ISLAMABAD: K-Electric (KE) has sought payment of Rs 137.4 billion regarding pending Tariff Differential Subsidy (TDS) from the federal government.

In a letter to Additional Secretary Incharge Power Division, Asad ur Rehman Gilani, Chief Financial Officer (CFO), Aamir Ghaziani referred to financial audit of KE’s TDS for the period 2004-05 to 2012-13.

He submitted that the last DAC on issues of the financial audit of KE’s TDS for the period 2004-05 to 2012-13 was held on February 26, 2021 and since then there has been no further progress.

According to him, an amount of Rs 10.388 billion pertaining to TDS as on June 30, 2011 has been withheld, pending conclusion of the subject audit.

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He requested Additional Secretary Incharge Power Division that the said amount should be released as the TDS claims for the audit period 2004-05 to 2012-13 has already been verified by the Engineering Advisor, Ministry of Energy (Power Division) including the amount.

He further stated that in addition to the TDS requirement for the year FY 2023-24, within the budgeted TDS for KE, an amount of Rs 127billion has been budgeted for 2023-24 for arrear payments to be made in respect of KE’s outstanding TDS Claims. Accordingly, he requested the Power Division to release the outstanding TDS Claims of KE.

Ghaziani also shared a KE letter written on November 7, 2022 which noted the minutes of the meeting of DAC held on February 26, 2021 about special audit report on the accounts claims of K-Electric for TDS for the period 2004-05 to 2012-13. And highlight that DG Audit was directed in DAC meeting on February 26, 2021, to provide a list of specific records requisitioned from KE viz-a-viz records provided by KE, and specific records subsequently required. However, to date no such list has been received by KE.

Relevant excerpt of the minutes of referred DAC meeting is as follows: “after hearing view point of both sides, in order to resolve the matter, the Chair requested the DG Audit to provide a list of specific records requisitioned from KE vis-à-vis records provided by KE and specific records now required to complete the audit. The list will be provided to the Ministry of Energy (Power Division) which will be communicated to KE management for immediate provision of record as required by Audit to complete the audit assignment.”

KE also enclosed copies of acknowledgement from AGP Office with respect to information submitted against each ToR item in the matter of the audit information. Further, KE highlighted that during DAC meetings held on August 08, 2018 and July 02, 2019 only audit observations were discussed and any issue relating to non-provision of records was not highlighted. Additionally, KE on October 17, 2019 duly submitted the response to the audit observations.

Copyright Business Recorder, 2024

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