NHA, CCC embezzled over Rs7bn: PAC

Published April 5, 2002

ISLAMABAD April 4: The ad hoc public accounts committee has taken strong exception to irregularities and mismanagement committed by the National Highway Authority (NHA) and Civic Centre Company (CCC).

The committee found that the two organizations embezzled over Rs7 billion and ordered an inquiry against the officials concerned including a former communications secretary for inflicting huge financial loss to the national exchequer.

The committee continued reviewing of the audit reports of the ministries of commerce and communication for the year 1999-2000 on Wednesday.

The PAC meeting, presided over by PAC chairman H.U.Beg, noted with concern the irregularities in the establishment and working of CCC and ordered initiation of inquiry against its creators, including former petroleum and communications secretary Salman Farooqi.

The meeting was informed that the CCC was jointly owned by Wapda, KESC, PTCL, Sui Southern and Sui Northern Gas companies under coercion of the highest office. While Wapda borrowed money from banks to contribute to this company and to meet wasteful expenditure of millions of rupees without achieving any of the stated objectives.

All the receivables, the committee was told, were perhaps fictions and can not be realised.

The committee was told that CCC was set up on the orders of the then prime minister which committed to establish 224 civic centres all over the country but set up and managed only two one each in Islamabad and Karachi which also failed to click costing the national kitty heavily.

While reviewing the audit reports of NHA the committee was informed that no mechanism was adopted for the internal audit of the accounts of the authority and the relevant records were denied to the auditor general’s staff despite repeated assurances.

The NHA officials failed to defend the embezzlement worth Rs7 billion in the motorway and other contracts besides making overpayment worth Rs120 million and misappropriation of Rs6 million was also admitted.