Senate orders FIA probe into foreign-funded projects

Islamabad: The Senate Standing Committee on Economic Affairs has recommended an FIA investigation into alleged irregularities, cost discrepancies and suspected manipulation in foreign-funded development projects, raising serious questions over transparency, contract awards and the use of public funds.

The committee, chaired by Senator Saifullah Abro, directed the authorities to investigate alleged irregularities in the Emergency Flood Assistance Project (EFAP) in Sindh and also ordered action over suspected irregularities in major power sector projects funded through foreign assistance.

The chairman directed that a letter be written to the Chief Minister Sindh recommending an FIA probe into alleged discrepancies in the EFAP, particularly those relating to project scope, road lengths, estimated costs, bid values, tendering amounts and alleged awards of contracts to specific construction companies.

The committee was informed that 60 percent of work under EFAP had been completed across 17 districts of Sindh for rehabilitation of flood-damaged roads. However, lawmakers questioned the preparation of the project’s initial PC-I, particularly the absence of a clearly defined scope of work, and raised concerns over foreign lending agencies approving loans without adequate consideration of transparency and project requirements.

A major discrepancy also came under scrutiny. The committee was informed that 1,622 kilometres of damaged roads were initially identified, while only around 400 kilometres were approved for rehabilitation under the revised PC-I, whereas approximately 829 kilometres were ultimately constructed.

The committee also questioned the alleged pattern of differences between estimated costs, bid prices and tendering amounts, besides allegations that contracts were awarded to particular construction companies.

The chairman directed the Economic Affairs Division to arrange a meeting with country directors of foreign lending institutions to discuss the anomalies and ensure corrective measures.

Separately, the committee reviewed alleged irregularities in the 765 kV Dasu-Islamabad Transmission Line Project and the ACRS Bunting Conductor Project. Senator Saifullah Abro said the FIA and NAB had already been directed to investigate the alleged irregularities.

The chairman appreciated FIA efforts to uncover alleged misuse of goods imported under tax-exempt schemes despite resistance from the Federal Board of Revenue (FBR), and directed strict action against officials found responsible.

The committee also expressed serious concern over the Power Division’s reluctance to provide details about the auction of defunct power plants. It questioned allegations that certain individuals had used the name of a government-owned company to acquire auctioned plants after paying only 10 percent of the required amount.

The chairman ordered an inquiry into the matter, including allegations concerning fictitious names submitted as members of the Board of Directors of a public-sector company. The alleged involvement of the GENCO Holding Company chief was also ordered to be thoroughly examined.

The Dasu-Islamabad transmission project also came under criticism over delays attributed to administrative and right-of-way issues. Senator Abro expressed concern over the appointment of an allegedly inexperienced and ineligible consultant, claiming that the consultant was incapable of properly testing imported project material.

The committee further questioned the composition of the project’s Board of Directors and stressed that members should possess relevant expertise and experience.

The Economic Affairs Division was directed to take up the matter with the Prime Minister through the relevant minister, while the chairman said he would personally pursue outstanding issues with the National Highway Authority, the Khyber Pakhtunkhwa government and other stakeholders.

The committee directed that the Dasu-Islamabad transmission line project be treated as a priority and completed at the earliest to safeguard public funds.

The committee also expressed concern over prolonged load-shedding in Sindh and urged authorities to utilise available capacity of Independent Power Producers (IPPs), particularly in view of capacity payments being made to them.

The reversal of the net-metering policy was also discussed, with officials informing the committee that around 400 cases were currently under process. The chairman directed IESCO to resolve the cases while protecting consumers’ legitimate rights and also address complaints of overbilling and load-shedding in Bahria Town.