PAC orders probe into corruption in PWD, other departments

A sub-committee of Public Accounts Committee (PAC) has directed the federal secretary Ministry of Housing & Works to probe massive irregularities in various attached departments through departmental inquiries and report to the panel within 14 days. These directives were passed by the sub-committee of PAC which met here on Monday with MNA Shafqat Mehmood in the chair.
The committee while reviewing and discussing the audit paras of the Ministry of Housing & Works and its attached departments was informed by the audit officials that project audit report on the construction of National Accountability Bureau (NAB) provincial headquarter in Punjab was started by Pakistan Public Works Department (PWD) in 2010-11 but the building has not been completed yet due to one reason or the other.
The audit has unearthed irregularities to the tune of Rs 429.5 million in the project. To settle the issue, two separate departmental audit committee (DAC) meetings were held, first in 2013 and the 2nd on February 8, 2017, but no progress was made. The officials said that it was decided to get entire record of the project, once again, verified from the audit department.
As per DAC report 2013, the director general PWD informed that out of Rs 4.9 million, Rs 1.7 million unauthorised payment for internal electrification of the under-construction NAB provincial headquarters has been recovered. The committee rejected the PWD stance and asked the secretary to settle the matter as per DAC recommendations.
The committee expressed serious concern over massive corruption in Pak PWD and other attached departments of the Ministry of Housing & Works. The panel was informed that officials of the Pak PWD awarded irregular contract of Rs 127.99 million to a favourite contractor, M/s Hasnain Cotext Limited, by ignoring the lowest bidder M/s HM Associates.
The DAC on the subject has directed the PWD officials to recover the entire amount from the contractor with mark-up, as it was paid without the provision of contract. It further directed the DG PWD to fix responsibility for granting mobilisation advance in contravention of the contract agreement by Engineering and Mechanical Division PWD Lahore.
The panel also expressed anger over the Pak PWD department's failure to obtain performance security of Rs 12.2 million since 2009 prior to the start of work on the project. The committee also directed the secretary to settle the matter related to non-obtaining of insurance cover of Rs 122 million and present the report to the committee within 14 days.
While discussing the matter of irregular award of work amounting to Rs 122.047 million, the panel asked the officials to thoroughly investigate it and present the report to the committee as it was a criminal act and against the PPRA Rules. The panel was informed that irregularities worth Rs 774 million were unearthed in Estate Offices and other projects undertaken by Pak PWD. These matters had been discussed in various DAC meetings held since May 2011 to February 2017. The PAC in its meeting held on February 12, 2017 had settled 19 paras out of the total 64 paras, while an amount of Rs 774 million remains unsettled. The sub-committee directed the secretary housing to take serious notice of abovementioned irregularities.
Irregularities to the tune of Rs 53.6 million were unearthed in the construction of specialized Commando Training Centre for Anti-Dacoit in district Nawabshah undertaken by Ministry of Housing in 2011. According to audit report, in various sections of the project from delay in tendering to execution, multimillion rupees financial looses were incurred to the national kitty.