• The body refers to acquisition scandals and illegal decisions for NAB, FIA
• The land acquisition delay cited as a systemic problem for more than a decade
• The president of the PAC, Junaid Akbar Khan, affirms the recovery of RS118bn in two months
Islamabad: The Public Accounts Committee (PAC) highlighted on Tuesday the obvious inefficiencies and the massive financial management in national key hydroelectric energy projects.
A PAC meeting, chaired by MNA Junaid Akbar Khan, reviewed the audit objections related to the Ministry of Water Resources. Audit officials expressed concern about the Hydropower Dassu project, where changes in the scope of work had led to significant increases in the cost of the contract. Despite the years of planning, land acquisition and resettlement remain incomplete, which caused strong criticism of the committee members.
“HAIF did not solve, why did the project start?” Questioned President PAC, Mr. Akbar.
The secretary of water resources, Syed Ali Murtaza, responded by changing responsibility for the Khyber Pakhtunkhwa government, stating that land transfer had not yet been executed. “Land liquidation problems have not been completed in the last 13 years,” he said he described the acquisition of land as a systemic problem.
MNA, Malik Amir Dogar, said that an originally estimated project in RS4 billion has now been global at RS36 billion. “This is like throwing dust into the eyes of the nation,” said Mna Sanoullah Khan Masti Khel, while Senator Sibli Faraz requested severe action against responsible officials, stating: “This is not someone’s personal project. It is a shameless example of arrogance and incompetence towards national excess.”
The Committee delivered the matter to the National Responsibility Office (NAB) for its investigation. “We cannot allow such waste of the nation’s money not to be controlled,” said PAC President Akbar.
The Committee also raised questions about the appointment of the retired Lieutenant Sajad Ghani as president of the Water Development Authority and Power (WAPDA). The members expressed concern about the recurring tendency to appoint retired military officers to key civil positions, intentionally asking why such roles seemed reserved only for the generals.
During the Audit of Accounts for the DHPP, for the period from July 2022 to June 2023, the members were informed that the project was approved in 2014, at a cost of RS486 billion. As land acquisition is a re-corner problem, the cost of the complete project has increased to more than RS1.7 billion today.
Neelum-Jhelum project
The Committee also examined the state of the Neelum-Jhelum (NJHPP) hydrovopter project. In response to a consultation by Senator Shibli Faraz, officials confirmed that the project is currently not operational since last May, due to the collapse of a tunnel. The revelation caused greater concern among the members of the Committee regarding the structural and operational integrity of the project.
The General Auditor’s Office informed the Public Accounts Committee that the NJHPP Construction Contract was granted to a joint CGGC-China Machinery Engineering Corporation (CMEC) company. However, the auditors raised serious objections to a decision of the NJHPP Board of Directors to reduce the performance of 10 percent to 5 percent of the value of the contract that an action considers illegal.
According to reports, this unauthorized reduction resulted in a financial relief of more than RS10.9 billion for the contractor.
Team scandal
Audit officials reported that concrete testing equipment used for the Diamer-Bhasha DAM project was bought from the same part responsible for performing the tests. This raised the immediate red flags, with members of PAC demanding an investigation.
When President Akbar interrogated him about why the second -hand machinery was acquired, the authorities claimed that he was obtained from the only global manufacturer. However, the audit authorities insisted that a complete investigation was necessary, citing possible conflicts of interest and calling the issue of “national interest.”
The PAC sent the case to the FIA for greater investigation.
“Each audit report reveals criminal negligence,” said the Khawaz Sheraz Mahmood committee member.
Lack of preparation
The frustration was high during the session when a FIA representative seemed not prepared to inform the committee of ongoing investigation. “Are we here just to have tea?” Quirman of PAC, expressing its disappointment due to the lack of coordination between the institutions of responsibility.
In an informal conversation with journalists after the meeting, Akbar said that all members of the committee were disappointed with the state of affairs. “Each project seems to be worse than the previous one,” he said. “If someone’s performance is poor, they will be summoned to each meeting.”
He stressed that electricity could be made available to RS1.50 per unit if the poor management was addressed, and reiterated that a RS4 billion project that ended at RS36 billion to NAB had been sent.
“In just two months, this committee has recovered RS118 billion,” he added. Regarding Toshakhana’s records, Mr. Akbar mentioned that details had been requested from 1947, but the large volume of data may delay its publication.
Posted in Dawn, April 16, 2025
