KARACHI: The Sindh High Court on Wednesday reserved judgment on a petition challenging the privatization of Karachi Electric Supply Corporation (KESC), now called K-Electric (KE). A two-judge bench reserved its judgment after the completion of arguments from both sides. The date of judgment’s pronouncement will be fixed late.
The privatization of the power utility was challenged by KESC Labour Union, submitting that the privatization commission (PC) kept it in the dark about the exact terms and conditions regarding the sale of KESC to the reconstituted Hasan Associates in 2005.
The petitioner’s counsel, Advocate Salahuddin, contended that the privatization process was carried out by the respondents without prior approval of the Council of Common Interest (CCI) and without its supervision and control in violation of Article 154 of the Constitution. The counsel submitted that the bidding process was collusive and non-transparent and unless the petition was granted, it would defeat public interest. “Thus, 20,000 employees of KESC will be seriously prejudiced and suffer hardship”, he added.
He said that privatization of the power utility had caused colossal loss to the national exchequer as the properties worth over Rs70 billion were sold out for only Rs15 billion.
Advocate Salahuddin submitted that the local company was being run by a foreign concern which was imposing the tariff of its own choice. He also alleged that excessive bills were being issued to consumers. The counsel said that the privatization of the K-Electric was illegal.
He prayed to the court to decide on the fairness and rationality of the PC’s action in the privatisation process of KESC, now K-E, and declare it illegal.
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