Karachi: Karachi Electric Supply Company has strongly and categorically rejected the one-sided, baseless and mala fide report published in a section of the media based on a study attributed to a so called think tank, SDPI, which appeared to be completely ignorant of facts and utterly prejudiced towards KESC.
While completing this study, SDPI did not even consider it worthwhile to seek information from KESC. That isolated approach clearly shows the mala fide intent and it appears as if the report has been prepared with some ulterior motives and hidden agenda.
SDPI, who prepared the subject report for the Ministry of Water and Power, either did not even make an attempt to seek factual data from the ministry or perhaps some of their sources provided them wrong information and facts. Either ways the report seems to be a result of irresponsible and poor professional ethics of the authors.
It is important to note that Ministry of Water and Power, Ministry of Finance and NEPRA are sent regular reports by KESC as per clearly defined reporting guidelines. SDPI must have contacted these bodies while gathering data for the study. It is also important to note that three government nominated directors on KESC’s board are also fully aware of all facts and SPDI could have approached them to gather facts.
SPDI could have gathered loads of factual information on KESC’s accomplishments from KESC’s website and published annual accounts duly audited by KPMG. However, this report clearly reflects that facts have been either twisted or concealed to present a distorted picture of KESC.
It is even more surprising and regrettable that SDPI’s board of governance member, the minster for water and power, could not decipher gross misinterpretation of facts in this erroneous report.
It is important to mention here that KESC, under its present management, has injected around USD 1 billion in shape of equity and debt. This includes USD 300 million of fresh equity that is part of the total USD 361 million investments, agreed and committed by the KESC management.
It was only due to the credibility and professionalism of the management that IFC, ADB, OeKB, and local and foreign banks have shown confidence in KESC and provided funding for many completed and on-going projects. SPDI’s novice researchers could not get these easily verifiable facts because their report was to serve some other purpose.
It was due to this huge and unprecedented investment that KESC was able to add fresh generation capacity of 750 Megawatts in a short span of time, overhaul old plants and transmission lines, significantly enhance the distribution capacity and considerably improve its technical and service capability.
Just to remind the ignorant SDPI, 220MW plant at Korangi was inaugurated by none other than the Prime Minister of Pakistan, Syed Yousuf Raza Gillani. The flagship gas-fired 560 MW power plant at Bin Qasim is ready with open cycle and lying idle due to gas non-availability, however, SPDI very conveniently ignore all these facts because the objective of their report was to twist facts.
SPDI, the think tank, did not even know that the consumer tariff subsidy is a pass through item that KESC passes on to its consumers on behalf of the government. His is important to note here that KESC, after privatization, has not received a single rupee from the government to subsidize its operations. The ignorant think tank is also not aware of the power purchase agreement that exists between KESC and NTDC.
These deliberate contradictions of the SDPI report speak volumes about its credence and accuracy. SDPI own credibility and competence has become questionable after issuing this extremely malicious and mala fide report. It is indeed astonishing that SPDI had the audacity to publish this report with fabricated stories.
KESC said that unfortunately, this report is nothing but an unsuccessful attempt to defame and willfully malign the private power utility. The biased and unfounded report has also exposed the poor standards of research capabilities and business ethics of SPDI.
The Government having a stake in the KESC and having representation on the board of directors had all the facts at its hands, yet this false report had been published on behalf of the Ministry which is quite unreasonable and malicious.
KESC has demanded that SDPI must immediately withdraw this derogatory and false report. KESC reserves the right to take necessary action within its legal rights to safeguard its reputation and protect its public image. KESC has also demanded Syed Naveed Qamar, Minister of Water and Power to take a serious note of this intentional attempt to defame KESC and initiate remedial action.
For more information, contact:
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641