Massive financial embezzlement unearthed in IESCO

— IESCO management found involved in irregular payment of Rs 9.25 million to its senior officers as ‘special allowance’ 

— IESCO spokesman defends dual charge, keeps mum on irregular payments  

ISLAMABAD: Top management at the Islamabad Electric Supply Company (IESCO) has been accused of involvement in irregular payments of special allowance worth approximately Rs 9.25 million to its high ranked officers for 40 months in violation of rules and regulations of Water and Power Development Authority (WAPDA).

According to sources, former chief executive officer (CEO) of IESCO, Shahid Iqbal Chaudhary, Qaisar Shah, Chief Auditor (Internal Audit), Raees Haidar, Deputy Finance Manager and Irfan Mehmood, Deputy Manager (Accounts) allegedly pocketed Rs 92,50,000.

However, a team of Director General (Audit) WAPDA has unearthed this massive financial embezzlement and recommended the IESCO management to investigate the matter and recover the excessive payments.

Following the direction, the IESCO management has recovered the amount paid as special allowance to Irfan Mehmood. However, no amount has been by rest of the high ranked officers, said the sources.

The sources said that though IESCO management on 12-02-2020 had recovered Rs 18,90,000 from Irfan Mehmood, Deputy Manager (Accounts), who was granted additional charge of the post of Secretary IESCO from September 2016 to January, 2020 (40 months), the management so far allegedly did not recover the massive amount paid to Shahid Iqbal, Qaisar Shah, and Raees Haidar as special allowance.  

IESCO board had granted the charge of IESCO chief (CEO) to Shahid Iqbal who was working as General Manager (Operation) while board granted the charge of Chief Auditor (Internal Audit) to Qaisar Shah who was working as Deputy Chief Auditor (Internal Audit) and the board also granted additional charge of Finance Manager to Raees Haidar who was working as Deputy Finance Manager in IESCO, the sources added.

It is relevant to note here that according to Director Finance (Regulations) WAPDA dated July 02, 1988, additional charge for vacant identical or higher posts should not exceed three months.

However, it may be extended by another three months with the approval of next higher authority immediately after the expiry of six months of the full additional charge of the particular vacant post, the post shall be treated as having been abolished. Moreover, in open violation of these rules, the said officers were granted the additional charge for four long years.   

As per Public Sector Companies (Corporate Governance) Rules, 2013 (Rule-13 & 14), the board shall appoint a chief financial officer, a company secretary and a chief internal auditor by whatever name called. However, no person shall be appointed as the company secretary of a public sector company unless he is a member of a recognized body of professional accountants; or a member of a recognized body of corporate or chartered secretaries; or person holding a master degree in business administration or commerce or being a law graduate from a university recognized by the higher education commission (HEC) with at least five years relevant experience. Similarly, no person shall be appointed to the positions of the chief financial officer and company secretary unless he is fit and proper for the position.  

Manzoor Hussain Shah Kazmi, Chairman Anti-Corruption Cell, Labour Unity IESCO (CBA Union), in an application to Auditor General of Pakistan (AGP) has requested for a special audit of IESCO for the period 2013 to 30th June 2020.

While talking to Pakistan Today/Profit, Manzoor Hussain Shah Kazmi, Chairman Anti-Corruption Cell, Labour Unity IESCO (CBA Union) said that the level of corruption was so high that the amount (Rs 18,90,000) recovered from Irfan Mehmood, Deputy Manager (Accounts) was not shown in IESCO record and no one in the company knows about the whereabouts of this huge amount.

Similarly, he asserted, no one in IESCO knows whether the amount (Rs1890000x3:Rs 5670000+Rs3580000 : Rs 9250000) which was to be recovered from former IESCO chief Shahid Iqbal Chaudhary, Qaisar Shah, Deputy Chief Auditor General and Raees Haidar, Deputy Finance Manager was recovered or not.

He said this is a case of massive financial embezzlement and there is a need for a special audit of IESCO’s accounts from the AGP.

“We have requested DG Audit WAPDA and the AGP to conduct a special audit of IESCO’s accounts but so far, we have not received any response from any side,” said Manzoor Hussain Shah Kazmi, Chairman Anti-Corruption Cell, Labour Unity IESCO (CBA Union).

When contacted, the spokesman of IESCO said that the IESCO is facing acute shortage of officers and staff and to cover this gap, additional tasks are given to officers in addition to their existing task which is a requirement so that work may not suffer.

He said the company has to pay around PKR 3 lac to fill a position of BPS-19 with a regular officer including all benefits but for additional charge, the company has to pay only Rs 40,000.

“Our Board of Directors are competent authority to accord approval for dual charge for above six months till the availability of regular officers,” said IESCO spokesman, avoiding any comment over IESCO’s reluctance to recover the embazzled amounts from its officers.

Despite repeated efforts to secure the stance of IESCO management on various questions pertaining to non-recovery of special allowance from its high ranked officers and violation of rules for grant of additional charge to officers for more than six months, the spokesman did not bother to answer.