Senate committee seeks probe into Rs1.282bn irregularities in Dasu-Islamabad Transmission Line

ISLAMABAD: The Senate Standing Committee on Economic Affairs on Monday wrote to the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA), seeking an investigation into alleged irregularities involving Rs1.282 billion in the 765kV Dasu-Islamabad Transmission Line Project.

The Senate Standing Committee on Economic Affairs met under the chairmanship of Senator Saifullah Abro.

The committee recommended an investigation and appropriate action regarding what it described as serious irregularities in the 765kV Dasu-Islamabad Transmission Line Project (Lot-IV) and ADB-401B-2022 Lot II-A (ACSR Bunting Conductor).

The committee examined the two foreign-funded power sector projects and, following extensive deliberations with representatives of the Economic Affairs Division, Power Division, National Grid Company (NGC), NESPAK and other relevant stakeholders, expressed serious concerns over transparency, accountability, compliance with procurement requirements and the protection of public funds.

According to the committee’s letter, in the case of the 765kV Dasu-Islamabad Transmission Line Project (Lot-IV), an amount of Rs1.282 billion, reportedly relating to taxes and duties that were expressly excluded from bid evaluation, was subsequently incorporated into the price awarded to M/s NWEPDI-TBEA (JV).

The committee noted that the bidding documents explicitly stated that these taxes and duties would not form part of the bid evaluation. It alleged that officials of the Power Division, the Board of Directors and the National Grid Company were reluctant to rectify this irregularity and took advantage of difference from the price of second lowest bidder.

The committee said the alleged irregularity resulted in a significant financial loss to the national exchequer.

It further observed that attempts were allegedly made to conceal the matter during Departmental Accounts Committee (DAC) proceedings. However, when DAC officials appeared before the Senate committee, they were found to be unaware of the actual facts and figures relating to the project, as reflected in the annexure attached to the committee’s letter.

The committee said the matter warranted an independent investigation to determine whether any laws, rules, bidding conditions or contractual provisions had been violated and whether any loss had been caused to the national exchequer.

It also expressed concern over the circumstances surrounding the award and execution of the contract and the failure of the concerned authorities to take effective corrective action despite repeated recommendations.

The committee also identified significant concerns in ADB-401B-2022 Lot II-A (ACSR Bunting Conductor) relating to bid evaluation, compliance with qualification requirements, procurement decision-making and the award of the contract.

During the proceedings, members raised questions regarding the transparency and propriety of the procurement process and its potential financial implications.

The committee further noted admissions and observations made before it regarding alleged irregularities in the procurement process and recommended that responsibility be determined in accordance with the law.

According to the committee, officials of the Power Division, NGC (formerly NTDC) and NESPAK awarded the contract to the third-lowest bidder, M/s Newage Cables (Pvt.) Ltd., Lahore, through what the committee described as a manipulated procurement process.

The committee estimated that the process resulted in a loss of approximately Rs600 million to the national exchequer.

The committee expressed serious dissatisfaction over what it termed continued non-compliance by the Economic Affairs Division and Power Division with its recommendations on the matter.

The committee also expressed concern over systemic weaknesses in oversight, transparency and accountability mechanisms governing foreign-funded development projects.

It said addressing these weaknesses was essential to protecting public resources, safeguarding the integrity of Pakistan’s power sector and maintaining the confidence of international development partners.