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ISLAMABAD: The National Accountability Bureau (NAB) has formally assumed jurisdiction over the high-profile corruption case involving M/s Sitara Energy (Pvt.) Ltd (SEL), Faisalabad, and officers of FESCO, CPPA and NEPRA, directing the Federal Investigation Agency (FIA) to transfer the entire record of its investigation to the Bureau “with immediate effect.”
According to an official order issued by NAB Chairman Lt. Gen. (R) Nazir Ahmed, dated 3 August 2026 (No. 3-5/COD/NHQ/20/SEL&FESCO), the case was authorized for investigation under a letter dated 5 June 2026 on allegations of corruption and corrupt practices under Section 9 of the National Accountability Ordinance, 1999. The allegations concern the execution of Power Purchase Agreements (PPAs) between FESCO officials and Sitara Energy Limited at “exorbitant rates” and without NEPRA approval, allegedly causing a loss of approximately Rs11.96 billion to the national exchequer.
The order notes that FIR No. 35, dated 18 July 2026, was separately registered at the Police Station FIA, Composite Circle, Faisalabad, on the same matter, and that it too is under investigation. While acknowledging that the FIA inquiry traced the alleged collusion between Sitara Energy Limited, Sitara Chemical Industries Limited and FESCO management back to the sale and purchase of electricity between 2007 and 2015, NAB’s Chairman ruled that under Section 3 of the NAO — which gives the Ordinance overriding effect — and Section 18(d), which vests the responsibility for inquiry into offences under the Ordinance exclusively with NAB, “investigation for same offences by two investigating agencies will amount to multiplicity of proceedings and can invite many challenges like double jeopardy.” He therefore directed that the case be pursued by NAB alone, “in the best interest of justice” and in line with “the legislative intent of the Ordinance.”
The order instructs the FIA to hand over the case record — including the FIR and all ancillary inquiry material — to Mr. Haider Azmat, Assistant Director/Investigation Officer, NAB Lahore, and was copied to the Director General FIA, the Additional Director Staff (NAB Lahore), and the Desk Officer Monitoring, Lahore.
Background: the FIA case NAB is now taking over
The matter originates from an FIA anti-corruption inquiry that culminated in FIR No. 35/2026, registered against senior officials of Sitara Group of Industries, Sitara Energy Limited, Sitara Chemical Industries Limited, and several former FESCO chief executives. Reporting on the case in July described a wide-ranging probe:
- Investigators allege the accused caused losses of approximately Rs11.96 billion to the national exchequer through irregularities involving electricity generation, supply agreements, and regulatory approvals, with the FIR naming 13 individuals — including six former FESCO chief executives, an additional director general of NEPRA, and several company directors and senior officials.
- The FIR alleges that Sitara Energy sold electricity to FESCO at rates higher than those approved by the Central Power Purchasing Agency (CPPA), while Sitara Chemical Industries Limited purchased electricity from FESCO at rates below the approved levels — resulting in significant financial losses for the government.
- The FIR further states that SEL had been granted its power generation licence in 2002 by NEPRA primarily for self-consumption, with only surplus electricity permitted to be sold to bulk power consumers — a category FESCO was not part of.
- The Director FIA Faisalabad Zone, Saqib Sultan, told a press conference that the case followed the completion of FIA Inquiry Nos. 27/2015 and 11/2017, and that it also alleges the company obtained subsidised gas by presenting itself as a Captive Power Plant despite a different registered status with NEPRA.
In late July, the case drew wider attention when the FIA arrested Sitara Chemical’s owner, Mian Muhammad Idrees, at Lahore’s international airport as he attempted to leave the country, along with former FESCO chief executives Khurshid Alam and Saeed Akhtar. Officials said the men were intercepted while preparing to board a flight to the United States and were handed over to the FIA’s Faisalabad team for further investigation. His name had earlier been placed on the Provisional National Identification List (PNIL), a mechanism used to restrict foreign travel during ongoing investigations.
Company’s response
Sitara Chemical Industries Limited has publicly pushed back on the allegations. In a stock-exchange filing, the company said the case primarily concerns the affairs of a separate entity, that the allegations remain unproven, and that no court or competent authority has issued findings against it or its CEO. It added that its manufacturing and business operations continue without interruption and that it intends to pursue all available legal remedies to protect its rights and interests.
What happens next
With NAB now formally in control of the record, the case moves from FIA’s criminal investigation track to NAB’s accountability process — a shift that has, in past high-profile cases, both consolidated proceedings and drawn criticism over delays and jurisdictional overlap between anti-graft bodies. NAB’s order frames the takeover explicitly as an effort to avoid “double jeopardy” and duplicate proceedings, praising the FIA’s progress so far as “commendable and highly appreciated” even as it asserts exclusive jurisdiction under the Ordinance.
The case remains under investigation, and none of the allegations against the named individuals or companies have been proven in a court of law.
