News Detail
Event Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament House Islamabad.
Event Date: 2025-09-01
The Senate Standing Committee on Economic Affairs met today at Parliament House, Islamabad, under the chairmanship of Senator Saifullah Abro. The meeting was attended by Senators Haji Hidayatullah Khan, Muhammad Azam Khan Swati, Syed Waqar Mehdi, Falak Naz, Rubina Khalid, Syed Faisal Ali Subzwari, Kamil Ali Agha, along with senior officials from the relevant ministries and departments.
While discussing the agenda item on the CAREC Tranche-III project, Chairman Committee Senator Saifullah Abro noted that Committee had been examining this issue since its 14th meeting. He briefed the Committee on the key findings and deliberations conducted over the past five months. He stated that during this period, the Committee identified several serious concerns, including NXCC’s previous disqualification, arbitration disputes, payment discrepancies, document manipulation, and collusive bidding practices. The Committee had repeatedly asked the NHA to provide work orders, completion certificates, and other basic documents of the companies involved. However, the NHA failed to submit the required documents to date, despite a commitment made by the CEO, NHA, in the last meeting to provide them within two days.
He highlighted that contract was initially awarded based on auditor reports without properly verifying the credentials of M/s Ningxia Communications Construction Co., Ltd. (NXCC), M/s Dynamic Constructors, and M/s Rustam Associates. The lead partner had previously been disqualified in the ADB CAREC Tranche-II Project and the ADB Yarik-Zhob Project, yet was declared qualified for CAREC Tranche-III. The Committee maintained that M/s NXCC was a non-performing firm and was currently involved in litigation related to the Lodhran-Multan Project. The department should not have agreed to arbitration since the project had already been terminated by the NHA Executive Board for non-performance. Instead, it should have challenged the matter in the Supreme Court.
The Chairman also expressed concern that NHA proposed Mr. Zafar Hussain Siddiqui as an arbitrator, despite his past association with the JV partners of M/s NXCC. He further informed that PPRA had already issued its final order regarding the complaint related to this project.
During deliberations, Senator Muhammad Azam Khan Swati raised key questions, including whether the evaluation process for this project was conducted in line with ADB’s standard bidding documents, and whether ADB’s prior review had been obtained. He further asked about the cost-benefit of the project, the possibility of cost overruns, and future escalation charges. He emphasized that all issues related to the procurement process should have been addressed before submission of the bid evaluation report to ADB.
Senator Rubina Khalid inquired whether ADB had issued a NoC to the company to participate in the project. The Special Secretary, EAD, informed the Committee that ADB has its own safeguards and that the bidding and technical report had been submitted to ADB for review.
In response to another query from Senator Rubina Khalid, the Committee was informed that once the Board of the lending agencies approved the loans, they were signed accordingly. If the loan amount is disbursed within the agreed timeframe, no commitment charges are applied. She added that these soft loans play an important role in addressing the needs of society.
Senators also expressed serious concern over the absence of the Secretary, Ministry of Communications, and the CEO, NHA, from the meeting, stating their presence was essential for resolving the matter effectively.
The NHA officials updated the Committee regarding the Senate Secretariat letter dated 04-08-2025 and informed that letters had been sent to all firms, but they had refused to provide the required documents.
Syed Faisal Ali Subzwari asked whether average annual turnover of contractors is checked by NHA for every project. The Committee was informed that auditor reports were considered sufficient and accepted as-is by the concerned department. Senator Rubina Khalid noted that auditors prepare financial statements based on the information provided by the firms themselves. Syed Faisal Ali Subzwari pointed out that auditors are not supposed to give opinions in such letters and suggested handling the matter carefully. Senator Rubina Khalid further suggested that NHA verify the status of the lead partner through the relevant embassy.
The Committee was shocked to learn that the firms had sent their responses to their auditors instead of directly to the NHA. The Chairman observed that the CEO, NHA, had committed to providing the required documents within two days but had failed to do so. He reiterated his commitment that if the firms continued to withhold documents, ADB will be informed in writing.
After extensive deliberations, the Committee concluded that NHA failed to provide the required documents. The Auditor of local firms, RA & DC, admitted that they did not have the documents, and both contractors also refused to provide them, as indicated in the attached letters. The Committee further concluded that A.B.M & Co. had prepared the auditors’ sheets. Additionally, RA & DC did not meet the mandatory criteria for average annual turnover. The documents submitted by auditors were deemed fraudulent and unverified. The Committee noted that due process had not been followed for this project. Therefore, it decided to declare the bids null and void as it was alarming that the auditor had no record with him and how he has submitted the record to the Committee.
The Committee recommended that NHA write to ADB within two days regarding the firms’ non-compliance, with copies of the letter sent to the Prime Minister’s Office and the Committee. Syed Faisal Ali Subzwari suggested that bidding documents for all ongoing projects be vetted again by NHA’s legal team, or by an independent legal expert, to safeguard national interest. Senator Azam Swati called for strict action against NHA officials involved in the irregularities. Senator Syed Waqar Mehdi suggested referring the case to the Prime Minister’s Secretariat through the office of the Hon. Chairman Senate.
The Committee further recommended that EAD officially notify ADB that the bids of M/s NXCC, RA, and DC were technically invalid and were manipulated due to the malafide intentions of NHA officials and the contractors. It recommended sharing the Committee’s findings with ADB and blacklisting all three firms for submitting fake documents. The Committee also recommended that NHA initiate legal action against the auditor, A.B.M & Co., for submitting a fake report without supporting documents. It noted that auditor submitted working papers for payments mentioned in the audit sheets without any supporting documentation, and against the arbitrator, Mr. Zafar Hussain Siddiqui, for alleged manipulation.
The Members commended Chairman Senator Saifullah Abro for his commitment, clear direction, and tireless efforts in pursuing the matter and ensuring transparency and accountability in the project.