KE dispels false claims by former admins

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ISLAMABAD: K-Electric (KE) called out former director Asad Ali Shah through concocted and framed letter to damage KE’s reputation and informed Pakistan Stock Exchange (PSX) that legal action had been taken against Shah for writing the letter.

The disclosure also cited a court petition, a copy of which was received by the publication, which appears to contain a detailed response to each of the alleged material inaccuracies that Shah, son of former CM Sindh, has raised.

According to Shahs, the electricity company was guilty of irregularities and violated certain accounting standards.

However, according to KE, such communication “misrepresents facts and hides key damaging information and appears to be a deliberate and bad faith attempt to damage the company’s reputation in the public eye.”

KE cited a 2017 NEPRA decision on KE’s multi-year tariff which clarified that the incorrect claims of writing off bad debts as debts of the Government of Pakistan have no basis.

According to the utility company, the accountant misrepresented the fact that under the NEPRA decision of 20.03.2017 write-offs on private sales were true costs of the electric utility business and then issued conditions via NEPRA SRO 576(1)/2019.

Under these guidelines, he added, a policy has been devised in which an accounting principle is applied: revenue is recognized when due rather than when received, and receivables are recorded and claimed in the books in accordance with the regulations.

He further stated that the material misstatements made in the company’s financial records deserved to be rejected since shareholders and stakeholders had been made aware of its non-consolidated financial statements and the respective notes attached mentioning that the matter was under deliberation. with NEPRA and had been part of the public hearings regarding electricity. company price.

The petition also attacks an accusation that KE was rampantly recording revenue against all electricity theft, identifying that this was based on a complete misunderstanding and failure to distinguish between recorded hook connections (temporary ).

Sanctioned or registered hook fittings were set for street vendors who did not have permanent work spaces and those who were not registered were thefts and were not recognized as income by the company. electricity, he added.

The lawsuit also claimed Shah’s accusations were misinformed and violated the confidentiality clause that still applied to him. It was also noted that the proper process was not followed to share grievances, especially as Shah was also a member of the SECP board.

KE said the decision to go public with the information despite knowing the rules and regulations was alarming and demonstrates improper behavior that could result in the disqualification of any board’s leadership.

The latest information from the newspaper shows that Asad Ali Shah and legal representatives of K-Electrics are due in court on February 7.

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