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Express Tribune
09-07-2025
- Business
- Express Tribune
Senators alarmed over NHA's handling of Indus Highway project
A parliamentary body on Tuesday expressed serious concerns over the awarding of a major highway construction contract to a blacklisted firm, raising alarms over transparency, procedural lapses and funding delays in the Rajanpur-Dera Ismail Khan section of the Indus Highway project. The Senate Standing Committee on Communications, which met at Parliament House with its chairman Senator Pervaiz Rasheed, grilled officials of the National Highway Authority (NHA) over the project's stagnant progress, insufficient allocation in the current PSDP and the decision to award the contract despite the contractor's alleged blacklisting. According to NHA officials, five bypasses are planned between Rajanpur and Dera Ghazi Khan. While funding for some bypasses has already been approved, others were still pending. They said that Rs6.7 billion has been released for the project so far, but an additional Rs11 billion is needed. Partial funds for the Jampur segment have already been transferred to the national exchequer. The NHA officials informed the committee that a total of 11 bypasses will be constructed under this project and that the estimated cost for land acquisition alone stands at Rs11 billion. NHA chairman further clarified that payments for the construction of seven bypasses have been fully made, though there remains a funding shortfall of Rs5 billion for land acquisition. He also expressed concern that the necessary funds for this project have not been allocated in the current fiscal year's PSDP. Senator Zameer Hussain raised concerns about the construction company being awarded the contract. He claimed that the company was blacklisted and questioned how the NHA board approved such a contract. "If this company has been awarded the contract, it would be a major blunder," Senator Saifullah Abro pointed out. "As the chairman of the Senate Standing Committee on Economic Affairs Division, I can confirm that we held a meeting on this very issue." Senator Abro criticised the NHA's handling of the matter, accusing the authority of releasing a press statement contradicting the Senate's media release. "NHA's press release amounts to disrespecting the entire Senate," he said. He demanded that a subcommittee be formed to investigate the issue. Senator Kamil Ali Agha supported the demand, saying, "This is a serious stain on NHA's reputation and the loss must be addressed." He added that if the NHA manages to justify its position, he would be willing to resign. Senator Zameer also asserted that the parliament's honour had been insulted and called for formal action. Senator Abro noted that the Senate's media wing had made no mention of a blacklisted company. Still, NHA had reacted strongly. The committee also reviewed toll fee collections from 2023 to 2025.
Business Recorder
01-07-2025
- Business
- Business Recorder
NHA tendering & contracting processes: Senate panel exposes alarming malfeasance
ISLAMABAD: The Senate Standing Committee on Economic Affairs uncovered alarming instances of fraud, corruption and irregularities worth billions of rupees in the National Highways Authority's tendering and contracting processes. The committee's meeting, chaired by Saifullah Abro was also attended by senators including Haji Hidayatullah Khan, Syed Waqar Mehdi, Falak Naz, Kamran Murtaza, and Kamil Ali Agha. Special Secretary Economic Affairs Division (EAD), Additional Secretary Ministry of Energy (Power Division), Mohammed Sherhyar Sultan (Chairman, NHA), MD, PPRA and other officials attended the meeting. Abro exposed that a Chinese company, terminated by NHA, was disqualified in 2023 after being awarded a contract of Rs6.86 billion for the Lodhran-Multan project in 2021, where only eight per cent work was completed while around Rs2 billion was already paid. Shockingly, this same company has now been illegally awarded a fresh contract worth Rs172 billion for CAREC Tranche-III in 2024. 'How is the company that has been terminated and disqualified by the NHA being given a tender again? This is a case of ghost tendering,' Senator Abro remarked. Highlighting deliberate attempts to hide facts, Senator Abro revealed, 'Why are the bidding documents not being provided to the Committee despite repeated instructions issued by the Committee? A former NHA member is trying to hide the documents. If this case is sent to the FIA, the entire NHA team will be involved.' Senator Kamran Murtaza demanded, 'A detailed report on the judicial proceedings must be submitted to the committee,' pointing out how the advisor for the terminated and disqualified company was appointed as arbitrator and ruled against the NHA. Senator Abro emphasised, 'NHA officials should not defend wrongdoings. The Federal Minister for Economic Affairs has the responsibility to take action against corruption worth billions of rupees.' Senator Kamil Ali Agha strongly condemned the managed and manipulated processes, stating, 'Contractors are given benefits out of greed. This is a national crime because it increases the sense of deprivation in small provinces. This tendering process is completely managed.' The company named as the bidder in the Lodhran-Multan project was not the actual bidder; instead, a local company participated as a joint venture partner in the project. When terminated by NHA, the company stated in its submitted petition to the Islamabad High Court that it was the local company's responsibility to complete the project, as it was only charging three per cent of the project value. The committee observed that NHA should have taken a firm stance in Court, pointing out that company initially declared itself as the lead partner of the project but later claimed to charge only three per cent. The committee was informed that a commission of 20% - 22% is being paid on World Bank and Asian Development Bank (ADB) projects across most provinces in Pakistan; however, the Asian Development Bank is still unable to enforce its own conditions. Senator Abro stressed, 'The Economic Affairs Division and NHA must take immediate steps to ensure transparency in the utilisation of loans and the completion of projects.' Further irregularities came to light when the MD, Public Procurement Regulatory Authority (PPRA) revealed that one complaint had been received against the successful bidder of the project. A hearing on the matter was held on 12th June 2025. The PPRA had requested NHA to provide the relevant documents; however, the documents have not yet been submitted by NHA. Furthermore, it was observed that major irregularities highlighted in the complaint were acknowledged; however, NHA officials failed to satisfy the Committee and provide the required documents. The lowest bidder was also present during the hearing. The procedure was found to be in violation of PPRA rules. Based on the hearing and available evidence, the complainant's petition was accepted, and the tender process for CAREC Tranche-III was suspended due to missing documents, while the NHA did not extend the required cooperation. 'Send this decision to the Economic Affairs Division. EAD may write a letter to the Federal Board of Revenue (FBR) to obtain details of the Arbitrator, as well as the bank account statements of the qualified company for the CAREC Tranche-III project,' Senator Abro directed. The tender documents still not shared, the Chairman warned, 'The NHA will not provide us with the documents; they will come to us on their own.' He also questioned why the Lodhran-Multan project's cost ballooned from Rs6.86 billion to Rs15 billion after retendering. The committee directed to immediately suspend the tendering process and submit complete bid evaluation report/bidding document within two days to the committee. The committee resolved that Economic Affairs Division must strictly review these massive irregularities and ensure accountability. 'The Federal Minister for Economic Affairs must play his role. Although he has never attended these meetings, it is his duty to curb corruption. The EAD should stop funding non-performing departments for future projects. A clause holding them accountable must be included in future contracts,' Senator Abro asserted. The committee recommended EAD write to the Asian Development Bank (ADB), highlighting the serious lapse committed by the NHA. The company in question, a non-performer in the Rs6.8 billion Lodhran-Multan project, disqualified in the CAREC Tranche-II ADB project, Zhob-Yarik project and failing to provide litigation information - having even been described as a ghost company in its own petition submitted to the Islamabad High Court - was suddenly qualified for CAREC Tranche-III, a project worth Rs172 billion. Furthermore, the committee also recommended that Power Division write a letter to the company for the verification of the Power of Attorney (PoA) submitted for tender ADB-401B-2022 Lot-IIA. Regarding the inquiry made by the former Caretaker Federal Minister for Energy (Power Division) concerning tender ADB-401B-2022 Lot-IIA, the committee was informed that the report was unsigned and not available with the Power Division. The committee pointed out that former caretaker minister was the head of the Inquiry Committee and questioned how he had concluded his comments during the Senate Standing Committee on Power meeting held in February 2024. The Committee recommended EAD take action against the officials of the Power Division for providing incorrect information to the Committee in its previous meeting. Regarding the recovery status of Rs1.282 billion from the company qualified for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), the chairman committee stated that NTDC Board was not authorised to conduct its own inquiry. The committee recommended EAD to write a letter to the relevant department (Power Division), and that Power Division refer the matter to the Public Accounts Committee (PAC) for recovery of the amount (Rs1.282 billion) from the qualified firm for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), in line with the committee's earlier recommendation. A copy of the letter should also be shared with the committee. It was further revealed that despite funding, the N-45 Section-l (Chakdara-Timergara) project remains incomplete for several years. Senator Haji Hidayatullah Khan expressed outrage: 'The NHA has demolished all roads in Chitral but started work from the tail, leaving the head and torso of the lion!' He also questioned the excessive toll taxes and fines on national highways. The Senate Standing Committee on Economic Affairs demanded urgent action to stop such illegalities, ensure transparency in international loans, and protect national resources from misuse. Copyright Business Recorder, 2025
Express Tribune
28-06-2025
- Politics
- Express Tribune
Low-cost housing projects hit dead end
Even after the passage of 12 years, residential projects introduced by the Sindh government for providing decent housing to the low-income segments of Karachi remain hanging in uncertainty. Amidst complex bureaucratic hurdles and shifting priorities of the government, many deserving families can imagine comfortable living in their dreams only. In the financial year 2008-09, a low-cost housing project was initiated under the management of the Shaheed Benazir Bhutto Housing Cell. As part of this project, low-cost houses were to be constructed in different districts of the province. According to officials of the housing cell, 18,700 low-cost houses have been constructed in three phases, Under this scheme, 6,000 houses were to be constructed in Karachi, but not a single house has been built there to date. After this, during the same tenure of the Pakistan People's Party (PPP), the Sindh government had announced another project under which 50,000 poor families of the province, including Karachi, were to be given free plots totaling 120 square yards in area size. However, so far, only 27,000 plots have been given to the deserving families across Sindh. The project was also supposed to accommodate families of PPP workers martyred during the bomb blast in October 2007. The Shaheed Benazir Bhutto Town was built at the Hawks Bay area of Karachi, where 18,000 plots of 120 square yards were given to impoverished families including the relatives of the martyred PPP workers and local journalists. Due to lack of necessary development and other problems, most of the allottees could not build their houses and were forced to sell their plots at cheap prices due to poverty. Many others however, remained deprived of their promised land, due to the outdated system of government offices. A PPP worker from Lyari, on the condition of anonymity, revealed that when the project had started, they had made several rounds of the respective offices, but each time they were told that the paperwork had not yet started. Similarly, another PPP worker from Lyari, shared that even though he was given a plot under the scheme, he did not have money to construct a house. "I could not afford to build a house therefore, I sold my plot for Rs100,000 a few years ago," said the allottee. When contacted by the Express Tribune, Irfan Abro, in-charge of the project, confirmed that very few people had constructed houses in the Shaheed Benazir Town Karachi. "Hence, we have informed all plot holders through an advertisement this month that they should submit the layout plan of their plots as soon as possible. Allotments will be cancelled for those who do not submit their layout plans and fail to start construction work," said Abro. Anis Qadir Mangi, Director of the Shaheed Benazir Bhutto Housing Cell, told The Express Tribune that 6,000 houses were to be constructed in Karachi under the project. "I have submitted a proposal to the Sindh Finance Department in this regard," said Mangi.
Business Recorder
30-05-2025
- Business
- Business Recorder
Rs500m loss inflicted on national exchequer? Senate body raises questions over role of Nespak, NTDC
ISLAMABAD: The Senate Standing Committee on Economic Affairs raised serious questions over the role of National Engineering Services Pakistan (Pvt) Limited (Nespak) and National Transmission and Dispatch Company (NTDC) in awarding the bid to the third lowest, causing Rs500 million loss to the national exchequer. The committee met with Saifullah Abro in the chair here on Thursday for further discussion on the recommendation made after detailed deliberations in the committee's previous meetings concerning the EAD and its related departments (NTDC projects including 765Kv Dasu-Islamabad Transmission Line project (LoT-I-LoT-IV) upto date progress, expenditure and briefing through MD, Nespak on ADB 401B-2022 LoT-II A(ACSR Bunting Conductor) regarding inquiries reports. The committee's chairman remarked that it was a matter of great embarrassment that Nespak, a national institution responsible for technical evaluations, failed to prevent such a decision. It was Nespak's responsibility to ensure proper verification, because Nespak's role is to scrutinise the document, he stated. Senator Abro highlighted that the 'contract is not awarded to the deserving by which the Rs500 million of the country could have saved.' He noted that 'the company to which the project was awarded Newage, Lahore, lacked the relevant experience, while expressing serious concern that this type of negligence cannot be ignored.' Senator Abro stated that the matter will be pursued through the relevant forums like, the Federal Investigation Agency (FIA), the Public Accounts Committee (PAC), and the National Accountability Bureau (NAB) to ensure that the public funds are recovered. He also recommended that strict action should also be taken against the involved officers. Referring to legal inconsistencies, he questioned 'if Public Procurement Regulatory Authority (PPRA) laws are not applicable in the case of domestic preference, and how can a letter from the Asian Development Bank (ADB) be considered valid?' He recalled that during the previous meeting, three written letters were presented by the caretaker minister, which further raised serious questions regarding the transparency of the process. When the committee sought further details, it was informed that all relevant data from the Engineering Development Board (EDB) had been destroyed in a fire, and only one verified letter was presented before the committee. Senator Kamal Ali Agha inquired whether an inquiry was conducted following the fire incident. The concerned department stated that no inquiry had been carried out. The chairman committee, recommended that a formal inquiry be conducted into the fire incident and that strict action be taken against those found responsible, including officers from the Power Division. During the committee meeting, a discussion was held regarding where the department conducts testing, which institutions are responsible, and where laboratories are located in Pakistan. The department informed the committee that type testing is conducted internationally and not within Pakistan. It was further stated that the type test for the current year, 2024, was conducted in Hungary. The chairman inquired about who the witness to the test? The department told that the witness was not verified. They also stated that, according to a 2023 policy, having a witness was not a mandatory requirement by the consultant. However, after detailed discussion, it was revealed that no such policy had been formulated. The chairman committee strongly remarked that no valid testing had been conducted and an attempt was made to mislead the committee, which amounted to fraud. The chairman asked whether any recovery of the misused funds had been made, to which the department responded that a letter had been written to NTDC regarding the matter. The chairman committee recommended that all the involved companies be blacklisted, the misappropriated funds be recovered, and that the officers involved be terminated from service. Furthermore, he recommended that the recovered amount should be deducted from the salaries of the responsible officers. The committee also inquired about the report and minutes of the 282nd Board meeting, as well as the letter issued by the NTDC Board. It was noted that while the minutes of the committee meeting were dated 24th December 2024, the Board was required to submit its report within 15 days. However, the BOD has submitted after six months. Meanwhile, the committee remarked that the Board itself is violating its own letter and treating the amount of Rs1.28 billion as insignificant. The chairman recommended that strict action be taken against the Board and that the amount be recovered within two weeks. Copyright Business Recorder, 2025
Express Tribune
30-05-2025
- Business
- Express Tribune
Rs600m corruption unearthed in Dasu project
The Senate Standing Committee on Economic Affairs on Thursday detected mega corruption in Dasu Hydropower Transmission Line project, calling for a thorough investigation by the relevant authorities, including the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB). The committee which met with its chairman Senator Saifullah Abro in the chair, was informed that that the project contract was awarded on the basis of a letter from the Engineering Development Board (EDB) in 2015, while the National Engineering Services Pakistan (Nespak) presented wrong figures. The chair expressed anger over the alleged corruption in the project, amounted to Rs600 million. "How could the project be given to a company based on a letter," he raised the question. "It is the responsibility of all institutions to investigate it." The committee was informed that Nespak presented wrong figures during the scrutiny of the bidder, and the Nespak managing director confessed to the wrong figures. The committee directed action against the wrong figures presented by Nespak officials. "The negligence of the Power Division [in this issue] should be investigated. This matter should be investigated by NAB and FIA," Abro told the committee. "The officials who gave wrong figures should be terminated," he added.
