- The amount borrowed from WB exceeds the actual cost of sunburn.
- Solar DC fans distributed by changing import documents.
- Sindh minister says that relevant documents will be given.
Serious issues have arisen with regard to alleged irregularities and transparency in contracts related to Pakistan Peoples Party’s Flagship Project, Sindh SINH SOLAR Energy Project (SSP), The news Reported on Sunday.
The first phase of this project, funded by the World Bank with RS28 billion, aimed to distribute 200,000 sunhouses. A foreign company reported the cost of each sun kit as $ 151, but import documents revealed that the actual price was less than $ 50.
The foreign company also had to import Solar DC fans. Instead of these, however, fans made in Pakistan were distributed by changing import documents and duties and taxes were required based on allegedly false import documents.
Pakinomist News‘Program “Naya Pakistan” Anchorperson Shahzad Iqbal and performer Syed Hassam Ahmed Warsi brought important facts related to the alleged irregularities in SSEP for the first time.
In a reaction to this investigative report during the show, Provincial Minister Syed Nasir Hussain Shah claimed that there are no irregularities in SSP and that the relevant documents would be delivered.
When the question of the low price of the sun unit registered on the commercial invoice given to customs by the company, Shah during Invoiding, Shah replied that if the private company was under the involved, it was made by the private company.
As for the import of fans, he said that if false documents were created to show incorrect imports, the Sindh government would conduct an investigation and bring the case to light.
SSEP was announced by PPP chairman Bilawal Bhutto Zardari during his election campaign and promised to give 300 units free electricity if elected prime minister.
The Sindh government has begun to distribute solar energy systems to thousands of deserving households in Karachi and 30 districts in the province in the past year.
In the first phase of the SINDH government project, it is claimed that loans from WB delivered solar systems to about 200,000 homes. However, significant questions and objections to transparency and delays in this RS28 billion project have been raised.
Following the questions raised in Senate’s standing committee chairman of Senator Saifullah Abro, a study of this case began and further questions of alleged irregularities corresponding to billions of rupees, failure to transparency in contracts and changes in documentary items emerged.
The Sindh government had announced last July that it would provide solar energy systems for low-income households or those using less than 100 units of electricity. The target was set to supply solar systems to 200,000 households within a month.
The provincial government is considering SSEP its flagship initiative. According to this program, Solar Home Systems is provided for households included in Benazir Income Support Program (Bisp), which includes a solar panel, a battery, a DC ventilator, three LED bulbs and a facility for charging mobile phones.
Authorities considered that the total cost of a complete solar energy unit was approx. $ 208 or approx. RS55,000. The Sindh government has received funding of $ 100 million or approx. RS28 billion from WB to this project and claims that the project is monitored by WB itself.
However, questions and objections to the project arise. This, during a meeting of the Senate’s Standing Committee on Financial Affairs, can be raised by Senator Abro, the lack of transparency in the distribution of solar systems and delays in the implementation of the project.
On June 23, the Sindh Energy Department wrote to Project Director Mahfooz Ahmed Qazi and instructed seven officers in SSEP to perform for the investigation committee, but no results have been made from this study yet.
“Naya Pakistan” also contacted Qazi to know his attitude, but he refrained from making comments on a record or giving his attitude because of his government job.
While questions were raised in the Senate Committee on delays in the implementation of the project, the role of NGOs and the distribution under BISP, the question is not just about delays in the project or lack of transparency in the distribution of solar systems.
According to the disclosures and documents presented under “Naya Pakistan”, the case seems to be much more serious. The Sindh government claims that under Phase 1 of this project, 200,000 sunhouses would be distributed to the public with a unit price of $ 151.31.
If $ 56.3 in taxes is included, this amounts to approx. $ 208 or RS55,000 per Unit. A loan has been taken from WB to this project, which will eventually be repaid from the public’s pockets.
Documentation certificates available with “Naya Pakistan” show that the actual price of the solar systems provided by the SINDH government is allegedly much lower than $ 151, suggesting that the amount borrowed from WB exceeds the actual costs of sun cits.
According to the documents obtained by “Naya Pakistan,” a private company Sindh cited a price of $ 112.44 per year. Unit for the sunshine system in the quotation document.
Including taxes and duties, this amounts to $ 151.79, which includes a controller, battery, LED light, LED cable, PV cable, mounting structure and a USB cable for mobile charging.
However, the commercial invoice of the same company available with “Naya Pakistan” shows that the specified price for this sun hero system is much lower than $ 112.
This document indicates that on October 24, 2024, the company imported 20,808 Solar Home System Kits, and their price was not $ 112, but only $ 23.4 per day. Unit, which is about five times lower than the original price.
According to the Bill of Entry Document from the same private company, the foreign company exported 20,808 sets to a local company in Pakistan at a rate of $ 23.4 per year. Unit.
Therefore, the question arises as to why is there such a significant difference between the actual price of a solar kit imported from China and the estimated price? In this regard, “Naya Pakistan” tried to contact the foreign company to know his attitude, but despite repeated attempts, the foreign company did not give any answer.
The Sindh government also claimed to give an imported Solar DC fan with this solar kit. However, the available documents with “Naya Pakistan” show that the fans that were distributed to the public were not imported but rather purchased in Pakistan.
It is alleged that false documents were created to show the import of these fans through which the Sindh government later claimed false duties and taxes.
The documents presented in the program reveal that the import of Solar DC fans is mentioned in column # 42 in the customs. According to this document, the foreign company exported 25,300 fans to its Pakistani agent at a rate of $ 23.5 per year. Unit.
Interestingly, according to the company’s own site, the fans that are distributed are manufactured in Pakistan and exported from Pakistan abroad. This raises the question of how an import document exists when these fans are produced in Pakistan and were not imported from China.
According to our sources, the reason for this discrepancy is that the document is false as there are two entry bills for the same machine number.
The machine number for the imported fans is registered as KPPI-HC-32166. However, there is another entry bill for the same machine number that shows the import of lithium batteries. Allegedly, all this was done to demand customs and taxes from the government, based on the false import documents for DC fans.
In addition, a document from Customs’ Clearing Agency was brought forward in the program, which mentions the requirement for customs duties and excise duty to import Solar DC fans, though these Solar DC fans were never imported.
Based on this document, the company claimed customs and taxes. Alleged, according to the false entry bill, a requirement of approx. RS127 million based on $ 18 in tasks and taxes for 25,300 fans.
In addition, the Sindh government signed a contract with the foreign company for $ 151 per year. Unit without tasks and taxes, according to the company’s bid. Based on this contract, a loan was taken from WB.
However, according to the documents exported the company that won the contract, Solar Home Systems to only $ 23.4 per. Unit. Similarly, the import of fans was shown to $ 23.5.
This means that the total value of the entire Solar Kit was less than $ 50, yet contracted the Sindh government with the foreign company at a cost of $ 151, which means that the total costs of 200,000 sunscreen without duties and taxes were approximately RS8.5 billion.
If we also include the almost RS1 billion given to NGOs for distribution of sunhouses, the total cost of the project without duties and taxes is RS9.5 billion.
Therefore, the question now arises: Why is there such a significant difference between the price that the Sindh government says, and $ 100 per year. Device difference in the import documents?
Based on this difference, under Phase 1, a difference of $ 100 for 200,000 sun units for RS5.6 billion is made up. Similarly, if false duties are required for 200,000 fans, it is over RS1 billion.
In total, a discrepancy of RS6.5 billion arises in the project. This raises the question of why there is such a big difference between the estimated costs of the project and the actual price.
In the second phase of this project, even more irregularities and questions regarding a lack of transparency in the contract are emerging.
In this regard, Transparency International Pakistan (TIP) has written another letter to SINDH Chief Minister Syed Murad Ali Shah, which highlights serious violations of Sindh Public Procurement rules in the award of the SSEP contract and complaints about the purchase of sun units at inflated prices.
The letter states that complaints received by TIP claims that Sindh -Cabinet approved a contract directly with a subsidiary of a government company that constitutes a violation of Sindh Public Procurement rules.
However, after the contract was awarded, the government company unilaterally changed the agreement to include another subsidiary, despite the fact that the contract decided that it could not be transferred in whole or in part to anyone else.
According to the letter, it has also been revealed that the price of a purchased unit was inflated at $ 135, while its market price is $ 84 per day. Unit. This extra cost has resulted in a loss of approx. 21 million dollars or RS6 billion. The letter recommends that CM investigate the case.
