The Senate Standing Committee on Economic Affairs has raised serious procurement issues in road projects executed by the National Highway Authority (NHA) using foreign loans. The committee revealed concerns of collusive practices, conflicts of interest, and potential corruption in the awarding of contracts for the Central Asia Regional Economic Cooperation (CAREC) Tranche-III corridor project, according to a news report.
The report, released by the Senate Secretariat, noted irregularities in the involvement of contractors, including NXCC (Ningxia Communications Construction Co. Ltd), which had been previously disqualified. The committee identified issues such as document manipulation, payment discrepancies, and the lack of verification of contractors’ credentials, particularly for M/s Dynamic Constructors, M/s Rustam Associates, and NXCC.
The committee’s findings pointed to NXCC’s involvement in ongoing litigation related to the Multan-Lodhran project. The panel also uncovered a conflict of interest regarding the appointment of Mr. Zafar Hussain Siddiqui as an arbitrator, citing his past affiliations with M/s Dynamic Constructors and M/s Rustam Associates.
Despite the committee’s evidence showing Siddiqui’s connections, NHA officials claimed they were unaware of his prior association with the contractors.
Senator Saifullah Abro, the committee chairman, recommended that NHA file a petition in the Supreme Court, citing concerns of malafide intent and the facilitation of NXCC’s involvement in the CAREC project.
The Ministry of Communications also questioned NHA officials about how such a situation was allowed to develop.
Additionally, the panel raised concerns about incomplete documentation submitted by NHA, which only included auditor reports from M/s Dynamic Constructors and M/s Rustam Associates. The committee discovered discrepancies in payment records, where contractors received payments higher than their quoted share, pointing to signs of collusive practices.
The committee also examined the Gilgit-Shandur Joint Venture Motorway Project, highlighting further irregularities and document manipulation. Contractors involved in this project had claimed experience from unrelated organizations and submitted misleading documents.
The panel emphasized the need for thorough verification in large-scale projects, as it questioned the authenticity of the contractors’ claims and the incomplete audit trail of several projects. The committee’s report serves as a call for greater transparency and accountability in public procurement practices.
