Pakistan's central bank Hussain says in parliament meeting

Pakistan's central bank Hussain says in parliament meeting

ISLAMABAD: Prime Minister Shehbaz Sharif has taken swift action against alleged corruption and irregularities within the National Highway Authority (NHA) by suspending eight senior officials and forming a high-level inquiry committee to probe into the matter. The inquiry committee, constituted by the Prime Minister's Office, is tasked with investigating glaring irregularities, mala fide intentions, ghost tendering, collusive practices, and alleged corrupt practices in the award of a Rs170 billion international road project under the Central Asia Regional Economic Cooperation (CAREC) Tranche-III [1].

The Senate Standing Committee on Economic Affairs Division (EAD) has given the NHA a two-day deadline to provide documents clarifying the transparency in the award of the contract. Failure to do so could result in the cancellation of the contract and disqualification of the successful joint venture (JV) [1].

The committee questioned the NHA's failure to provide relevant documents for the past four months and expressed concern over the inquiry committee's ability to make informed decisions without these documents. The case is currently under investigation by five parliamentary committees and the Public Procurement Regulatory Authority (PPRA), which have identified serious violations of rules and corrupt practices in awarding the four lots of the CAREC Tranche-III project [1].

The inquiry committee includes retired federal secretary Muhammad Mushtaq Ahmed as the convener, along with other senior officials. Its terms of reference include reviewing NHA's current practices related to blacklisting contractors, examining due diligence during the opening of technical bids, assessing grievance redressal, evaluating delays, and suggesting ways forward [1].

The contract for the four lots of CAREC Tranche-III was awarded to a JV of NXCC, Dynamics Constructors, and Rustam Associates, despite this JV being disqualified two years ago for failing to complete a previous CAREC project on time [1].

The NHA has been given ample time to provide relevant documents to substantiate the eligibility, financial, and technical soundness of the JV firms and no violation to PPRA rules. However, the authority has failed to provide such documents, leading to confusion and concern among lawmakers and senior officials [1].

The CAREC Tranche-I, II, and III projects are in various stages of completion. Tranche-III consists of four road segments: Lot-1 (58km from Rajanpur to Jampur), Lot-2 (64km from Jampur to D.G. Khan), Lot-3 (112km from D.G. Khan to Tibbi Qaisrani), and Lot-4 (96km from Tibbi Qaisrani to D.I. Khan) [1].

The NHA Chairman, Sheharyar Sultan, apprised the committee that responses to certain questions were still awaited from relevant firms and departments, while some information had already been submitted to the Ministry of Communications. Senator Kamil Ali Agha termed the suspension of officers on a large scale a "very serious matter" and demanded clarity. Senator Saifullah Abro expressed shock over the award of the Shandoor-Gilgit road project to a firm previously disqualified for submitting fake documents [1].

References:
[1] https://www.dawn.com/news/1937251