Chak Shehzad Power Scandal

[Khalids]

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.

Documents reveal power scandal in Chak Shahzad palaces

 

[FaisalAyaz]

every GOVERNMENT is F****N corrupted

 

[zubair723]

CHAK SHEHZAD was & is still legally POULTRY & VEGETABLE farming scheme. The ISLAMABAD city plan designated CHAK SHEHZAD as a place from where poultry, dairy or vegetable produce can go to ISLAMABAD people. It was never meant to be an ELITE RETIREMENT PLAN.
And most hilarious is the fact that if you see the sight plan for each farmhouse there. For example Living quarters are maked as TRACTOR SHEDS & POULTRY sheds and approved by CDA. Even MUSH's FARMHOUSE sight plan showed similar things.

 

[Khalids]

Originaly Qouted by Zubair723
Even MUSH's FARMHOUSE sight plan showed similar things.

And so many people think, rather believe, that Mushattaf has purchased this precious property just by earning royalty from his biography.

 

[Murshad]

And so many people think, rather believe, that Mushattaf has purchased this precious property just by earning royalty from his biography.

 

[niaz]

This is deliberate attempt by the media and politicians to malign Musharraf.

Pray tell me, how did Sharif family manage to become on the biggest industrialists in Pakistan from one foundry in the span of less than 10 years? It is ironic that people who made billions in graft or had billions of loans written off (such as NS) are now calling a subsidy of Rs 50,000 per month as ‘Scandal!’ FATA residents get it free! And people don’t think that a retired head of state deserves electricity on cheap rates.

No mater what does any one think of him, Musharraf was President of Pakistan. In all countries of the world, heads of the state (Presidents) enjoy special privileges even after they have retired. This honor is not to the person but to the ‘Office’. Musharraf may have usurped the power, but he was nevertheless President of Pakistan for 8 years.

 

[AgNoStiC MuSliM]

And so many people think, rather believe, that Mushattaf has purchased this precious property just by earning royalty from his biography.

And what evidence do you have that the proceeds from his book sales, the fees for his lectures, and whatever legal benefits he gets as a former COAS and President are not more than enough to cover his assets?

Lets put things into perspective here, as Niaz sahib pointed out.

There is no major corruption accusation against Musharraf, in fact no one has been able to dig up any significant accusation during all of his years in power, so people like Ansar Abbassi are reduce to maligning him over the fact that his residence at Chak Shezad is charged a subsidized 'farm rate'.

If this is the worst Musharraf did in terms of corruption, then please, give all our politicians and bureaucrats 'farm rate electricity', maybe then we can save the billions they usurp every year through other corrupt means.

 

[Patriot]

Also lets not forget that COAS gets 3% from every defence deal (This was done by the so called Islamic General Zia).Whether its wrong or right it does not matter but he did get 3% on every Defence Deal.

 

[qsaark]

Issue No 47, June 22-28, 2003
By Maryam Hussain

ISLAMABAD: General Pervez Musharraf paid no wealth tax for five years on his extensive lands and properties, although he publicly announced in November 1999 that he had done so, a Pakistan Government Income Tax Department document obtained by SA Tribune reveals.

And finally when he did pay wealth tax in 1999-2000 on his assets worth much more than Rs 30-40 million in the market (or over half a million US dollars), he coughed up only Rs 710 or $12.

The copy of the document has signatures of concerned officials which have been erased by SA Tribune to protect them from reprisals.

Only recently when Musharraf sold his 2 squares of land in Bahawalpur, he received millions. This amount should be reflected in his wealth declarations now but conveniently in the last Budget, wealth tax has been abolished.

The total Income Tax deducted at the source in five years from 1994-1999 was Rs 115,524 (US$ 1,992) on a total declared income of Rs 1.24 million ($ 21,430).

The document shows General Pervez Musharraf declared an income of Rs 146,629 in 1994-95 but the CBR assessed it as Rs 151,189 and taxed him Rs 16,261, which was deducted from his salary as is a routine.

In 1995-96 his declared and assessed income was the same Rs 197,358 and the assessed/ paid tax was Rs 24,472.

Similarly in the next two years (96-97 and 97-98) his declared/assessed income remained unchanged at Rs 205, 967 and Rs 213,417. He paid Rs 24, 684 and Rs 31,927 as Income tax in these two years.

Suddenly in the next year when he became Chief of the Army Staff something different happened to his tax assessment. He declared an income of Rs 222,046 but it was assessed at Rs 226,846. Surprisingly the tax he paid was only Rs 18,180 or Rs 13,747 less than the previous year.

The document shows that he declared an income of Rs 252,670 for the next full year of his tenure as Army Chief but it was not assessed till then. This story of his Income Tax may be explained or justified in some ways but the Wealth Tax story is the real one. It is here that the "real picture" of General Pervez Musharraf emerges as an honest and upright man.

Before his declarations of how much "wealth" he had are analyzed, the official declaration of his assets, made shortly after he took over in the October 1999 coup, has to be kept in view. The official news agency Associated Press of Pakistan (APP) released this report (In Box) on November 2, 1999:

According to the given list, except the parent's house in Islamabad and daughter's house in Karachi all other property belongs to General Musharraf himself.

This includes 2000 square yard of land in Defence Society Karachi, over 1200 sq. yards plot in Morgah Rawalpindi, 900 sq. yards plot in Peshawar, 2 squares in Bahawalpur (sold now) , 600 sq. yds in Eastridge and 1200 sq yards in Gwadur. The document of his wealth tax return shows the wealth (which includes the lands) declared by General Musharraf for the year 1998-99 (which ends June 30, 1999) was valued at less than one million rupees, or Rs 947,000 to be exact.

Thus according to this document, Musharraf's Karachi Rawalpindi, Lahore, Peshawar, Bahawalpur and Gwadur lands all put together are worth less than Rs 1 million or US Dollars 17,241 ($1=Rs58).

But according to any person with an ordinary knowledge and intelligence, his Karachi plot is worth over Rs 20 million, his Rawalpindi piece of land values at least Rs 5 million, his Peshawar plot could easily fetch Rs 2-3 million. The market value of all other lands put together, is well over Rs 30 million. Probably much more as these estimates are very conservative.

His house in Rawalpindi would be worth another at least Rs 10 million if not more. Thus his real wealth, other than cash or securities or overseas accounts is more than Rs 40 million, but he has declared it to be less than Rs 1 million.

On top of this huge under-declaration General Musharraf declared in November 1999 that he had paid all his taxes, including Wealth tax till June 30, 1999.

The document reveals that for the year 1998-99 (which ends June 30, 1999) no Wealth Tax was paid as according to his declaration the wealth was "BTL" or Below Tax Limits.

Musharraf declared his wealth to be Rs 777,000 in 1994-95 and 1995-96, Rs 597,000 in 1996-97, Rs 975,000 in 1997-98, Rs 947,000 in 1998-99 and Rs 1,129,000 in 1999-2000. In that year he paid a wealth tax of Rs 710 or US $ 12.24. The document shows the CBR had not assessed the wealth by then.

The following story was run by APP on Nov 2, 1999:

Musharraf Declares All Property Owned by Family

RAWALPINDI, Nov 2 (APP): Chief Executive General Pervez Musharraf has declared all property owned by his whole family. According to an ISPR press release, following statement has been issued by General Pervez Musharraf with regard to his family property:

1."I would like to declare all property owned by my whole family. My family consists of my parents, wife, my son and daughter. Both my son and daughter are married. The property owned by all of us is as under:

a. Property for which installments are being paid:

(1) Under construction House in Army Housing Scheme Pt-II, Karachi.
(2) 2000 Sq. Yards in DHA, Karachi.
(3) 2xKanals in Morgah Housing Scheme, Rawalpindi.
(4) 1 and half Kanal in AWT (Army Welfare Trust) Housing Scheme, Peshawar.
(5) 8xMarlas in LCCHS, Lahore.
(6) 2xSquare agriculture land at Bahawalpur.

b. Parents' house in F-7/3, Islamabad.
c. My daughter's house in DHA (Defence), Karachi.
d. 1xKanal plot in Eastridge Scheme (09).
e. 2xKanals in Sangar Housing Scheme, Gwadar.

2. I have paid all taxes (income, wealth and agriculture) till the financial year ending 30th June, 1999."

Source: Gen. Musharraf paid only $12 as Wealth Tax in Six Years

Forget about what he earned after he became the President (book or lectures or 3% commission whatever), how on earth he made all that property during his Military service? How much Army pays you? Whatever it pays you, can you make so much property just on the salary? I am not posting this stuff in an attempt to change your mind, but only inviting you to think for God's sake.

Note that the author of this report was never challenged in the court for slander.

 

[Murshad]

RAWALPINDI, Nov 2 (APP): Chief Executive General Pervez Musharraf has declared all property owned by his whole family. According to an ISPR press release, following statement has been issued by General Pervez Musharraf with regard to his family property:

1."I would like to declare all property owned by my whole family. My family consists of my parents, wife, my son and daughter. Both my son and daughter are married. The property owned by all of us is as under:

a. Property for which installments are being paid:

(1) Under construction House in Army Housing Scheme Pt-II, Karachi.
(2) 2000 Sq. Yards in DHA, Karachi.
(3) 2xKanals in Morgah Housing Scheme, Rawalpindi.
(4) 1 and half Kanal in AWT (Army Welfare Trust) Housing Scheme, Peshawar.
(5) 8xMarlas in LCCHS, Lahore.
(6) 2xSquare agriculture land at Bahawalpur.

b. Parents' house in F-7/3, Islamabad.
c. My daughter's house in DHA (Defence), Karachi.
d. 1xKanal plot in Eastridge Scheme (09).
e. 2xKanals in Sangar Housing Scheme, Gwadar.

2. I have paid all taxes (income, wealth and agriculture) till the financial year ending 30th June, 1999."

Source: Gen. Musharraf paid only $12 as Wealth Tax in Six Years

Forget about what he earned after he became the President (book or lectures or 3% commission whatever), how on earth he made all that property during his Military service? How much Army pays you? Whatever it pays you, can you make so much property just on the salary? I am not posting this stuff in an attempt to change your mind, but only inviting you to think for God's sake.

Oh no this all propaganda, he is Mr. Clean of Pakistan. He is poor guy and making his living by growing potatoes and tomatoes and selling those in Sunday markets of London.
Also he travels from city to city to deliver lectures. In those lecture people enlighten themselves with his analytical analysis and literary English

 

[Khalids]

Musharraf's blind fans will not believe in any report against him. He was a saint, he will remain a saint.

I am surprised when members here try to compare him with people more corrupt than him (NS, Zardari) but forget that if they are corrupt why 'Musharraf the Saint' didn't do any thing against them? When he was the sole ruler of Pakistan for eight years.

 

[Murshad]

This is deliberate attempt by the media and politicians to malign Musharraf.

Pray tell me, how did Sharif family manage to become on the biggest industrialists in Pakistan from one foundry in the span of less than 10 years? It is ironic that people who made billions in graft or had billions of loans written off (such as NS) are now calling a subsidy of Rs 50,000 per month as ‘Scandal!’ FATA residents get it free! And people don’t think that a retired head of state deserves electricity on cheap rates.

No mater what does any one think of him, Musharraf was President of Pakistan. In all countries of the world, heads of the state (Presidents) enjoy special privileges even after they have retired. This honor is not to the person but to the ‘Office’. Musharraf may have usurped the power, but he was nevertheless President of Pakistan for 8 years.

That’s very strange. If some politician is corrupt so you can justify the corruption of military dictator. Now considering all were corrupt and he is not , calculate all his special privileges and compare what he has.

 

[niaz]

Musharraf's blind fans will not believe in any report against him. He was a saint, he will remain a saint.

I am surprised when members here try to compare him with people more corrupt than him (NS, Zardari) but forget that if they are corrupt why 'Musharraf the Saint' didn't do any thing against them? When he was the sole ruler of Pakistan for eight years.

No, I don’t believe that two wrongs make it right. Many in the media have received plots as rewards for supporting NS & PP regime. I only said that media and corrupt politicians were being hypocritical and the article in question was for the sole purpose of character assassination.

Most of the plots and land Musharraf in Bahawalpur received were as reward for his army services. This is norm in Pakistan and you would find all senior services chiefs having grants of land mostly in Bahawalpur. Every commissioned officer gets residential plots in the Defense Housing societies at dirt cheap rates. This is clearly unfair but it is the norm n Pakistan.

Tax avoidance is legal in any country. One would find very rich people using legal loop holes to avoid tax. Hundreds of Income Advisors and Chartered accountants the world over, earn their keep this way. People contribute to charities because the donations are tax deductible.

Even a modest man such as me has a Chartered Accountant in UK, who prepares my Income Tax return and always manages to get a refund from Tax authorities more than his fees. Therefore giving a big list showing how little Income Tax Mushy paid is nothing but vindictive. I am sure the returns were filed by a firm of Chartered Accountants.

My point remains that Musharraf was head of state of Pakistan for 8 years. One cannot compare President of Pakistan with ordinary folks. I therefore find sarcasm the in the post of Hon Murshad disturbing. Hon Sir, would you rather see an ex President of Pakistan on his knees! This is how much you respect post of the President of Pakistan!

For your info it is not uncommon for an ex Head of state to be paid in excess of $100K for one lecture. Also Musharraf’s book was on the best seller list for a very long time. Mushy probably grossed at least a couple of million from the sale of the book alone. Very few people challenge the media in court. Tabloid press the world over, especially News of the World in the UK bases their entire sales strategy on gossip. IMO it is very naïve to assume that what ever dirt a vindictive journalists prints is true.

It is human nature to kick the man when he is down and so if vilification by biased media journalists makes some Hon Members jump with joy, bully for them.

 

[Khalids]

With due respect Riaz, would you please justify the NRO thing? The people we are facing today, as you see them, are due to NRO and it was Musharraf who, just to save his honorable presidency, dry cleaned all the corruption done by the politicians. How can we call these politicians corrupt? They have been given clean chit by the president of Pakistan. I would request then, the politicians may not be called corrupt, because there is no proof of their corruption either. And it is also a norm, for sixty odd years, that each and every ruler should make a big fortune using his/her power.

Sorry for being sarcastic.

I wonder, how can we minimize corruption if we refer every wrong doing to the norms. Should we follow the norms or ideals?

 

[Rafael]

This is deliberate attempt by the media and politicians to malign Musharraf.

Pray tell me, how did Sharif family manage to become on the biggest industrialists in Pakistan from one foundry in the span of less than 10 years? It is ironic that people who made billions in graft or had billions of loans written off (such as NS) are now calling a subsidy of Rs 50,000 per month as ‘Scandal!’ FATA residents get it free! And people don’t think that a retired head of state deserves electricity on cheap rates.

No mater what does any one think of him, Musharraf was President of Pakistan. In all countries of the world, heads of the state (Presidents) enjoy special privileges even after they have retired. This honor is not to the person but to the ‘Office’. Musharraf may have usurped the power, but he was nevertheless President of Pakistan for 8 years.

What goes around, comes around. He treated an elected (twice) prime minister like a POW and forced him to live in exile (according to some reports even tried to hang him, had there not been intervention by Suadi Govt). Now what does he expect for himself? and why do his fans want respect for him when he himself didnt respect an elected head of the state?


And secondly, Its not about Rs.50,000, Its about his moral obligations. He has got millions and yet he wants the poor govt to pay for his electricty bills.. and then people call him a leader!