Senate panel to seek PM, NAB and FIA action over foreign-funded power projects

ISLAMABAD: The Senate Standing Committee on Economic Affairs Division on Thursday decided to send its findings on alleged irregularities and corruption in foreign-funded power sector projects to the prime minister and to approach the National Accountability Bureau and the Federal Investigation Agency directly for detailed inquiries.

The decision was taken unanimously at a meeting chaired by Senator Saifullah Abro after the Economic Affairs Division said it could not itself order an investigation into projects handled by another ministry. The committee also directed the EAD to submit within three days all correspondence exchanged with the ministry concerned, along with an implementation report, so that the material could be forwarded to the prime minister, the Public Accounts Committee, NAB and the FIA.

Dispute over EAD letter

The meeting saw sharp criticism from senators over a letter written by an EAD section officer stating that the matter did not fall within the committee’s jurisdiction. Senator Kamran Murtaza said the panel should first determine whether it had the authority to proceed, adding that there would be little purpose in continuing if it lacked jurisdiction.

Senator Kamil Ali Agha described the letter as an attempt to create confusion and shift attention away from what he said were serious irregularities and alleged corruption in several foreign-funded projects. He said the communication suggested an adversarial attitude towards parliamentary oversight and could weaken the committee’s efforts to ensure transparency, accountability and proper use of foreign loans and assistance. He also argued that the Senate had a constitutional role in overseeing state institutions.

Chairman Abro asked whether EAD Secretary Humair Karim stood by the contents of the letter, and the secretary accepted responsibility for it. However, he said the communication did not amount to disrespect for parliament and maintained that Senate recommendations had always been implemented.

EAD cites procedural limits

According to the EAD secretary, the committee had earlier asked his division to write to NAB and the FIA regarding issues linked to the Power Division, but the EAD could not directly send such a letter against another ministry. He said the division had therefore sought legal advice from the Ministry of Law to determine the procedure available to it under the Rules of Business. He also acknowledged that the letter could have been drafted more carefully and with greater sensitivity.

Senator Murtaza said that if the secretary endorsed the letter’s contents, it implied senators had gone beyond their authority. He said the committee had no objection to the ministry seeking legal advice and would respect that opinion once received, while also appreciating the secretary for taking responsibility. Murtaza further said that foreign-funded borrowing was largely spent on projects in Punjab, while the burden of cost overruns and corruption was ultimately borne by provinces including Balochistan and Khyber Pakhtunkhwa. He alleged that project designs were often changed after loan approval, officials responsible were not held accountable, and contract prices were initially kept low so that costs could later be raised.

Senator Dilawar Khan said the committee had already identified major irregularities in projects financed through foreign loans. He said the EAD’s role was to facilitate external borrowing, while implementation lay with the executing ministries. He questioned why the division found it necessary to seek legal opinion instead of acting on the committee’s recommendations, and argued that the ministry’s mandate under the Rules of Business, 1973, was administrative in nature and did not require legal interpretation for carrying out Senate committee directives.

Committee to write directly to investigators

Chairman Abro said previous meetings attended by EAD officials had already established alleged corruption in foreign-funded projects. He recalled that the committee had instructed the division to refer projects carrying corruption allegations to NAB and the FIA for further investigation. He said the Senate committee itself had the authority to refer matters directly to the PAC, NAB and the FIA, but had initially asked the EAD to act in order to reinforce its oversight role over foreign-funded projects.

Abro also said the prime minister had suspended nine senior officers and four members of the National Highway Authority on the basis of the committee’s findings without seeking prior legal opinion from the Ministry of Law and Justice. He warned that the committee would express regret in its communication to the PAC, NAB and FIA and would specifically note what he described as non-cooperation by both the EAD and the Power Division. He directed senior EAD management to ensure accountability within the institution and to instruct officials to fully cooperate with parliamentary committees instead of creating procedural hurdles.

Senators Mahmoodul Hassan, Syed Waqar Mehdi, Kamran Murtaza, Kamil Ali Agha, Haji Hidayatullah Khan and Ahmed Khan proposed that the committee’s investigation report and recommendations be sent to the prime minister, PAC, NAB and FIA for necessary action. The committee then unanimously decided to write directly to NAB and the FIA, seeking inquiries into two Power Division projects as well as other projects.