NHA tendering & contracting processes: Senate panel exposes alarming malfeasance

Business Recorder

01-07-2025

ISLAMABAD: The Senate Standing Committee on Economic Affairs uncovered alarming instances of fraud, corruption and irregularities worth billions of rupees in the National Highways Authority's tendering and contracting processes.
The committee's meeting, chaired by Saifullah Abro was also attended by senators including Haji Hidayatullah Khan, Syed Waqar Mehdi, Falak Naz, Kamran Murtaza, and Kamil Ali Agha.
Special Secretary Economic Affairs Division (EAD), Additional Secretary Ministry of Energy (Power Division), Mohammed Sherhyar Sultan (Chairman, NHA), MD, PPRA and other officials attended the meeting.
Abro exposed that a Chinese company, terminated by NHA, was disqualified in 2023 after being awarded a contract of Rs6.86 billion for the Lodhran-Multan project in 2021, where only eight per cent work was completed while around Rs2 billion was already paid. Shockingly, this same company has now been illegally awarded a fresh contract worth Rs172 billion for CAREC Tranche-III in 2024. 'How is the company that has been terminated and disqualified by the NHA being given a tender again? This is a case of ghost tendering,' Senator Abro remarked.
Highlighting deliberate attempts to hide facts, Senator Abro revealed, 'Why are the bidding documents not being provided to the Committee despite repeated instructions issued by the Committee? A former NHA member is trying to hide the documents. If this case is sent to the FIA, the entire NHA team will be involved.'
Senator Kamran Murtaza demanded, 'A detailed report on the judicial proceedings must be submitted to the committee,' pointing out how the advisor for the terminated and disqualified company was appointed as arbitrator and ruled against the NHA. Senator Abro emphasised, 'NHA officials should not defend wrongdoings. The Federal Minister for Economic Affairs has the responsibility to take action against corruption worth billions of rupees.'
Senator Kamil Ali Agha strongly condemned the managed and manipulated processes, stating, 'Contractors are given benefits out of greed. This is a national crime because it increases the sense of deprivation in small provinces. This tendering process is completely managed.' The company named as the bidder in the Lodhran-Multan project was not the actual bidder; instead, a local company participated as a joint venture partner in the project. When terminated by NHA, the company stated in its submitted petition to the Islamabad High Court that it was the local company's responsibility to complete the project, as it was only charging three per cent of the project value. The committee observed that NHA should have taken a firm stance in Court, pointing out that company initially declared itself as the lead partner of the project but later claimed to charge only three per cent.
The committee was informed that a commission of 20% - 22% is being paid on World Bank and Asian Development Bank (ADB) projects across most provinces in Pakistan; however, the Asian Development Bank is still unable to enforce its own conditions. Senator Abro stressed, 'The Economic Affairs Division and NHA must take immediate steps to ensure transparency in the utilisation of loans and the completion of projects.'
Further irregularities came to light when the MD, Public Procurement Regulatory Authority (PPRA) revealed that one complaint had been received against the successful bidder of the project. A hearing on the matter was held on 12th June 2025. The PPRA had requested NHA to provide the relevant documents; however, the documents have not yet been submitted by NHA. Furthermore, it was observed that major irregularities highlighted in the complaint were acknowledged; however, NHA officials failed to satisfy the Committee and provide the required documents.
The lowest bidder was also present during the hearing. The procedure was found to be in violation of PPRA rules. Based on the hearing and available evidence, the complainant's petition was accepted, and the tender process for CAREC Tranche-III was suspended due to missing documents, while the NHA did not extend the required cooperation. 'Send this decision to the Economic Affairs Division. EAD may write a letter to the Federal Board of Revenue (FBR) to obtain details of the Arbitrator, as well as the bank account statements of the qualified company for the CAREC Tranche-III project,' Senator Abro directed.
The tender documents still not shared, the Chairman warned, 'The NHA will not provide us with the documents; they will come to us on their own.' He also questioned why the Lodhran-Multan project's cost ballooned from Rs6.86 billion to Rs15 billion after retendering.
The committee directed to immediately suspend the tendering process and submit complete bid evaluation report/bidding document within two days to the committee.
The committee resolved that Economic Affairs Division must strictly review these massive irregularities and ensure accountability. 'The Federal Minister for Economic Affairs must play his role. Although he has never attended these meetings, it is his duty to curb corruption. The EAD should stop funding non-performing departments for future projects. A clause holding them accountable must be included in future contracts,' Senator Abro asserted.
The committee recommended EAD write to the Asian Development Bank (ADB), highlighting the serious lapse committed by the NHA. The company in question, a non-performer in the Rs6.8 billion Lodhran-Multan project, disqualified in the CAREC Tranche-II ADB project, Zhob-Yarik project and failing to provide litigation information - having even been described as a ghost company in its own petition submitted to the Islamabad High Court - was suddenly qualified for CAREC Tranche-III, a project worth Rs172 billion.
Furthermore, the committee also recommended that Power Division write a letter to the company for the verification of the Power of Attorney (PoA) submitted for tender ADB-401B-2022 Lot-IIA.
Regarding the inquiry made by the former Caretaker Federal Minister for Energy (Power Division) concerning tender ADB-401B-2022 Lot-IIA, the committee was informed that the report was unsigned and not available with the Power Division. The committee pointed out that former caretaker minister was the head of the Inquiry Committee and questioned how he had concluded his comments during the Senate Standing Committee on Power meeting held in February 2024. The Committee recommended EAD take action against the officials of the Power Division for providing incorrect information to the Committee in its previous meeting.
Regarding the recovery status of Rs1.282 billion from the company qualified for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), the chairman committee stated that NTDC Board was not authorised to conduct its own inquiry.
The committee recommended EAD to write a letter to the relevant department (Power Division), and that Power Division refer the matter to the Public Accounts Committee (PAC) for recovery of the amount (Rs1.282 billion) from the qualified firm for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), in line with the committee's earlier recommendation. A copy of the letter should also be shared with the committee.
It was further revealed that despite funding, the N-45 Section-l (Chakdara-Timergara) project remains incomplete for several years. Senator Haji Hidayatullah Khan expressed outrage: 'The NHA has demolished all roads in Chitral but started work from the tail, leaving the head and torso of the lion!' He also questioned the excessive toll taxes and fines on national highways.
The Senate Standing Committee on Economic Affairs demanded urgent action to stop such illegalities, ensure transparency in international loans, and protect national resources from misuse.
Copyright Business Recorder, 2025