The US embassy has expressed ignorance about kickbacks in the USAID's Power Distribution Project in Multan Electric Power Company (Mepco) and Peshawar Electric Supply Company (Pesco). In reply to written questions about the 'suspicious' role of IRG's contractors sent by Business Recorder, a spokesperson for the US embassy, Christopher Snipes, said that all bids were properly evaluated by IRG technical evaluation committees and recommendations were forwarded to the USAID for final approval.
"USAID is unaware of kickbacks involved in any award. To mitigate the risk of corruption, USAID's contracts contain a standard business ethics clause and USAID provides recurring training to contractors on ethics and fraud," he added. The Spokesperson added that Business Recorder's claim about installation checks is inaccurate and PDP's engineering team oversaw the installation work. A separate IRG quality assurance team was assigned to verify the number of installations and quality of the work. In addition to IRG's internal checks, USAID conducted at least three independent inspections. All equipment procured by IRG meets WAPDA/DISCO and international standards, Snipes averred.
In reply to another question regarding the award of a sub contract for meter installation in Pesco area, the spokesperson pointed out that the USAID contractors may further subcontract their work. USAID does not have a direct relationship with the subcontractors of USAID contractors. The principal local contractor holds primary responsibility for the complete installation, testing, and commissioning of meters, he stated.
"There has been no compromise in the quality of any meter installation. PDP introduced several new technologies in Pakistan, and DISCO staff was trained to fully understand these technologies. During the transition period to new technology, old and new meters were working side by side to ensure readings were accurately assigned to the correct customers," he continued.
Authentic sources told Business Recorder that the Office of Inspector General, USAID Mission through US embassy was recently sent a presentation titled "misuse of funds of $218 million under USAID Power Distribution Program." The presentation has reportedly been shared with David Hale, the US ambassador to Pakistan, Nadeem Habib, COR US Energy Office, Eewa Sejner, Director Programs IRG Washington, COR IRG, Islamabad, Ethics Office- IRG Washington, CEO, IRG Office Washington, National Accountability Bureau(NAB) and Federal Board of Revenue (FBR).