Senate panel flags corruption in power projects, seeks FIA, NAB action

The Senate Standing Committee on Economic Affairs, which met on Monday under the chairmanship of Senator Saifullah Abro, identified irregularities and alleged large-scale corruption in the award of contracts for power sector development projects, recommending action against officials involved.

According to a news report, the committee reviewed progress on key water and power projects and examined issues related to transparency, financial management, and implementation of earlier recommendations.

During the briefing, officials presented updates on projects financed by multilateral agencies, including the 765kV Dasu–Islamabad Transmission Line, an ADB-funded transmission component, and the 2x660MW coal-fired power project at Jamshoro. 

The committee rejected the position taken by the Power Division on these projects.

The panel expressed concern over the non-recovery of Rs1.282 billion paid to a contractor as sales tax for the Dasu–Islamabad Transmission Line grid station at Islamabad West. While the Power Division described the payment as a procedural irregularity flagged by the audit, the committee questioned the justification and raised objections over the audit’s position.

The committee noted inconsistencies in the execution of the transmission line project and observed that, despite assurances, no progress had been made to address the issue. It directed the National Grid Company to submit a detailed report within 15 days.

Documents presented to the committee showed that the lowest bid for the project stood at $208 million, while the second lowest was $265 million. The committee was informed that bidders were disqualified on documentation grounds, which drew scrutiny from the panel.

In the Jamshoro coal power project, the committee found that the contract had been awarded to the third-lowest bidder, with a cost difference of about Rs600 million compared to the lowest bid. The bids of the first two bidders were rejected based on communications attributed to the Embassy of China, which the committee termed a serious case of mismanagement.

The panel recommended that the Economic Affairs Division write to the Federal Investigation Agency and the National Accountability Bureau to initiate action against the board members and relevant officials. It also called for scrutiny of the assets of officers involved, including those from the Power Division.

The committee further directed that the matter be taken up with the Cabinet Division and recommended termination of the procurement team linked to the project. National Engineering Services Pakistan (NESPAK) was instructed to suspend officials found responsible.

Authorities informed the committee that an inquiry into the Jamshoro project had been initiated, though its report has not yet been submitted.