The report further laid the entire blame for a rise in costs of about 36 billion rupees on (i) the 'inordinate delay' in approval by the then Law Minister Babar Awan which led to container and demurrage charges. This the report claims were considered a one-off payment and not part of the cost - and claimed that the PML-N government saved the project and thereby the 31.85 billion rupees already spent on the project by the former government, (ii) rupee depreciation, (iii) interest during construction, and (iv) charges for repair of damaged machinery unused due to delays.
The public is awaiting the Ferguson report as the AGP report is considered partisan and for Khawaja Asif to commit that he would fix responsibility on the findings of the Ferguson report must therefore be fully supported. However, critics of the Sharif administration have already expressed their concerns/reservations over Khawaja Asif's ability to fix responsibility for Nandipur closure for two months given the active engagement of the Prime Minister's brother Shahbaz Sharif in project implementation - an engagement that he repeatedly and proudly announced publicly.
Khawaja Asif's acknowledgement that his Ministry removed the Managing Director of the project because of his dispute with the Board and his silence on what justice, other than the loss of this particular job, has been rendered on the man removed, speaks volumes about his ability to take on powerful members of his own party. This view is further strengthened by a number of other cases where there is an evident disconnect between the PML-N administration's claims of transparency and accountability and reality. For example, the Justice Najafi report on the Model Town killings implicating Shahbaz Sharif and Rana Sanaullah remains suppressed and the commercial deal on LNG imports from Qatar remains quite inexplicably shrouded in secrecy.
The way out of governance issues was stipulated by the Supreme Court which directed the setting up of a three-member committee comprising individuals with integrity who would shortlist and select senior staff. Prime Minister Nawaz Sharif did establish such a committee but then began to overrule their selections leading to their voluntary resignations. One can only advise the Prime Minister to set a system in place which outlasts his tenure to ensure that appointments are made on merit. One would also propose to the PML-N to follow the route set in its manifesto namely restructuring must predate any attempt at privatisation and restructuring is an important component of governance.
What remains an issue in the Sharif administration as it did in the Zardari-led government is the insistence by senior members of the party to influence top level appointments in state-owned entities (SOEs). This unfortunately is having major negative implications on governance and the performance of Pakistan International Airlines, Pakistan Steel Mills as well as the Nandipur power project provide ample proof of this contention. PIA has generated an operational profit in recent months; however, the decline in the price of fuel has more to do with this than any improvement in governance; in addition, the airline still owes 1.6 billion rupees as past dues to Pakistan State Oil which undermines claims of improved governance. PSM too is floundering under a management that is unable to meet its own stipulated capacity and with zero output is unable to meet its wage bill.