Audit of NHA Projects Discovers Corruption Worth Billions of Rupees

The Auditor General of Pakistan (AGP) has found corruption worth billions of rupees in a special audit of the National Highway Authority (NHA) projects.

Reportedly, a special audit found strong evidence of corruption in NHA’s Lowari Tunnel and Gwadar-Ratodero projects. The evidence has been forwarded on the advice of federal minister Murad Saeed to Prime Minister’s Inquiry Commission for the appropriate action.

According to the sources, the national exchequer faced a loss of Rs. 3.55 billion because of corruption in the Lowari tunnel project while the Gwadar-Ratodero project caused a loss to the tune of Rs. 420.59 million.

“Corruption was done through undue delays and overpayments to contractors,” said the sources.

The Gwadar-Ratodero project caused losses worth Rs. 425 million due to re-rating of items that did not meet the criteria mentioned in the contract agreement.

Whereas, overpayment due to the difference of revised and original rate to the main contractor incurred a loss of Rs. 38.4 million while that on account of incorrect rates of high-speed diesel were Rs. 7.149 million. Losses because of non-recovery of additional mobilization advance and non-validation of bank guarantee reached Rs. 48.5 million.

Losses owing to unjustified payment and calculation on re-rating items without fixing the basic rates amounted Rs. 23,2 million. Moreover, non-recovery of liquefied damages resulted in a loss of Rs. 111.5 million.

As for the Lowari Tunnel Project, a loss due to non-execution of access roads work in line with the provision of PC-1 was Rs. 3,554.373 million.

An extra payment of price escalation owing to the increased rate of excavation through revised rating was recorded at Rs. 1,148.629 million while an overpayment to the contractor under the increased rate of excavation through re-rating was Rs. 504.12 million.

The undue delay in procurement and execution of operational and complementary buildings caused a burden of Rs. 459,559 million on public expenditure. Unauthorized payment for the acquisition of services by the subsidiary firm led to Rs. 191.535 million in losses while the unfair award of additional work, without any tender, caused Rs. 163.21 million in losses.

Also, non-deduction and recovery of stones from the contractor, according to the provision of the contract, was recorded as Rs. 129.724 million.

Via: Profit


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