Report By Shahzad Raza

The story began after the Pakistan People's Party-led coalition formed a government and gave lucrative ministries to party stalwarts and comrades. Raja Pervaiz Ashraf was made the minister of Water and Power.

In a bid to end load shedding, he pursued the previous regime's policy to buy electricity from Rental Power Plants (RPPs). Despite criticism right from the inception of the project, he was resolute and determined.

Now, the National Accountability Bureau (NAB) will determine whether he and other officials acted in line with the proverb "honesty is the best policy", or got swayed by "all that glitters".

A recent Supreme Court judgment invalidated the RPP project identifying black spots in the process. In its 90-page verdict, the apex court directed the NAB to undertake an investigation. Assets of the suspects were frozen and they were put on the Exist Control List.

The two former water and power ministers Liaquat Jatoi and Raja Pervaiz Ashraf made categorical denials of any wrongdoings, pleading they were innocent. Given the financial magnitude of the RPP project, both may face tough questions.

Minutes after the Supreme Court verdict, Ashraf offered himself for independent investigation. He made cautious criticism on the verdict saying it might repel the investors in an already fragile energy sector.

Some lawyers share the same apprehension. "It is expected from the RPPs to invoke the arbitration clause of their contracts. In that case, international arbitrators will examine and decide the matter," says corporate lawyer Nadir Altaf, who is associated with Rizvi, Isa, Afridi & Angell.

But talking about arbitration is putting the horse before the cart. It is likely but hypothetical. NAB is investigating whether there is evidence of an anomaly or corruption in the project.

Altaf says the apex court has struck at the core of the RPP project, pointing out inherent flaws in the policy rather than just corruption at operational or executional levels.

He defends the Supreme Court's intervention in the matter, saying billions of dollars of public money were at stake. He also criticizes the government for not stopping the entire program after two initial projects had failed. NAB would go into minute details to unearth the wrongdoings, if there were any. However, after the apex court's hard-hitting verdict, the investigating authorities are likely to look at the people involved in the RPP project with suspicion, and would feel a certain pressure to prove their guilt.

The court ruled that principles of transparency - under Article 9 and 24 of the constitution - were violated. If a violation is proved, Raja Pervaiz Ashraf is politically doomed.

Proponents of the project had argued that the RPPs were the only option to quickly add the much-needed electricity to the national grid. The move was necessary to temporarily revive the industry suffering because of power shortage until long-term arrangements could be made.

Dr Ashfaq Hassan, a leading economist, disagrees.

"First of all, we must reject this notion that there is a power shortage in Pakistan," he says. "Government documents show that we have the capacity of producing 21,000 megawatts of electricity."

Producing at 70 percent of the total capacity is satisfactory according to international standards. "By that standard we can produce 16,000 megawatts of electricity. And if we are not reaching this mark, the fault lies with us. It is a classic case of mismanagement, wrong policies and wrongdoings."

He says most power plants in Pakistan are fuel guzzlers and working at around 17 percent of their capacity. They need to be producing at at least 35 percent of their capacity to be efficient and feasible. Such plants should be identified and improved, he says.

Accusing the government of incompetence, he says Wapda's finance department is "in a mess" and contributes to the problem of circular debt.

The person who took the matter to Supreme Court was Faisal Saleh Hayat, federal minister for housing and works. When he started grilling the government over RPPs, his party - the PML-Q - was sitting on the opposition benches. Now it is part of the ruling coalition. Despite accepting a cabinet portfolio, Hayat preferred not to withdraw from his stance against Raja Pervaiz Ashraf.

Although insiders say the coalition partners believe President Asif Zardari would ensure Raja Pervaiz Ashraf would stay away from financial or administrative wrongdoings, stories of corruption and nepotism have already tarnished the image of some top PPP leaders.

Friday Times