Senate panel turns to NAB, FIA over alleged irregularities in foreign-funded power project 

The Senate Standing Committee on Economic Affairs Division on Thursday decided to directly ask the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) to investigate alleged irregularities and corruption in foreign-funded power sector projects.

The committee, chaired by Senator Saifullah Abro, also decided to brief the prime minister and forward its investigation report and recommendations to the Public Accounts Committee (PAC), NAB and FIA.

The decision was taken after the Economic Affairs Division (EAD) said it could not directly seek an inquiry into projects being handled by another ministry.

The committee directed the EAD to submit, within three days, all correspondence with the ministry concerned along with an implementation report.

During the meeting, members criticised a letter issued by an EAD section officer which stated that the matter did not fall within the committee’s jurisdiction.

Senator Kamran Murtaza said the committee should first determine whether it had the authority to proceed. Senator Kamil Ali Agha called the letter an attempt to create confusion and divert attention from irregularities identified by the committee.

EAD Secretary Humair Karim accepted responsibility for the letter but said there was no intention to disrespect parliament. He said the EAD had sought legal opinion from the Ministry of Law because the committee had asked it to write to NAB and FIA regarding matters related to the Power Division.

The EAD secretary acknowledged that the wording of the letter could have been drafted with more care.

Senator Murtaza said foreign-funded loans were mostly used for projects in Punjab, while provinces including Balochistan and Khyber Pakhtunkhwa also bore the financial burden of cost escalations and corruption.

He said designs of foreign-funded projects were often changed after loan approvals, contract prices were kept low at the start and costs were later increased without action against responsible officials.

Senator Dilawar Khan said the EAD facilitates foreign borrowing, while project implementation remains the responsibility of executing ministries. He questioned why the division sought legal opinion instead of acting on the committee’s recommendations.

Senator Abro said alleged corruption in foreign-funded projects had already been established in earlier meetings attended by EAD officials.

He said the Senate committee had the authority to directly refer matters to the PAC, NAB and FIA, but had earlier asked the EAD to act in order to strengthen its oversight role.

The chairman said the committee would mention the non-cooperation of both the EAD and the Power Division in its communication to the PAC, NAB and FIA.

Senators Mahmoodul Hassan, Syed Waqar Mehdi, Kamran Murtaza, Kamil Ali Agha, Haji Hidayatullah Khan and Ahmed Khan supported forwarding the committee’s report to the prime minister, PAC, NAB and FIA.

The committee then unanimously decided to write directly to NAB and FIA for inquiries into two Power Division projects and other foreign-funded projects.