineral Resources may also be mandated to examine the report and take up the same with lPPs if deemed necessary. If Option 2 is considered, it is suggested that any such forensic audit may not be limited to establish further wrong-doings of the lPPs but also to objectively assess findings of this report.

Mohammad Ali Committee had last month submitted its report for the ‘Power Sector Audit, Circular Debt resolution and Future road map’.

It is pertinent to mention here that the Federal Cabinet had already approved to public the findings of the PM enquiry committee report, forensic audit of the IPPs and establishment of the commission to probe the matter. However nothing has been materialised in this regard so far. A powerful lobby in the power sector is creating hurdles in the way of independent commission to probe the matter of additional profitability by the IPPs and wants to make Mohammad Ali report controversial, official source said.