AIRLINK 76.15 Increased By ▲ 1.75 (2.35%)
BOP 4.86 Decreased By ▼ -0.09 (-1.82%)
CNERGY 4.31 Decreased By ▼ -0.03 (-0.69%)
DFML 46.65 Increased By ▲ 1.92 (4.29%)
DGKC 89.25 Increased By ▲ 1.98 (2.27%)
FCCL 23.48 Increased By ▲ 0.58 (2.53%)
FFBL 33.36 Increased By ▲ 1.71 (5.4%)
FFL 9.35 Decreased By ▼ -0.01 (-0.11%)
GGL 10.10 No Change ▼ 0.00 (0%)
HASCOL 6.66 Decreased By ▼ -0.11 (-1.62%)
HBL 113.77 Increased By ▲ 0.17 (0.15%)
HUBC 143.90 Increased By ▲ 3.75 (2.68%)
HUMNL 11.85 Decreased By ▼ -0.06 (-0.5%)
KEL 4.99 Increased By ▲ 0.12 (2.46%)
KOSM 4.40 No Change ▼ 0.00 (0%)
MLCF 38.50 Increased By ▲ 0.10 (0.26%)
OGDC 133.70 Increased By ▲ 0.90 (0.68%)
PAEL 25.39 Increased By ▲ 0.94 (3.84%)
PIBTL 6.75 Increased By ▲ 0.22 (3.37%)
PPL 120.01 Increased By ▲ 0.37 (0.31%)
PRL 26.16 Increased By ▲ 0.28 (1.08%)
PTC 13.89 Increased By ▲ 0.14 (1.02%)
SEARL 57.50 Increased By ▲ 0.25 (0.44%)
SNGP 66.30 Decreased By ▼ -0.10 (-0.15%)
SSGC 10.10 Decreased By ▼ -0.05 (-0.49%)
TELE 8.10 Increased By ▲ 0.15 (1.89%)
TPLP 10.61 Decreased By ▼ -0.03 (-0.28%)
TRG 62.80 Increased By ▲ 1.14 (1.85%)
UNITY 26.95 Increased By ▲ 0.32 (1.2%)
WTL 1.34 Decreased By ▼ -0.02 (-1.47%)
BR100 7,958 Increased By 122.7 (1.57%)
BR30 25,727 Increased By 396.8 (1.57%)
KSE100 75,878 Increased By 1000.4 (1.34%)
KSE30 24,343 Increased By 355.2 (1.48%)

This is apropos a news item 'KE receivables soar to Rs.158.8 bn' carried by Business Recorder yesterday. "For putting the facts in order for public reading we find it appropriate to share the actual outstanding amounts KE owes to SSGC, 'a Public Sector Gas Utility Company' supplying gas to KE to meet energy needs of Karachi despite the fact that KE is one of the major defaulters of SSGC; the outstanding as of 31 March 2019 is Rs. 92 billion (out of which Rs. 62 billion is Late Payment Surcharge). Out of 2.8 million customers, KE is the only customer in SSGC franchise area where no GSA exists with SSGC except for 10 MMCFD gas despite the fact that SSGC is supplying 180 MMCFD gas to KE.
"Prior to the privatization of KE in 2005, the amount outstanding was Rs. 1 billion only. Main reason for accumulation of the overdue amounts is KE's departure from agreed arrangements / non recognition of LPS unilaterally. KE was recognizing and / or paying LPS till June 2009. The reason behind KE's regular payments effective 2012 (equivalent to current billing) is the restraining orders by the Honorable High Court of Sindh (SHC). It is misstatement of the facts that the matter of outstanding LPS is subjudice rather it is whole amount outstanding is under litigation. Besides above, the Honorable SHC has passed restraining orders against disposal of KE's immovable properties.
"It is pertinent to mention here that KE is not only disputing the legitimate Receivables of SSGC but evading this fact by claiming the right to set off SSGC liabilities against third parties. This is evident from their published financial statements.
"In the larger interest of the people of Karachi, SSGC as a responsible corporate entity has made concerted efforts on all forums to settle the disputes. Cabinet Committee on Energy (CCOE) in April 2018 took cognizance of the facts and decided to engage a third party chartered accountant firm of international repute to reconcile the outstanding dues between the two utilities. Despite the fact that SSGC has sent the duly agreed (in April 2018) / signed Terms of Reference (TOR) for engagement of the CA firm to KE, KE is still avoiding to initiate the exercise.
"It is regretfully stated that KE's efforts not to recognize the outstanding in its Books of Accounts and disputing the payments is an attempt to gain unlawful profits at the cost of national exchequer and misleading the stakeholders. KE's default on payments to SSGC has adversely affected SSGC's ability to discharge its financial obligations towards gas producers having agreements under sovereign guarantee."-PR

Copyright Business Recorder, 2019

Comments

Comments are closed.