Orissa interfering in Cesco functioning: AES

BHUBANESWAR, AUG. 19. The U.S. power major, AES, which is insistent on quitting the energy distribution company Cesco in Orissa, has accused the State Government of interfering in its day-to-day functioning.

The latest stand-off between the Government and the AES arose over payment of July salary to some of the employees of Cesco during the past two days on the instruction and out of the money provided by the State Government.

Official sources said here today that a letter had been received by the State Government from the managing director of Cesco, Mr. Roberto Podesta, on Friday seeking clarification on the nature of the money given to the company out of which the employees were paid salary.

The Cesco managing director, in his letter, alleged that a few employees of the company were called by the Government and given drafts and cheques with instructions to disburse salary for July.

This amounts to interference in the day to day management of the company, the letter said.

The employees, who were not paid their salary by the Cesco management had, meanwhile, resorted to agitational methods. The joint action committee of the workers, employees and engineers of Cesco have also served a notice threatening to go on strike from September 5 in support of their seven-point charter of demands which included payment of salary and other dues, takeover of the power distribution business by the State-owned Grid Corporation of Orissa Ltd (Gridco) and a probe against alleged financial irregularities committed by the Cesco management.

Despite an order from Mr. Podesta not to pay salary to the employees some of the drawing and disbursing officers of Cesco had disbursed salary.

The letter pointed out that the State Government could not use World Bank loan received for energy sector reforms and electricity dues of various Government departments towards payment of salary to the employees.

It also sought to know whether the money given to Cesco was a subsidy by the Government.

As per the escrow agreement between Cesco and Gridco, any receivable of the company would go to the escrow account opened in favour of Gridco, the letter said adding the company would not be held responsible for violation of any such agreement by the Government's action.

Mr. Podesta, in a separate office order yesterday, had asked all superintending engineers, executive engineers, team leaders and other drawing and disbursing officers of Cesco not to utilise the amount given by state government until it was made clear as to whether it was a grant from the Government.

The office order said there were reports that the Government in collusion with some Cesco employees had given money in form of drafts and cheques to some of the company officials with instruction to pay salary of the employees.

``We are not sure whether this is a subsidy provided by the government or the money from world bank (which cannot be used for paying the salaries) or the government has paid the electricity dues of its various departments (in which case this has to go to the escrow account), the order said.

It directed the officials not to use this money for any purpose till further written instruction was issued.

Pointing out that it would be ascertained whether the money was provided as subsidy by the Government, it said this money would not be acceptable to Cesco in any other form to pay salaries.

The chairman-cum-managing director of Gridco, Mr. Priyabrata Patnaik, who had a discussion with Mr. Podesta yesterday, has expressed his displeasure over the state of affairs in Cesco.

Mr. Patnaik, who is also the chairman of Cesco, said out of four functional directors of aes in the distribution company, three were not there. Even the remaining director (Podesta) mostly remained out of headquarters.

While accusing Cesco of sabotaging the distribution company and flouting the licence agreement, mr. Patnaik said they were trying to pressure the Government into allowing them to quit Cesco.

The company had stopped billing against consumers in important divisions this month, he said.

- PTI

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