The Senate Standing Committee on Economic Affairs has called for investigations by the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) into alleged irregularities involving Rs. 1.282 billion in the 765kV Dasu-Islamabad Transmission Line Project.

The committee, chaired by Senator Saifullah Abro, reviewed the foreign-funded project and another power sector scheme during a meeting on Monday attended by officials from the Economic Affairs Division, Power Division, National Grid Company, NESPAK and other stakeholders.

The committee said the Rs. 1.282 billion issue relates to taxes and duties in Lot IV of the Dasu-Islamabad project. According to the panel, the bidding documents specifically excluded these taxes and duties from bid evaluation, but they were later included in the price awarded to M/s NWEPDI TBEA JV.

Senators questioned why the additional amount was incorporated into the final award despite the bidding conditions. The committee alleged that officials in the Power Division, National Grid Company and its board did not take effective action to resolve the issue and pointed to a difference between the awarded price and the offer submitted by the second-lowest bidder.

The panel said the alleged irregularity may have caused a substantial loss to the national exchequer and ordered an independent investigation to determine whether procurement laws, bidding requirements or contractual conditions were breached.

The committee also raised concerns about the handling of the matter during Departmental Accounts Committee proceedings, saying officials appearing before the Senate panel did not have complete information about the project’s facts and figures.

Another Rs. 600 Million Procurement Dispute

The Senate committee also examined alleged irregularities in ADB 401B 2022 Lot II-A involving the procurement of ACSR Bunting Conductor.

The panel questioned the bid evaluation and qualification process and alleged that officials from the Power Division, National Grid Company and NESPAK awarded the contract to M/s Newage Cables Pvt. Ltd., Lahore, despite the company being the third-lowest bidder.

The committee described the procurement process as manipulated and estimated the resulting loss to the national exchequer at around Rs. 600 million.

NAB and FIA Asked to Investigate

The committee expressed concern over what it called continued noncompliance by the Economic Affairs Division and Power Division with its recommendations.

It stressed the need for stronger oversight, transparency and accountability in foreign-funded development projects and said independent investigations were necessary to determine responsibility and protect public funds.

The allegations and estimated losses remain subject to investigation and any subsequent findings by the relevant authorities.