The recent brouhaha to denationalise KESC sounds largely unwarranted. Why do we need to turn back on policies - in such fiscally constrained times - and try to achieve something which the government couldnt do for all those years in the first place?
Lets take a quick inventory of issues faced by the utility firm. First, there is just sheer power shortage. Second, plenty of electricity is wasted due to transmission and distribution losses. Third, there are many illegal connections, called kundas, which sometimes provide electricity to entire (shanty) towns scattered across the city. Fourth, there is dishonesty such as bribery, laid back attitude etc - at the firms grass root level, as recently reported by the media and as known by the general public for long.
And now the scrutiny. It is no hidden secret that power shortage is not a KESC specific phenomenon; and the government does not have any capacity to supply power to the firm overnight. Second, neither can transmission and distribution losses be patched up so promptly. Such losses arise due to lack of adequate infrastructure, which is typically laid out and upgraded gradually over a course of time. Even if the government repurchases KESC, it can neither resolve this problem on an immediate basis - despite all its pure intentions - nor does it have the fiscal space to do so.
Third, these kundas are something so pervasive and so much politically charged at times that even the army generals couldnt sever it when they ran the ailing firm before its privatisation in late 2005. Fourth, so far as corruption at KESCs lower staff level goes, there isnt much the government can do, when its own house appears to be in the same mess. In fact, the government acknowledges corruption in its offices, as conceded by the Minister of State, Hina Rabbani Khar in a local business TV show about two weeks back.
Hence, heavy government machinery with all its bureaucratic elements trying to revive KESC isnt what is required. And the fate of our nationalisation policy pursued in the 70s confirms that. Plus, had the government been prudent enough, KESCs ownership would not have changed hands twice and we would not have lost valuable time.
So while there may be no need to patronise KESCs new management, the least one can do, is be patient and keep a close watch on how it carries out its plans. The governments role should revolve around setting mutually-agreed upon but stringent quality benchmarks and continuously evaluate whether those targets are met or not.
Failure to meet the targets may be penalised appropriately - but surely re-nationalization is not an option. KESC does not need another story of ghost workers and other ancillary vices that typically accompany politically-led public sector entities, does it? Unless of course, there is some other motivation: politics.
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