Rs 5 billion loss caused to national kitty: Erring CAA officials demoted, PAC told

The Civil Aviation Authority (CAA) has demoted three officials involved in a Rs 5 billion financial loss to national kitty while setting aside the recommendations of an inquiry committee, constituted on the orders of Supreme Court, which had recommended criminal charges against the officials involved. This was stated by the federal secretary aviation at a Public Accounts Committee meeting which held here under the chairmanship of Shahbaz Sharif on Thursday to discuss and review the audit paras related to the CAA for the year 2012-13.
The auditor general of Pakistan (AGP) briefing the participants said that the project of New Islamabad International Airport was started at an estimated cost of Rs 37 billion in 2007 with a completion date of 2010, but as a result of continued delays, the project cost reached Rs 105 billion.
The AGP further said that the CAA allowed massive irregularities in the project as it allowed construction of an additional runway with a cost of Rs 3.5 billion which is useless. Member committee Naveed Qamar said that originally the contract was given to an international firm which didn't come to undertake the project but handed it over to a local firm. Responding to a question of Naveed Qamar, the CAA officials accepted that two consultants deputed on the project were not civil engineers.
Khawaja Asif, once again, said that there is a need to revise Public Procurement Regulatory Authority (PPRA) Rules, saying that even director general (DG) PPRA has failed to give satisfactory answers to the questions raised by the members. The members of the opposition Pakistan Muslim League-Nawaz (PML-N) and ruling Pakistan Tehreek-e-Insaf (PTI) during the meeting traded barbs over the PAC chairmanship by Shehbaz Sharif.
During the meeting, Sharif said that Member of National Assembly (MNA) of PTI, Sardar Nasrullah Khan Dreshak has written him a letter that he (Shahbaz Sharif) can't head the PAC as he was summoned by Federal Investigation Agency (FIA) in the Orange Line Train (OLT) and Multan Metro Bus projects; therefore, according to the government he is not eligible to head the committee.
Sharif said that almost Rs 74 billion was saved in the OLT project. Sharif asked the Director General FIA Bashir Memon if the agency has summoned him in any case. The DG FIA responded that the investigation agency has not issued any summons to the leader of the opposition.
Sharif said that Imran Khan has levelled allegations against him in the OLT and Multan Metro Busproject, but the FIA never summoned him. He further said that the PTI government had even sent a delegation to China to get any clue to corruption against him in the OLT, but the team returned disappointed from China. Naveed Qamar said that such objections are not suitable, adding if anybody is associated with any audit objection, he/she must not head that particular meeting. He maintained that such objections were also raised against the prime ministers.
Rana Tanvir said that many ministers in Khyber Pakhtunkhwa and Punjab are under investigation by various agencies, so on this account the members must avoid such demands. He said that the parliamentarians must not turn the Parliament into a 'joke club'. Khawaja Asif said that there is a need to keep a difference between the environment in the National Assembly and the PAC.
PTI Senator Shibli Faraz said that the PAC was reviewing and discussing the aduit paras of the previous government and seemingly whenever an objection is raised on a project undertaken by the former government, members of a certain party are taking defensive position. Responding to Shibli Faraz, Khawaja Asif said that PAC was not a forum of parties but of the Parliament. "When PAC is undertaking audit paras of a certain period and the members of the party in power during that period must not attend the meeting," Shibli Faraz opined.
Naveed Qamar responded to Shibli Faraz, "Your objection is baseless and useless." He further said that the PAC is only reviewing and discussing audit objections and it has no authority to hang anybody, it can only pass certain directives to relevant quarters.
Sheikh Rohail Asghar said that past reports of PAC must be handed over to PTI members and PTI members must also be given a briefing on the functions of the PAC. He added that PTI members are trying to get media attention as they have nothing to contribute positively.
Audit officials informed the committee that M/s Lagan, the lead partner of the project Construction of New Benazir Bhutto International Airport was not fully mobilised on site. The work has been split into various packages and against the approved 60:40 ratio.
During audit it was found that an agreement on Package-I Airside Infrastructure (Civil Works) of the project signed between CAA and Joint Venture of M/s Lagan-Husnain, (comprising Lagan Construction Limited and Husnain Cotex Ltd with Lagan Construction Ltd as lead partner) on July 24, 2008 with a bid cost of Rs 11.825 billion with completion period August 27, 2010.
Audit further found that the Joint Venture with whom the agreement was executed was changed from Lagan-Husnain to Lagan- Technical-Habib in January 2010. Audit officials said that the sanctity of bidding was completely compromised and the work was awarded to the new JV without calling for open tenders. Deed of Accession was signed by the Project Director whereas original agreement was signed by the Director General for and on behalf of CAA. The JV change was signed by the Project Director (BBIAP) without authority and provision of clause in the agreement.
The federal secretary aviation informed the panel that three officials of the Civil Aviation Authority (CAA) were demoted over their involvement in causing Rs 5 billion financial losses to the national kitty. He further said that the recommendations of an inquiry committee constituted on the orders of Supreme Court of Pakistan (SC), which has recommended criminal charges against the officials involved, were violated.