Al-Jomaih Group, holding 9 percent of the shares in Karachi Electric Supply Company, has illegally taken over the company. Al-Jomaih Group refuses to provide details of its shareholders to SECP.
A sizable resident population of Karachi has been deprived of electricity supply. Karachi Electric (KE) has failed to solve the supply problems. Power consumers without subsidy of Rs 200 billion from the government.
They are obliged to buy expensive electricity in this situation. The K-Electric would not be able to generate any amount of electricity despite subsidy payment of Rs 200 billion.
The administration of KE runs under the influence of a few shareholders. Al-Jomaih Group handed over a large part of the management affairs to Abraaj Group in 2009. The Abraaj Group refused to pay up for the management affairs after conceding bankruptcy.
The Group has been controlling the management affairs of K-Electric with 9 percent of the shares. Due to mismanagement and incompetence, the government of Pakistan provides a subsidy of Rs 200 billion annually to the K-Electric.Sage Investment Group holds 36 percent of the KE shares.
The Securities Exchange Commission of Pakistan has sought details of shareholders from the K-Electric. The Group has prevented other shareholders from providing details while refusing to provide details of other shareholdings to the SECP.
The Al-Jomaih group did not provide details of K-Electric’s shareholders to SECP to prevent SECP from acquiring these details. That reveals the bitter fact that the Al-Jomaih Group enjoys total control of the Karachi Electric.
