ISLAMABAD: Chairman of the Public Accounts Committee (PAC) of the National Assembly, Syed Khursheed Shah of the PPP, ‘settled’ rather hastily two audit objections on Tuesday about a power project, leading to criticism that he was “going soft on irregularities committed during the 2008-13 tenure of PPP-led government”.
At a PAC meeting, federal auditors came up with an objection which involved financial anomaly of Rs5.17 billion in the tendering process for civil works of the Neelum-Jhelum hydropower project.
According to the audit reports for 2010-11, the original discounted tender price for the works was quoted at Rs87.42bn. However, the price was later ‘corrected’ and increased to Rs92.6bn.
The PAC met here in the Parliament House and discussed audit reports for 2010-11 about affairs of the Water and Power Development Authority (Wapda) and National Transmission and Dispatch Company.
As per the audit department’s objections put forward by one of its directors-general at the meeting, the price for each component of the civil works was quoted only in figures, not in words, during the bidding process.
Such ‘dichotomy’ in the bidding process involved serious transparency issues which should be looked into, said the official. The difference of over Rs5bn in the prices quoted also made it necessary for the PAC to review the tendering process.
The original bid documents were not furnished to the auditors, the official added.
Water and Power Secretary Saifullah Chattha and Wapda Chairman Syed Raghib Abbas defended the corrected price. Mr Chattha said the amounts were quoted in both figures and words.
However, the director-general insisted that by not providing the required documents to the auditors, the water and power ministry and Wapda had violated clauses 14(c)(2) and (3) of the Auditor General’s Functions (Powers, and Terms and Condition of Services) Ordinance, 2001.
After hearing the arguments of the two sides, Mr Shah refused to delve into the issue deeper and proceeded to “settle the para” immediately.
At this, Sheikh Rohail Asghar of the PML-N couldn’t resist noticing what he said the PAC chairman’s “soft corner” for the Wapda chairman.
In response, Mr Shah said he didn’t want any further delays in the completion of the 969MW hydropower project.
Talking to Dawn on condition of anonymity, an official of the audit department said the serious objection should have been looked into by the PAC.
“The committee should have at least asked the Wapda officials to get the corrected bid documents verified by the audit officials. An outright settlement of the said audit para was really surprising for us,” he added.
The auditors raised another objection about the same project, regarding purchase of 87 “luxury vehicles” such as Toyota Saloon and Toyota Land Cruiser.
Although a meeting of the Executive Committee of the National Economic Council, during the rule of the PPP-led government, had approved a revised PC-I incorporating the purchase of these vehicles, the audit officials said their purchase should have been part of the original PC-I.
In this case too, Mr Shah settled the para. However, he sought the record of the vehicles.
The original cost of the Neelum-Jhelum project was estimated at Rs84bn in early 2000. At present its cost stands at Rs333bn.
