M-5 maintenance: Senate panel surprised by selection of NHA-rejected company

ISLAMABAD: The Senate Standing Committee on Economic Affairs expressed astonishment at the selection of M/s Ningxia Communications Construction Company (NXCC) for a new project (M-5 maintenance) despite it having been declared a non-performing entity twice by the National Highway Authority.

A meeting of the Senate Standing Committee on Economic Affairs was held under the chairmanship of Senator Saifullah Abro, which reviewed the implementation status of its earlier recommendations on the ADB CAREC Tranche-III NHA Project (Rajanpur – D G Khan – D I Khan). The Committee was surprised when it came to know that the Jalalpur Pirwala section of the M-5 repair work had been carried out by NXCC’s joint venture partner Rustam Associates despite its pathetic record. The committee chairman expressed strong displeasure over the absence of the Secretary of Communications and Chairman NHA from the meeting. The Chairman directed the Economic Affairs Division to ensure their presence at the next meeting. The Committee was briefed that a total of nine inquiries had been conducted into irregularities in the project.

The committee also raised concerns regarding NHA’s responses to petitions that appeared favourable to the delinquent company. It noted that NHA was awaiting approval of the revised estimates for the project from ECNEC. In response to a query raised by the Committee, it was revealed that NHA had not written any formal letter to the ADB and had only engaged in verbal communication. The committee head took serious notice of this and questioned what would happen if the inquiry report of the Committee constituted by the Prime Minister did not present its findings for another year. He stressed that the NHA should not wait for the Inquiry Committee’s report and should write to the ADB as previously recommended. The committee had already noted that the tender processing was manipulated by NHA officials and the contractor. The committee also learned that its earlier findings were not included in the response submitted by the NHA to the Islamabad High Court regarding the petition filed by NXCC. Instead, NHA officials made another mistake and submitted a manipulated stance that supported NXCC’s faulty tendering process.

The chairman directed the NHA to take strict disciplinary action against its legal team and recommended the termination from government service of Liaqat, Deputy Director (NHA). He further instructed the NHA to write a detailed letter to the Asian Development Bank (ADB), incorporating the Committee’s findings and recommendations, and to submit a compliance report to the Standing Committee within two days. The Committee also recommended that the EAD take action against the officials from the NHA legal team and other officials involved in submitting the so-called stance in favour of NXCC and share the report with the Prime Minister’s Office.

The committee received a briefing on the EDCF Project (N-45), linking Chakdara to Chitral. It is recommended that NHA ensure strict prevention of overloading, noting that such practices severely damage road infrastructure. The Chairman directed NHA to submit a comprehensive brief on the repair works of the EDCF Project (N-45).

Regarding the release of unspent funds allocated for the renovation and restoration of the historic core of Multan city, the committee deliberated on the issue of unspent funds originally allocated for the renovation and restoration of the historic core of Multan city. The committee chairman recalled that members had already discussed the matter in detail during the previous meeting and had recommended (EAD) to provide the details, including the full site-wise details, the six project components, estimated costs, utilization, and the percentage of work completed under the Multan heritage scheme, along with explanations regarding any transfers of funds to other projects.

The EAD informed the Committee that funds were received from an Italian loan, which was later converted into a grant with the condition that it would be used strictly for public welfare. The funds were specifically intended for the preservation of the historical core of Multan City. The Committee noted with concern that the Punjab Government utilized these funds (Rs. 251 million) for other purposes, contrary to the intent of the Italian government, which had earmarked them for heritage, historical and cultural preservation.

It was also revealed to the committee that Rs 430 million had been diverted to the Benazir Nashonuma Programme. The Committee was surprised to learn that none of the allocated funds had been utilized at the sites identified in the initial PC-1. After detailed discussions, the Committee unanimously disposed of the matter and decided that the remaining amount of Rs. 423 million must be used solely for the renovation and restoration of Multan’s historic core, in accordance with the original allocation mentioned in the PC-1.

Copyright Business Recorder, 2025