ISLAMABAD - The Supreme Court on Tuesday observed that Rental Power Projects (RPPs) awarded in violation of the rules and in non-transparent manner could be cancelled. Chief Justice Iftikhar Muhammad Chaudhry heading a two-member bench that heard RPPs case said: We have to see whether Pepra rules were followed and there was transparency in award of the RPPs contracts, adding: We will not allow national wealth to go waste. Shahid Hamid, counsel for Walter International, informed the bench that five out of 19 RPPs were assigned without advertisement, which included Naudero I, Naudero II, Karkey-II, Techno E and Abbas Steel. However, the Federal Cabinet approved these projects, he added. The CJP remarked deviation from Pepra rules would not make it legal even if was approved by the Cabinet or Parliament, adding the Cabinet had no authority to approve the unlawful agreements or bypass the rules. He said unsolicited (not advertised) agreements were made in non-transparent manner, adding issuing projects without advertisement was clear violation of procedure. Hamid said though Naudero-I and II were unsolicited, however the federal Cabinet approved it on January 27, 2010. The Chief Justice inquired on whose behalf the unsolicited contract were issued. Shahid Hamid replied it was issued by the Ministry of Water and Power. The counsel for Walter International said though they had incurred huge losses and still not received guarantee amount, besides that the companys owner David Walter, whose business of RPPs was in 14 countries, wanted to stay in Pakistan, adding this shows how much Walter loves Pakistan. Justice Khilji Arif Hussain remarked, Our people dont love this country then how a US businessman could love Pakistan, adding businessmen loved only their money. The Chief Justice stated why Walter opted for unsolicited contract instead of solicited. He said that commission would look at the fact why so much concession was given to some companies. Justice Khilji said it seemed the RPPs contracts to some companies were awarded through backdoor channel. The Chief Justice stated if that way the government had to award the contracts then why not it opened the backdoor for everyone. Shahid Hamid conceded there was non-compliance of some of the Pepra rules in Naudero-I & II. He said Naudero-I, with the total production capacity of 51MW, was though 15 years old but the equipment was zero rated and completely overhauled. At that point Faisal Saleh Hayat stood up from his seat and said Naudero-I machinery is more than 23 years old. The learned counsel said it makes no difference to produce electricity by old or new machinery. The Chief Justice inquired from Shahid Hamid that Naudero-I started trial in July 2011 but broke down in October 2011. Hamid said there was no flaw in the machinery but it broke down due to grid fluctuation of 132KV wire. Faisal Saleh contended that after the closing down of plant, Naudero-I continued to receive payment. Khawaja Tariq Rahim, counsel for Ministry of Water and Power, and Hamid denied that. The court further inquired how without the Commercial Operation Date (COD) the Naudero-I plant was inaugurated. Hamid replied: Its the territory of President of Pakistan therefore they had to produce electricity. The Chief Justice stopping him said: Dont involve the President of the country in small projects. Shahid Hamid conceded that there was non-compliance of some of the Pepra rules. Khawaja Tariq Rahim said after consulting ministrys officials he could inform about the non-compliance of Pepra rules. He said the Supreme Court judgments should be implemented. He said a person against whom the apex court ordered action in the LNG and Capital Development Authority cases was appointed secretary in a ministry headed by Faisal Saleh Hayat. The Chief Justice said the apex court orders are flouted; adding non-implementation of the court judgment would promote anarchy. Faisal said he had been targeted unnecessarily, saying appointing secretary was not his authority. Shahid Hamid concluding his argument said if government wanted, they were ready to participate in rebidding, therefore dont cancel the contract. Hafeez Pirzada, counsel for Reshma Power Plant, would plead his case tomorrow. The hearing was adjourned till today (Wednesday).