Times of Islamabad

Corruption worth billions unearthed in NHA mega projects during PML (N) tenure

Corruption worth billions unearthed in NHA mega projects during PML (N) tenure

*ISLAMABAD: Corruption worth billions has been unearthed in NHA megaprojects during PML (N) tenure by a* special audit conducted by the AuditorGeneral of Pakistan (AGP).

AGP has unearthed corruption worth billions of rupees in the NationalHighway Authority (NHA) projects, it was learnt on Saturday.

Well-informed sources told Pakistan Today that a special audit has managedto collect strong evidence of corruption in the Lowari Tunnel andGwadar-Ratodero projects of NHA. On the advice of federal minister MuradSaeed, the evidence has been forwarded to Prime Minister’s InquiryCommission for necessary action in this regard, they added.

Sources said that the government exchequer had to bear a loss of Rs3.55billion owing to corruption in the Lowari tunnel project, whileapproximately Rs420.59 million were lost in the Gwadar-Ratodero project.

“Corruption was done through undue delays and overpayments to contractors,”sources claimed.

Documents available with Pakistan Today disclosed that in Gwadar-Ratoderoroad project (M-8), losses incurred by the government exchequer due tore-rating of items, which did not meet the criteria given in the contractagreement, were Rs425 million.

Meanwhile, overpayment by allowing the difference of revised and originalrate to the main contractor caused a loss of Rs38.4 million.

Moreover, overpayment on account of incorrect rates of high-speed dieselamounted to Rs7.149 million, while losses due to non-recovery of additionalmobilization advance and non-validation of bank guarantee were recorded atRs48.5 million

Also, losses due to unjustified calculation/payment on re-rating itemswithout fixing of basic rates were Rs23,200 million, while non-recovery ofliquefied damages caused a loss of Rs111.5 million.

In the Lowari Tunnel Project, irregular/unauthorized expenditure, beyondthe revised PC-4 provision, was Rs3,978.047 million, while loss to thepublic exchequer due to non-execution of access roads work in conformancewith the provision of PC-1, was Rs3,554.373 million.

Extra payment of price escalation due to enhancement of the rate ofexcavation through re-rating was Rs1,148.629 million, whereas overpaymentto the contractor due to the enhancement of the rate of excavation throughre-rating was Rs504.712 million.

Unjustified burden on the public exchequer due to inordinate delay inprocurement and execution of operational and complementary buildings wasRs459,559 million.