The curious case of US consulate in Karachi

Pakistanis subsidize the poor US government!

Shawkat Aziz, a Citibank banker in New York, was imposed on Pakistan as a wonderboy who would take Pakistan out of its economic mess. He was not the only one to be so imposed. Moeen Qureshi, and Shoaib, among others, had preceded him in the list of such wonder-boys.

He was made the Finance Minister, and then the Prime Minister. Here is the first order he issued on becoming PM:

The first order of PM Aziz: serve the US
Concessions to friendly countries is a norm, says former official

by Ansar Abbasi

Saturday, May 23, 2009




ISLAMABAD: The Public Accounts Committee (PAC) on Friday was told about the first order issued by Shaukat Aziz, soon after taking oath as the prime minister of Pakistan in 2005. It was to give 28 acres of KPT land, worth billions of rupees, to the US for construction of its consulate in Karachi for only Rs 1.1 billion on a 99-year lease.

On the personal instructions of Shaukat Aziz, the Americans were given the land at the laughable rate of Rs 15,000 per square yard against the market rate of Rs 222,000, causing a loss of billions to the country.

When the Aziz scam was being unfolded in the PAC in pindrop silence, his two former cabinet ministers -- Hamid Hiraj and Zahid Hamid -- and six PML-Q MNAs, now sitting as members of parliamentary accountability, who had voted him to become the premier, were present.

The PAC was told that the 28 acres were actually given to the Americans before the visit of then US President George Bush, who was set to raise this issue in his bilateral talks with President Musharraf and Prime Minister Shaukat Aziz.

Bush was informed that the land had already been transferred to America on their own terms and a happy Bush walked out of the conference room with a huge smile on his face. It was disclosed that the secretariat of Pakistan Central Cotton Committee (PCCC), which was the backbone of the cotton economy, was asked to vacate its building urgently so that it could be handed over to the US for construction of the consulate. For the last four years, the PCCC is using a rented building and had paid huge rents to private owners.

The story was unfolded by KPT Chairperson Nasreen Haq. The scam surfaced in the PAC meeting when KPT and Agriculture Ministry officials brought their own controversy over the payment of PCCC building handed over to the Americans. The Agriculture Ministry officials were claiming to have been denied Rs600 million as compensation from the amount to be received from the Americans.

Secretary Establishment Ismail Qureshi was summoned to explain how could he as secretary agriculture had shown no resistance to this move and quietly let the PCCC building be handed over to the US without considering its implications for the cotton committee.

Ch Nisar wondered as to how could all this be done so blatantly by the prime minister of Pakistan and most importantly, how the US could do all this. He said now the Americans might know that why the people of Pakistan did not like them.

“It’s simply mind-boggling,” observed a seriously disturbed Nisar after coming to know the scandalous details. He blasted Shaukat Aziz and said he had already fled the country. “Now what should the PAC do, as the honourable Prime Minister Shaukat Aziz had already escaped from the country,” observed Nisar.

Chaudhry Nisar asked the concerned authorities to get the facts verified whether Pakistan was ever given such a huge concession of getting 28 acres of land in Washington, New York or other cities on such concessional rates.

When this correspondent contacted a former official, who was a close associate of Shaukat Aziz, he said only friends of Pakistan were given special treatment during the tenure of the former prime minister. He said the US has always been helping Pakistan in time of need. He said to give concessions to friendly countries is a norm in international relations and unnecessary criticism on this count should be avoided.

The curious case of the US Consulate in Karachi

Musharraf, the clean guy

Everyone, except the army, was corrupt, he said, and set about cleaning the system. Here is a sample of Mr. Clean_Guy's actions:

Documents reveal power scandal in Chak Shahzad palaces
Government found illegally subsidising Musharraf, Shaukat’s electricity bills

Saturday, May 23, 2009
By Ansar Abbasi

ISLAMABAD: Former president Gen (retd) Pervez Musharraf and former prime minister Shaukat Aziz, who have built up multi-million rupee palaces in the name of farmhouses in Chak Shahzad bordering Islamabad, are getting subsidy on their electricity bills and are charged at the cheapest agricultural rates, copies of their bills obtained by The News have revealed.

A selected few amongst the other highly influential and well-connected residents of Chak Shahzad are also paying the cheapest rates with the connivance of the Islamabad Electric Supply Company (Iesco).

While the whole world knows that Musharraf has constructed a modern house on the farm, obtained for breeding poultry and vegetables, the Iesco is still allowing him to enjoy the cheapest of power tariff D-2(1), which is meant for agriculture tube-wells and lift irrigation pumps and is even subsidised by the government from the taxpayers’ money.




Because of Iesco’s generosity, Musharraf was charged, at least, Rs 50,000 less than the ordinary consumer for April 2009. He has been enjoying similar tariff concession for the last few years which, according to the Iesco sources, is illegal and nothing but cheating and fraud.

Sources in the Iesco reveal Musharraf is one of those over a dozen influentials who are misusing the D-2(1) tariff in their respective farmhouses, which are either used for residential purposes or for industrial and commercial purposes.

Such influentials, besides Pervez Musharraf and Shaukat Aziz who fled from the country within weeks after completing his tenure, includes former PML-N senator Saifur Rehman and top parliamentarians and retired defence officers.

The area SDO, Mian Jamil, when approached confirmed to The News that those using the farmhouses for residential purposes were charged at A-1(a) tariff, which is meant for domestic consumers.

He said such residences if using D-2(1) tariff, were involved in illegality and their power connections should be disconnected.Although, an Iesco source insists that this cheating is going on with the connivance of the authority officials, and SDO Jamil, while admitting that he knows that the agriculture tariffs are being used by Musharraf and Shaukat Aziz, said action would be taken against the violators once The News highlighted the issue.

Iesco spokesman Chaman Khan was not immediately available but a senior Iesco officer Executive Engineer Rashid, while talking to The News, said residential meters were installed at the residences of Gen (retd) Pervez Musharraf and Shaukat Aziz.

When told that according to the electricity bill of these two farmhouses (see attached copies) the tariff type is given as D-2(1) which is for agricultural use, he said it was not in his knowledge. When asked whether there was any policy of Iesco to give concession to influential or government persons, Rashid said there was no such policy and he would investigate the issue tomorrow.

In the case of Saifur Rehman, whose Chak Shahzad farmhouse is also being used as Redco’s site office, SDO Jamil said his connection was changed a few months back and given industrial tariff. The Admin officer at Rehman’s site office when contacted did not offer any comment.

However, the electricity bill of Saifur Rehman’s place shows that the D-2(1) tariff is still intact at his residence though it was showing not to have consumed even one unit of electricity since January this year. An Iesco source said at least 24 air conditioner units are fixed in the Redco farmhouse buildings.

The SDO also confirmed that a former ISI chief, who is also residing in the same locality, was provided free-of-cost transformer and poles, etc., following orders of the then-Iesco chief Brigadier Shahbaz.

Normally every farmhouse is supposed to pay for Rs 700,000 to Rs 1,000,000 for transformer, which is mandatory for each connection. However, this retired general is using normal domestic connection.

Iesco sources say Gen (retd) Musharraf’s farmhouse was also provided a free-of-cost transformer and other equipment in 2006, which was of higher cost than the one offered to the former ISI director-general. These sources said some senators, including a former Senate chairman, a retired admiral, and a former brigadier, a business group, etc., are also using the D-2(1) connections.

Gen (retd) Musharraf’s electricity bill for the month of April for which the reading was done on May 2 shows that despite consuming 5,600 units, his current bill was calculated at Rs 25,841 at the flat rate of Rs 4 per unit.

On this amount, which includes a general sales tax of Rs 2,763, Musharraf was given tariff subsidy of Rs 8,010, which reduced the bill to Rs 17,831. This is only possible because of the special connection given to the former general. In case of a normal domestic connection, Musharraf would have been charged a much higher rate according to the tariff for domestic consumers.

If an ordinary domestic consumer consumes 5,600 units per month, he would be charged at the following rates: Up to 100 units @ Rs3.29 unit; from 101-200 units @ Rs4.96 per unit; from 201-400 units @ Rs8.03 per unit and above 700 units @ Rs10 per unit. The total would thus be Rs 73,498. It shows Musharraf had saved more than Rs 50,000 in just one month because of this illegal connection and fraudulent use of concessional tariff.