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Former LESCO Chief Shahid Haider removed from service over misuse of authority, overbilling and financial irregularities

The Tribune International by The Tribune International
9 months ago
in Pakistan
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By Our Correspondent

LAHORE – The Lahore Electric Supply Company (LESCO) has officially removed its former Chief Executive Officer and Operation Director, Shahid Haider, from service following a high-level inquiry report which held him responsible for serious violations, including procedural misconduct, financial mismanagement, and reinstatement of previously dismissed officials without proper justification.

The inquiry, conducted on the directives of the Prime Minister’s Office and communicated via the Ministry of Energy (Power Division), unearthed a series of systemic failures during Mr. Haider’s tenure.

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He was accused of misusing authority by reinstating officers previously dismissed on serious charges of misconduct, despite being the same officer who had earlier rejected their appeals.

This dual role created a conflict of interest, with the inquiry stating that his actions lacked procedural transparency and violated Pakistan WAPDA Employees (Efficiency & Discipline) Rules, 1978.

The inquiry also found that under his leadership, LESCO witnessed unprecedented financial and operational irregularities. The credit adjustment during his tenure peaked at Rs104.552 billion. A staggering 831 million electricity units, worth Rs39 billion, were allegedly overbilled to 345,920 consumers, primarily due to manipulated billing practices, ghost billing, pro-rata adjustments, and artificial inflation of meter readings.

According to NEPRA’s findings, LESCO overbilled 13.76 million consumers in 2023 through extended billing cycles exceeding 30 days.

Moreover, 400,000 consumers received inflated bills due to faulty meters. By mid-2024, electricity theft and operational inefficiencies reportedly led to 16 per cent power losses—significantly contributing to the rising circular debt.

An alarming 43.85 percent drop in the number of protected consumers between May and June 2024 was also recorded, allegedly to shift more households into higher tariff brackets.

This translated into an additional burden of Rs1.24 billion over six months on low-income households.

The Federal Investigation Agency (FIA)’s Anti-Corruption Circle in Lahore also substantiated overbilling claims. FIA confirmed that LESCO had overcharged 345,920 consumers by 831 million excess units

Multiple FIRs were lodged against LESCO officials and commercial assistants for manipulating billing data using fraudulent tactics, including fake CNICs and ghost connections. Recoveries amounting to Rs19 million were made, and 248 FIRs were registered in electricity theft-related cases.

Additionally, the inquiry flagged serious procurement irregularities, especially in the acquisition of 132-KV circuit breakers. The process reportedly lacked transparency and was marred by bid manipulation and favoritism, raising questions about LESCO’s internal controls.

In terms of reinstating dismissed employees, the inquiry concluded that decisions were made in personal capacity, ignoring organizational accountability mechanisms. Cases such as those of Usman Ghani and Sulaiman Samuel highlighted contradictory decisions made by Haider in his capacity as appellate authority and later as CEO, casting doubt on the legitimacy of the reinstatement process.

Following procedural steps, a Letter of Explanation was issued to Haider on May 7, 2025. Despite acknowledging the notice on May 8, he failed to submit a defense reply by the given deadline of May 21.

Subsequently, a Final Show Cause Notice was issued on May 29 and acknowledged by Haider on June 2. His response, dated June 4, was considered insufficient and lacking substantiation.

After careful consideration of the charges, supporting evidence, and Haider’s failure to provide a valid defense, the competent authority exercised its powers under the WAPDA Pension Rules and E\&D Rules to impose the penalty of “Removal from Service.”

The decision was finalized through Office Order No C-B88 HRD/HRMI/Conf dated July 4, 2025.

The order has been communicated to all relevant departments, including the Company Secretary, Chief Financial Officer, and Medical Superintendent of WAPDA Hospital, as well as Shahid Haider himself. LESCO maintains that this step reinforces its commitment to accountability, transparency, and consumer rights.

Shahid Haider was contacted for his version, but no response was received till the filing of this report. The Tribune International is always ready to welcome his side of the story if provided.

Tags: circular debt crisisconsumer rights Pakistanelectricity billing fraudelectricity corruptionelectricity meter tamperingelectricity overbillingenergy sector reformsFIA investigationghost billing Pakistangovernment inquiriesLahoreLESCO billing fraudLESCO CEO removedLESCO scandalMinistry of Energy PakistanNEPRA reportPakistan newspower sector governancepower theft Pakistanprocurement irregularitiesprotected consumers electricitypublic accountabilityPunjabShahid HaiderWAPDA Employees Rules
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