Key Takeaways
- The Federal Investigation Agency (FIA) has arrested two former CEOs of Faisalabad Electric Supply Company (FESCO).
- Accused of an alleged Rs. 12 billion electricity fraud, the case involves manipulation of electricity purchase and sale arrangements.
- A full-fledged case has been registered against six individuals and four former chief executives.
The Federal Investigation Agency (FIA) has arrested two former CEOs of Faisalabad Electric Supply Company (FESCO), Khurshid Alam and Ahmad Saeed Khan, in a major corruption case involving an alleged Rs. 12 billion electricity fraud. The accused are being held on charges related to criminal breach of trust, cheating, forgery, and conspiracy.
According to the FIA, the former CEOs allegedly colluded between 2007 and 2015 to manipulate electricity purchase and sale arrangements, allowing their companies to secure unlawful financial benefits at the expense of the public treasury. The case has been registered under the Prevention of Corruption Act and multiple provisions of the Pakistan Penal Code.
The FIA alleged that one company sold electricity to FESCO at rates higher than those approved by the Central Power Purchasing Agency (CPPA) while also receiving electricity from FESCO as a bulk power consumer at subsidized rates. Another company obtained subsidized natural gas from Sui Northern Gas Pipelines Limited (SNGPL) by presenting itself as a captive power plant, using misleading documents to represent itself as a small power producer before the National Electric Power Regulatory Authority (NEPRA).
A local court has granted the FIA a five-day physical remand of the arrested suspects for further investigation. The accused have been placed on the Exit Control List (ECL) to prevent them from leaving the country during the investigation.
The case involves not only the two CEOs but also a company director who was taken into custody at Lahore Airport, along with four former chief executives and five directors of industrial companies. A full-fledged case has been registered against these individuals as well.
This development comes amid ongoing efforts by the government to combat corruption in public utilities and ensure transparency in state-owned enterprises. The FIA's actions are seen as a significant step towards addressing systemic issues within Pakistan’s power sector.
