SBP orders seizure of 12 RPP accounts
KARACHI: The State Bank has directed all banks to stop the operation of the accounts of 12 rental power companies and submit information about accounts of eight important people, including former ministers, allegedly involved in corruption and mismanagement in RPP (rental power project) deals, banking sources said on Monday.
In a four-page letter to the banks, the SBP cautioned about the 12 accounts, which according to banking sources meant seizing the accounts.
The instructions issued under the NAB ordinance call for providing necessary information to the bureau investigating the RPP scandal.
The Supreme Court had on March 30 held the RPP contracts non-transparent and ordered their rescission. It asked the National Accountability Bureau to proceed with corruption references against people who were at the helm of affairs between 2006 and 2008 when the contracts were signed to overcome the energy shortfall through RPPs as a stopgap arrangement.
The SBP letter sought information about the accounts of Liaquat Jatoi, Raja Pervez Ashraf, Tariq Hameed, Ashfaq Mohammad, Mohmmad Ismail Qureshi, Salman Siddique and Shahid Rafi. “These people cannot withdraw money from their accounts,” said a bank manager who had received the instructions.
The names of 12 RPPs whose accounts have been seized are: Techno-E Power (Faisalabad), Young Generation (Faisalabad), Techno-E Power (Sialkot), Pakistan Power Resources (Kashmore), Karkay Karodeniz (Turkish ship anchored off Karachi), Gulf Rental (Gujranwala), Reshma Power (Lahore), Walters Power International Naudero-I (Larkana), Walters Power International Naudero-II (Larkana), Alstome Power Rental (Sheikhupura), General Electric Power (Sheikhupura) and Pakistan Power Resources (Multan).
The SC verdict also held the finance ministry, Wapda, Pakistan Electric Power Company and Gencos (generation companies) responsible for causing huge losses to the public exchequer which run into billions of rupees by making seven to 14 per cent down payments to RPPs and purchasing electricity on high rates.
Bankers said they would submit information about the accounts of top officials allegedly involved in the scam on Tuesday, adding that the accounts of 12 RPPs would remain inoperative till further orders of the State Bank.