16 SOEs falling under PD’s control: FD expresses dismay over non-provision of annual reports

ISLAMABAD: The Finance Division has reportedly expressed its dismay over non-provision of annual reports of 16 State Owned Entities (SOEs) falling under administrative control of the Power Division for FY20 despite several reminders.

In a letter to Secretary Power Division, Directorate General of Central Monitoring Unit (CMU) of Finance Division stated that a notification of April 30, 2021 contained approval of reorganization of Economic Reforms Unit (ERU) and intimated the establishment of Central Monitoring Unit (CMU) in the Finance Division with the following objectives: (i) to maintain electronic database of the financial and operational performance including information pertaining to corporate intent, business plan and management policy of SOES; (ii) to analyse the financial, commercial and operational performance of SOEs and to submit recommendations to federal government on such matters; and (iii) to issue and publish periodic, biannual and annual reports on the performance of SOEs.

Finance Division had sought information about the following SOEs: (i) Peshawar Electric Supply Company Limited, Peshawar;(ii) Islamabad Electric Supply Company Limited; (iii) Sukkur Electric Supply Company; (iv) Genco-II, Central Power Generation Company Limited, Thermal Power Station, Guddu; (v) Genco-IV; Lakhra Power Generation Company Limited, Jamshoro; (vi) National Power Construction Corporation (Private) Limited, Lahore; (vii) National Transmission and Despatch Company, Lahore; (viii) Kot Addu Power Company Limited, Muzaffargarh; (ix) Nespak and Partners LLC, Muscat, Oman; (x) Mohammad Hisham Aitah-Nespak, Riyadh, Saudi Arabia; (xi) Nespak Limited, Doha, Qatar; (xii) Wapda Employees Housing Foundation (Wapda-EHF), Lahore; (xiii) Nandipur Thermal Power Generation Company Limited, Muzaffargarh; (xiv) Neelum Jhelum Hydropower Company; (xv) Pakistan Environmental Protection Agency Islamabad; and (xvi) Genco Holding Company Limited.

In this context and in continuation of Finance Division’s earlier correspondence, Finance Division once again reminded that the requisite information along with annual report (including audited accounts) of SOEs for the year 2019-20 under administrative control of Power Division are still awaited and causing delay in compilation and publication of mandatory reports.

According to Finance Division, these reports are compiled by CMU under instruction of Federal Cabinet and delayed/incomplete information will cause hindrance to build upon the Government’s on-going reform agenda for better management and governance of SOEs.

The Finance Division maintained that in view of the list of SOEs aforementioned under administrative control of Power Division the requisite information is either not received or received but is incomplete.

The Finance Division has requested the Power Division to advise the management of respective SOEs to expeditiously furnish the information as early as possible.

Copyright Business Recorder, 2022