Anwar Brohi’s name struck off from rental power case after plea bargain with NAB – Pakistan

The name of former CEO of Lakhra Power Generation Company Limited (LPGCL) Anwar Brohi was excluded from the list of suspects in the case of the Energy Rental Project (RPP) after he agreed to reach an agreement with the National Office of Responsibility , the case investigation officer told a liability court on Monday.

The guilty plea, which will make him return to the north of 8.5 million rupees, was approved by NAB chief Javed Iqbal, the investigative officer told the court.

Brohi was arrested by NAB in connection with the case in 2014, but he was soon granted bail. The case also involves the PPP leader and former Prime Minister Raja Pervez Ashraf, as well as other prominent personalities. The defendants are believed to have illegally awarded a contract to Karkey Karadeniz Elektrik Uretim (KKEU), a Turkish company, for the installation of a rental energy project in Karachi.

KKEU was one of the 12 electricity rental companies to which the PPP government granted contracts in 2008-09 to "solve" the energy crisis.

A ship was brought to the port of Karachi in April 2011 to provide electricity to the national grid under the government's RPP policy at that time to overcome the energy crisis. However, it failed to generate 231 megawatts, as required by the agreement, even though the company had been paid $ 9 million in advance as capacity charges.

The plant produced only 30-55MW of electricity and that also at a cost of Rs41 per unit, which was a serious breach of the contract, according to the indictment. This led to a 50 percent increase in the claim for reimbursement by the government, from $ 80 million to $ 120 million.

According to NAB, after submitting the reference against Karkey, the Turkish company requested a plea agreement and said it was ready to pay $ 18 million to NAB and promised not to submit to international arbitration.

However, some politicians moved the Supreme Court and the then president of the court, Iftikhar Mohammad Chaudhry, closed the agreement and insisted on recovering the 120 million dollars of the Turkish firm.

As a result, Karkey moved the International Center for Investment Dispute Settlement (ICSID) in 2013, seeking compensation of $ 800 million for losses suffered by its vessels in terms of damage or depreciation for not being able to leave the port of Karachi for almost 16 months . The Turkish company then won the case in 2017.