PAC takes notice of undue favour

Published April 6, 2002

ISLAMABAD, April 5: The Ad-hoc Public Accounts Committee (APAC) was told on Friday that disciplinary action had been taken against 1,800 officials - some of whom were dismissed, others suspended or sent on forced retirement on charges of financial mismanagement and irregularities.

The committee, during review of various subordinate officers of the ministry of communication, noted with concern the showering of undue favours on a Turkish construction company, Bayinder, thereby losing US$32.216 million.

It was told that the project director Peshawar-Islamabad motorway, in contravention of an agreement, accepted bank guarantee in Pak rupees only, and in proportion of currencies in which contract price was payable. As a result US$32.216 million were given without justification.

The PAC said that the said amount was paid on the orders of higher authorities despite the written disagreement of the NHA; the case is with the NAB for investigations.

The NHA during discussion with the committee agreed that an overpaid amount of Rs592 million ought to be recovered from different contractors.

The committee asked chairman NHA to submit the complete record of various projects to the audit department as well as to the PAC including reports of the cases referred to the NAB by NHA.

The audit officials blamed the NHA for making payment of Rs167.349 million to a contractor of Naran-Jalkhad Road project for rock excavation without going through drilling or blasting and soil test.

Similarly, project director Sukkur bypass and bridges paid Rs89.178 million for an item of steel reinforcement in piles of bridge separately, while it was not admissible, because piling was a complete unit payable in liner meter, including all material under specification clause or the NHA rules.

The NHA also suffered a loss of Rs98 million due to non-recovery of weighing charges and wrong estimation.

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