Reshma RPP's case: CJP requested to take notice of defiance of its order

Transparency International Pakistan (TIP) has requested the Chief Justice of Pakistan to take notice of the defiance of court's orders by Reshma Rental Power Plant. Although the RPP deposited Rs 4.5 billion, but the "total shortfall which should have been deposited in the Court by Friday, November 18, 2011 by the company is Rs 1,713 billion," TIP Adviser Adil Gilani said in a letter sent to the Chief Justice on November 19.
He congratulated the Supreme Court for taking notice of procurement irregularities in RPP Awards, and on Thursday November 17, 2011 ordering private Reshma Rental Power Plant to pay up by Friday the sum of Rs 4.5 billion that it had earlier received as mobilisation advance. The court had also said that since the company had received the payment in dollars, it must cough up the cash in the same currency, and with mark-up, or 'get ready to face legal action'.
TIP referred to the report submitted by the Director of Finance, Pakistan Electric Power Company (Pepco), in the Supreme Court on Friday, that Reshma plant had deposited Rs 4.576 billion, but without any mark-up. An advance mobilisation fund of $55.27 million was paid to the plant on October 3, 2009, after securing a bank loan at 16 percent mark-up, but the project is yet to achieve the commercial operation date (COD). Adil Gilani has requested the court to take notice of the following financial impacts of the non-compliance of the Court Orders by the RPP contractors:
The Company was paid in October 2009 $55.27 which it should have returned. However, the Pak rupee equivalent at today's exchange rate of Rs 87.15 comes to Rs 4.817 billion. The shortfall is Rs 390 million. The government of Pakistan has paid 16 percent/annum interest on Rs 4.817 billion. The refund, therefore, should have been Rs 5.157 billion, (Rs 1.34 billion 2 years simple interest.)
On simple calculation, the total shortfall which should have been deposited in the Court on Friday by the Company comes to Rs 1,713 billion. Transparency International Pakistan requested the court "to kindly take notice of company's defiance of the court orders".