ISLAMABAD – The Energy Conservation Fund (ECF), managed by the National Energy Efficiency and Conservation Authority (NEECA), is facing serious allegations of providing false, incomplete, and misleading information to the Pakistan Information Commission (PIC).
The controversy began after a citizen, Arshad Hussain, filed an appeal under Section 17 of the Right of Access to Information Act, 2017, alleging that ECF had failed to provide accurate data. The Pakistan Information Commission subsequently launched an inquiry, and the findings have revealed multiple instances of discrepancies and potential mismanagement.
The inquiry report presented to the Commission highlights that the ECF provided contradictory statements on multiple occasions. For instance, regarding expenses for a Bangkok trip in August 2022 arranged for lab technicians, the ECF initially claimed that no cash withdrawals were made. However, it later admitted that funds were indeed used for ministry officials’ travel expenses, including business-class tickets and other costs.
Similarly, conflicting statements were made regarding the engagement of the IT firm “I Orbit.” While the ECF initially denied hiring the firm, a subsequent acknowledgment confirmed payments had been made to it from the ECF bank account.
The report also highlighted incomplete information regarding vehicle allocation and a road accident inquiry, as well as discrepancies in the qualifications of the ECF Company Secretary, which were not in line with SECP rules.
Sources have revealed that significant sums were withdrawn from ECF accounts for trips unrelated to its mandate. Managing Director Dr. Sardar Mohazzam and former Secretary Ghulam Mohammad Memon reportedly used ECF funds for a Bangkok trip and a Sharm El-Sheikh trip with a stopover for Umrah. The payments, amounting to millions of rupees, were withdrawn via cheques signed by MD Mohazzam and ECF Company Secretary Rehan Adeel.
Appellant Arshad Hussain pointed out that such practices violate Financial Management Rules, which limit cash withdrawals to Rs. 10,000. He also alleged that ECF funds, largely contributed by donors in foreign exchange, were being squandered without proper audits or oversight.
The PIC inquiry further revealed that the budget for the fiscal year 2023-24 remained unapproved, meaning all expenses during that period were unauthorized. Moreover, the Memorandum and Articles of Association designate the Secretary Power as the ECF Chairman, yet it appears that major financial decisions have been made without his involvement.
Despite repeated attempts, Managing Director NEECA, Dr. Sardar Mohazzam, could not be reached for comments.
The Pakistan Information Commission has directed NEECA to appear before it on December 12, 2024, to respond to the findings of the inquiry. The case raises serious concerns about governance, transparency, and the proper use of funds meant for energy efficiency and conservation.
