Senate Panel Uncovers Alleged Corruption and Irregularities in Mega Projects

The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, convened today, uncovering shocking revelations about alleged corruption and irregularities in various development projects, particularly those involving international financial institutions. During the session, Senator Abro made a startling claim, stating, “International financial institutions provide loans and then halt investigations into projects.” He further revealed that he had met with the former Senate Chairman and had written letters to stop such actions. “The job of financial institutions is to give loans; we have to ensure transparency in projects,” Abro asserted, urging the Minister of Economic Affairs to take action. “I would not give Rs. 5,000 of my own to anyone to misappropriate, how can I allow billions of the country to be embezzled? Billions of rupees in corruption are taking place, and Ahsan Iqbal (Federal Minister for Planning, Development & Special Initiatives) must stop this corruption,” Abro said. Senator Saifullah Abro brought to light a specific case involving a Chinese company, NXCC, which was awarded a contract worth Rs. 6.8 billion for the Multan-Lodhran Highway in 2021. He revealed that the contract was cancelled in 2023, and the company was disqualified. Despite completing only 8% of the road and receiving Rs 2 billion, the same company was allegedly awarded another contract worth Rs 172 billion in 2024, in violation of regulations. When Senator Kamil Ali Agha inquired about the local partner in this venture, Senator Abro identified it as “Rustam Associates.” Senator Agha quipped, “These are truly hidden Rustams,” adding that often Chinese company names are used while local companies perform the actual work. Senator Abro expressed dismay that the National Highway Authority (NHA) has yet to provide the committee with the contract documents, despite previous requests. He highlighted that NHA has given three major contracts to a blacklisted company, pointing out billions of rupees in irregularities. He stated that he had written to the Minister of Economic Affairs three times regarding these discrepancies and demanded an update on any action taken. Special Secretary Economic Affairs Division clarified that while their division can discuss information and projects with ministries, the implementation and accountability for projects fall under the responsibility of the relevant ministry. Regarding the Multan-Lodhran Highway project, Senator Abro questioned the increase in cost after re-tendering. The NHA Chairman confirmed that the cost has now escalated to Rs 15 billion. A contentious point raised was the appointment of the blacklisted company’s lawyer as an arbitrator. NHA officials stated that the court appointed the arbitrator, but Senator Kamran Murtaza questioned why NHA did not object. Senator Murtaza further revealed that this lawyer ruled against NHA, leading to an NHA payment of Rs. 1.5 billion. The NHA Chairman admitted that the NHA’s legal wing is “very weak,” a statement Senator Murtaza countered by alleging that NHA officials intentionally sabotage cases. Senator Abro disclosed that the Chinese company, in its High Court response, stated that it was working for only three percent, labeling this as a case of “ghost tendering.” He questioned how a blacklisted company could be re-tendered. Senator Kamil Ali Agha asserted that contractors are often given benefits out of greed, deeming it a “national crime” that fuels feelings of deprivation in smaller provinces. He outright stated that the tendering process is “managed.” Senator Agha ironically questioned if NHA officials were so naive as to be unaware of these wrongdoings. Senator Abro urged NHA officials not to defend wrongdoings, warning that if the case were sent to the FIA, the entire NHA team would be implicated. He questioned the delay in providing documents, to which NHA officials claimed there were 90,000 pages to photocopy. Senator Abro then alleged that a former NHA member was attempting to conceal documents, stating that if NHA doesn’t provide them, the documents will “come to us on their own.” Senator Abro also criticized the role of international financial institutions, stating that the Asian Development Bank, despite providing loans, cannot impose its conditions on project work. He emphasized that the Economic Affairs Division and NHA must take steps for transparency, alleging that there is a “22 percent commission” on contracts for projects funded by the World Bank and Asian Development Bank. In a comparative statement, Senator Abro noted that the situation of development projects in Punjab is better, while in Sindh, projects “disappear” when floods occur. Economic Affairs Division officials reiterated that monitoring projects run with the cooperation of international financial institutions is the responsibility of the implementing department. Senator Kamran Murtaza demanded a detailed report from NHA on the judicial proceedings. Senator Saifullah Abro concluded by highlighting the hypocrisy of NHA for rejecting one bidder for not signing a technical bid, while concocting “strange justifications” for their favored blacklisted bidder, again urging NHA officials not to support wrongful actions.