ISLAMABAD: The Senate Standing Committee on Economic Affairs identified serious irregularities and alleged large-scale corruption in the award of contracts for executing development projects in the power sector.
The Senate Standing Committee on Economic Affairs met here on Monday under the chairmanship of Senator Saifullah Abro to review the progress of key development projects, particularly in the water and power sectors, and examine matters related to transparency, financial management, and implementation of previous recommendations.
READ ALSO: Four dozens power projects to get Rs92bn
The committee was briefed on the implementation status of its previous recommendations regarding ongoing power sector projects financed by multilateral agencies, including the 765kV Dasu–Islamabad Transmission Line Project (Lots I to VI), ADB-funded Lot-II A (ASCR Bunting Conductor), and the 2 x 660 MW Coal-Fired Power Project at Jamshoro. The committee observed serious irregularities and alleged large-scale corruption in the award of contracts and recommended strict action against those responsible.
The stance presented by officials of the Power Division was unanimously rejected by the committee.
Serious concern was expressed by the committee over the non-recovery of PKR 1.282 billion paid to a contractor on account of sales tax in respect of the 765kV Dasu–Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV).
The Power Division apprised the committee that the audit had termed the payment a procedural irregularity and recommended its settlement. However, the committee raised strong reservations regarding the authority of the audit to override or supersede the recommendations of the committee.
The chairman further highlighted that the international companies were willingly declared disqualified after establishing the stance that the company failed to submit the attested copies of the documents, and the other company was also disqualified on the same basis.
The committee recommended that the EAD formally write to the Federal Investigation Agency and the National Accountability Bureau to initiate action against the Board of Directors and concerned officers. It also recommended the scrutiny of the assets of the officers, including those from the Power Division.
The committee noted multiple inconsistencies in project execution, particularly concerning the 765kV transmission line. Despite assurances from the Power Division to take action against those responsible, no tangible progress has been made. The Managing Director of the National Grid Company informed the Committee that an explanation had been sought from the General Manager of the Dasu–Islamabad project; however, the Committee reiterated that the irregular payment of Rs. 1.282 billion remains unjustified.
Relevant documents were presented before the Committee. It was informed that the lowest bid was USD 208 million, while the second lowest bid stood at USD 265 million. The Chairman observed that the concerned company failed to submit the required performance certificate within the stipulated time. Consequently, the National Grid Company of Pakistan Limited was directed to submit a comprehensive report on the project within fifteen days.
The Committee also reviewed its previous recommendation regarding the audit of the 2 x 660 MW Coal-Fired Power Project at Jamshoro. The concerned authorities informed that the audit is currently in process. The Chairman revealed that the project had been awarded to the third lowest bidder instead of the first and second lowest bidders, with a significant difference of approximately Rs 600 million. It was further noted that the bids of the first two bidders were rejected on the basis of communications reportedly issued by the Embassy of China in Pakistan. The committee termed this a serious instance of mismanagement and recommended action against the concerned officials of National Engineering Services Pakistan and the Power Division. Representatives of NESPAK informed that an inquiry committee had been constituted to look into the matter; however, the report of the said committee has not been submitted to the Senate body.
The Chairman reiterated that the third lowest bidder had quoted approximately PKR 600 million higher than the lowest bidder.
The panel directed that the matter be brought to the notice of the Cabinet Division and recommended termination of the procurement team associated with the project. NESPAK was further directed to suspend all officers found responsible.
Copyright Business Recorder, 2026
Comments