ISLAMABAD: The Auditor General of Pakistan’s recent report has said that National Disaster Management Authority (NDMA)’s award of contract to National Logistic Cell (NLC) for the construction of the National Emergency Operation Centre (NECO) at a cost of over Rs1.89 billion was not legally compliant.
The audit observed that NDMA awarded the contract amounting to Rs1, 899.151 million to NLC for construction of the NEOC, and expenditure of Rs148.760 million was incurred during FY 2024-25.
However, prior approval of the building plan/design from the Building Control Directorate of the CDA was not obtained.
The construction of a permanent structure at the site was contrary to Islamabad Residential Sectors Zoning (Building Control) Regulations, 2020, which required prior approval for any construction activity. The audit report said the construction was also inconsistent with the condition imposed by CDA, whereby land measuring five acres was allotted for temporary prefabricated structure only with explicit restriction against permanent construction.
Nonetheless, the management stated that the NEOC was a temporary prefabricated structure under the NDMA Act, 2010 and not subject to regulations applicable to permanent constructions. However, the auditor general’s report said the nature and scale of work executed indicate characteristics of a permanent structure, and requisite approvals under applicable building regulations were not obtained prior to commencement.
In March last year, a controversy arose during the Public Accounts Committee (PAC) meeting over NDMA awarding the Rs1.89 billion contract directly to NLC. Questions were raised by PAC, chaired by Junaid Akbar Khan, about the transparency of the bidding process, as only military-affiliated institutions were considered.
An audit of the NDMA for the financial year 2024-25 revealed significant observations relating to procurement compliance, contract management, financial reporting, taxation, internal controls, civil works governance and relief stock management. The issues identified primarily stemmed from weaknesses in internal controls, non-adherence to prescribed procedures, inadequate documentation and deficiencies in financial discipline.
The NDMA management agreed on paras related to non-deduction of taxes/duties and to solicit clarification from concerned divisions/departments/division on various audit observations in near future. The report pointed out that NDMA’s audit compliance overall had significantly deteriorated over time, shifting from an 88 per cent settlement rate in earlier years (2016-21) to zero compliance on the most recent directives from 2023-25. While the authority resolved 23 of its first 26 audit paragraphs, it currently faced a growing backlog of 18 active directives, 83 per cent of which remained completely unaddressed, highlighting a critical breakdown in recent oversight and follow-up mechanisms.
The auditor general suggested that NDMA should ensure statutory compliance, including restricting NDM fund to authorised use, maintain complete expenditure and relief documentation. It also recommended that dues were recovered and tax compliance ensured, besides following PPRA rules strictly as well as obtaining PC-I approvals and ensuring lawful HR practices.
When contacted, an NEOC representative said the organisation had responded to the concern in the past.
“Construction of NEOC was undertaken in compliance with Public Procurement Regulatory Authority (PPRA) rules. The objections raised were minor concerns and responses had been shared with the Auditor General’s office,” the official said.
Published in Dawn, June 28th, 2026