The Senate Committee on Problems of Less Developed Areas has uncovered alarming financial irregularities in the Federal Government Employees Housing Authority’s (FGEHA) Park Road project, where Rs. 3 billion was reportedly disbursed despite no construction work being completed.
During a meeting chaired by Senator Agha Shahzeb Durrani, the committee discovered that a contractor had secured project funds using a fake bank guarantee, while the FGEHA Finance Director approved payments without proper verification.
“The situation is deeply concerning,” Senator Durrani told committee members. “Not only were funds released without due diligence, but we’ve also received allegations that the Finance Director later attempted to blackmail the contractor by threatening to expose the fraudulent guarantee.”
Committee members expressed particular concern that despite being transferred from his position, the Finance Director’s name was notably absent from the ministry’s internal inquiry into the matter, raising questions about accountability within the organization.
Senators Hamid Khan and Dinesh Kumar voiced strong criticism of FGEHA’s financial management practices and highlighted the plight of lawyers who invested in the scheme years ago but have yet to receive their promised plots.
“This appears to be a systematic failure of oversight,” Senator Kumar remarked during the proceedings.
The committee has now summoned all relevant records to further investigate the project’s irregularities and determine responsibility for the apparent mismanagement.
In the same session, committee members expressed strong displeasure over the absence of key officials from the Ministry of IT and Telecom during discussions on IT development and the utilization of Universal Service Fund resources.
When ministry representatives explained that the IT Secretary was on an official visit to Azerbaijan and the Additional Secretary was engaged in a meeting at the Prime Minister’s Office, Senator Durrani questioned the ministry’s commitment to parliamentary oversight.
“Is there anyone present who serves as the Principal Accounting Officer?” Senator Durrani asked the attending officials, who included two Grade-21 and one Grade-22 officer. When ministry representatives admitted none held this position, committee members’ frustration visibly increased.
The chairman directed the committee to formally communicate its dissatisfaction through an official letter, instructing that both the Secretary and Additional Secretary must attend the next meeting or face referral to the Privilege Committee.
This investigation comes as the Senate Committee on IT is also preparing to probe Rs. 59 billion in unpaid dues from Long-Distance & International operators, highlighting growing parliamentary scrutiny of financial management across multiple sectors.
