The Public Accounts Committee (PAC) subcommittee was informed on Monday that the Multan Electric Power Company (MEPCO) purchased electricity worth Rs. 988.7 million from captive power plants without securing prior approval from the National Electric Power Regulatory Authority (NEPRA).

As per an audit briefing, MEPCO entered into a power purchase agreement with a private entity in 2010 to acquire 10.5 MW of electricity. However, the agreement was only reported to NEPRA in 2011, in violation of regulatory procedures. Committee members raised concerns about whether disciplinary action was taken. Officials replied that the Departmental Accounts Committee (DAC) had directed an inquiry.

The Lahore High Court’s Multan Bench later issued a stay order on the recovery process. The PAC had previously marked the matter as sub judice in 2015 and 2017. MEPCO restarted the recovery process in 2017 based on a NEPRA decision, though the case remains in court. The Secretary of Power noted that the most recent hearing was held on May 20, and the next is scheduled for June 18.

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In another audit finding, officials reported that MEPCO suffered a loss of Rs. 461.5 million after purchasing 2,188 transformers made with defective materials. MEPCO’s internal inquiry blamed three local manufacturers. Although the case was forwarded to the National Accountability Bureau (NAB), the investigation was closed when NAB found no evidence of scrap materials being used.