Senate body seeks criminal action in FGEHA scandal
The Senate Functional Committee on Problems of Less Developed Areas on Monday witnessed a threadbare discussion on the inquiry conducted by the Cabinet Division concerning the Federal Government Employees Housing Authority's (FGEHA) housing project.
The session was chaired by Agha Shahzaib Durrani.
The Cabinet Division, in its report, found the '3Cs' guiltyClient, Contractor, and Consultantand termed it a case of 'Collusion,' said a statement.
The Cabinet Division also laid grey allegations on NESPAK and stated that Rs1.3 billion for unsuitable material was approved by the consultant, when, in fact, no such work was done at the site. However, NESPAK officials claimed that the land available for the project was less than the land assigned for the project. NESPAK sought time to submit a reply to the allegations leveled by the FGEHA.
Senator Agha Shahzaib Durrani raised eyebrows on the 'fake bank guarantee' and asked whether the FGEHA verified the bank guarantee from the bank branch and head office. However, the FGEHA couldn't provide any reply to the query. He further asked, if the FGEHA didn't verify the bank guarantee from the Head office, then how come half of the payment was made on the same day the Bank Guarantee was submitted.
Surprisingly, officials couldn't provide any reply to the query and admitted that criminal practices were involved on behalf of finance director and project director. After detailed deliberations, the committee recommended initiating criminal proceedings against the finance director, project director, and other relevant staff involved in such a crime.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 days ago
- Business Recorder
Govt announces four-day public holidays for Eid-ul-Adha
The federal government has announced a four-day public holiday for Eid-ul-Adha, starting from Friday, June 6, to Monday, June 9, 2025. A notification in this regard was issued by the Cabinet Division on Monday. It is valid for both five-day and six-day working weeks. The decision was approved by Prime Minister Shehbaz Sharif and is in continuation of the Cabinet Division's earlier circular issued in December 2024, which outlined the schedule for public and optional holidays for the year 2025. Eid-ul-Adha, also known as the Festival of Sacrifice, is one of the most significant Islamic holidays celebrated across the country with religious fervour. The occasion commemorates the willingness of Prophet Ibrahim (Abraham) to sacrifice his son in obedience to God.
Business Recorder
30-05-2025
- Business Recorder
Rs500m loss inflicted on national exchequer? Senate body raises questions over role of Nespak, NTDC
ISLAMABAD: The Senate Standing Committee on Economic Affairs raised serious questions over the role of National Engineering Services Pakistan (Pvt) Limited (Nespak) and National Transmission and Dispatch Company (NTDC) in awarding the bid to the third lowest, causing Rs500 million loss to the national exchequer. The committee met with Saifullah Abro in the chair here on Thursday for further discussion on the recommendation made after detailed deliberations in the committee's previous meetings concerning the EAD and its related departments (NTDC projects including 765Kv Dasu-Islamabad Transmission Line project (LoT-I-LoT-IV) upto date progress, expenditure and briefing through MD, Nespak on ADB 401B-2022 LoT-II A(ACSR Bunting Conductor) regarding inquiries reports. The committee's chairman remarked that it was a matter of great embarrassment that Nespak, a national institution responsible for technical evaluations, failed to prevent such a decision. It was Nespak's responsibility to ensure proper verification, because Nespak's role is to scrutinise the document, he stated. Senator Abro highlighted that the 'contract is not awarded to the deserving by which the Rs500 million of the country could have saved.' He noted that 'the company to which the project was awarded Newage, Lahore, lacked the relevant experience, while expressing serious concern that this type of negligence cannot be ignored.' Senator Abro stated that the matter will be pursued through the relevant forums like, the Federal Investigation Agency (FIA), the Public Accounts Committee (PAC), and the National Accountability Bureau (NAB) to ensure that the public funds are recovered. He also recommended that strict action should also be taken against the involved officers. Referring to legal inconsistencies, he questioned 'if Public Procurement Regulatory Authority (PPRA) laws are not applicable in the case of domestic preference, and how can a letter from the Asian Development Bank (ADB) be considered valid?' He recalled that during the previous meeting, three written letters were presented by the caretaker minister, which further raised serious questions regarding the transparency of the process. When the committee sought further details, it was informed that all relevant data from the Engineering Development Board (EDB) had been destroyed in a fire, and only one verified letter was presented before the committee. Senator Kamal Ali Agha inquired whether an inquiry was conducted following the fire incident. The concerned department stated that no inquiry had been carried out. The chairman committee, recommended that a formal inquiry be conducted into the fire incident and that strict action be taken against those found responsible, including officers from the Power Division. During the committee meeting, a discussion was held regarding where the department conducts testing, which institutions are responsible, and where laboratories are located in Pakistan. The department informed the committee that type testing is conducted internationally and not within Pakistan. It was further stated that the type test for the current year, 2024, was conducted in Hungary. The chairman inquired about who the witness to the test? The department told that the witness was not verified. They also stated that, according to a 2023 policy, having a witness was not a mandatory requirement by the consultant. However, after detailed discussion, it was revealed that no such policy had been formulated. The chairman committee strongly remarked that no valid testing had been conducted and an attempt was made to mislead the committee, which amounted to fraud. The chairman asked whether any recovery of the misused funds had been made, to which the department responded that a letter had been written to NTDC regarding the matter. The chairman committee recommended that all the involved companies be blacklisted, the misappropriated funds be recovered, and that the officers involved be terminated from service. Furthermore, he recommended that the recovered amount should be deducted from the salaries of the responsible officers. The committee also inquired about the report and minutes of the 282nd Board meeting, as well as the letter issued by the NTDC Board. It was noted that while the minutes of the committee meeting were dated 24th December 2024, the Board was required to submit its report within 15 days. However, the BOD has submitted after six months. Meanwhile, the committee remarked that the Board itself is violating its own letter and treating the amount of Rs1.28 billion as insignificant. The chairman recommended that strict action be taken against the Board and that the amount be recovered within two weeks. Copyright Business Recorder, 2025
Express Tribune
30-05-2025
- Express Tribune
Rs600m corruption unearthed in Dasu project
The Senate Standing Committee on Economic Affairs on Thursday detected mega corruption in Dasu Hydropower Transmission Line project, calling for a thorough investigation by the relevant authorities, including the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB). The committee which met with its chairman Senator Saifullah Abro in the chair, was informed that that the project contract was awarded on the basis of a letter from the Engineering Development Board (EDB) in 2015, while the National Engineering Services Pakistan (Nespak) presented wrong figures. The chair expressed anger over the alleged corruption in the project, amounted to Rs600 million. "How could the project be given to a company based on a letter," he raised the question. "It is the responsibility of all institutions to investigate it." The committee was informed that Nespak presented wrong figures during the scrutiny of the bidder, and the Nespak managing director confessed to the wrong figures. The committee directed action against the wrong figures presented by Nespak officials. "The negligence of the Power Division [in this issue] should be investigated. This matter should be investigated by NAB and FIA," Abro told the committee. "The officials who gave wrong figures should be terminated," he added.
