Islamabad
\nThe Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, convened on August 1, 2025, to address serious allegations of irregularities, collusive practices, and potential corruption in the awarding of contracts for the Central Asia Regional Economic Cooperation (CAREC) Tranche-III corridor project by the National Highway Authority (NHA). The committee uncovered significant concerns regarding NXCC\u2019s prior disqualification, arbitration conflicts, payment discrepancies, document manipulation, and collusive bidding practices.
\nThe Chairman Committee pointed out that contract was initially awarded based on auditor sheets without verifying the credentials of M\/s Dynamic Constructors, M\/s Rustam Associates, and M\/s M\/s Ningxia Communications Construction Co., Ltd (NXCC). The Committee maintained that M\/s NXCC is a non-performing firm and is currently involved in litigation related to the Multan-Lodhran project. Surprisingly, NHA proposed Mr. Zafar Hussain Siddiqui as an arbitrator, despite his past association with the first lowest bidder to M\/s Dynamic Constructors and M\/s Rustam Associates Construction Companies.
\nSenator Saifullah Abro presented a money trail with bank statement that clearly indicated Zafar Hussain Siddiqui\u2019s prior affiliation with the JV partners of M\/s NXCC. However, NHA maintained that it had no prior knowledge of the arbitrator\u2019s connection with either party. After thorough discussion, the Chairman Committee recommended that NHA file a petition in the Supreme Court against the award, as the circumstances strongly suggest official malafide intent to clear M\/s NXCC from litigation and non-performance issues ultimately facilitating the award of the ADB CAREC Tranche-III (Rajanpur – DG Khan – DI Khan) Project. The Secretary, M\/o Communications also questioned the concerned NHA officials, asking how this situation was allowed to occur.
\nFurthermore, Senator Saifullah Abro informed the Committee that NHA had submitted incomplete documents. Instead of providing complete records, they submitted only the auditor reports of M\/s Dynamic Constructors and M\/s Rustam Associates. The Chairman Committee also pointed out irregularities and signs of collusive practices in the ADB CAREC Tranche-III (Rajanpur\u2013DG Khan\u2013DI Khan) Project, as reflected in the auditor reports prepared by A.B.M & Co. for M\/s Dynamic Constructors and M\/s Rustam Associates.
\nThe Committee held a detailed discussion on the Gilgit – Shandur Joint Venture Motorway Project. It noted that according to the auditor\u2019s statement, there were several irregularities and signs of collusive practices particularly in NHA projects such as this one. In the Gilgit – Shandur project, M\/s Dynamic Constructors and M\/s Rustam Associates are working in joint venture with M\/s NXCC and NLC serving as the lead partner.
\nSurprisingly, the records showed that contractors received payments exceeding their quoted share which was evident from the payment details. The Committee also noted clear signs of document manipulation, particularly in the routine maintenance works reflected in the auditor sheets and attached comments. In several cases, the payments recorded were higher than the amounts mentioned in the corresponding work orders. The Committee expressed serious concern over the lack of checks and verification within NHA especially for such a large-scale project. It was further pointed out that these firms have only worked with one public sector entity NHA which also happens to be the client in the ADB CAREC Tranche-III (Rajanpur – DG Khan – DI Khan) Project.
\nThe Committee was shocked to learn that contractors had claimed experience and submitted payment documents for work done with FWO, HSSR, and various building and real estate companies. The Committee questioned how NHA accepted this private sector building work as relevant experience even though it does not fall under the category of similar projects. It also recalled that in a previous meeting, NHA had clearly stated that FWO, NLC, and other government sector companies were not eligible to participate in the ADB CAREC Tranche-III (Rajanpur-DG Khan-DI Khan) Project as per ADB instructions. The Committee further raised concerns about how NHA could consider such unverified financial statements.
\nSenator Saifullah Abro, while discussing the Routine Maintenance Account, underscored that the contractor\u2019s alleged demand for this work is far more than the gross payment. He stated that the same pattern could be witnessed in all NHA projects.
\nSenator Saifullah Abro astonishingly revealed one of its kind contracts in the country\u2019s history. He highlighted the \u201cHanzol Hydropower Project,\u201d in which the work order was issued on 7th May 2024 and the work completed on 7th May 2025. However, surprisingly, the bid documents were submitted in September 2024, before the completion of the project, and the said project was made part of the Financial Year 2023-24 in audit reports. The Committee also discussed that verified documents of M\/s NXCC has not been for this project. Although the company was disqualified in CAREC Tranche – II (Shikarpur \u2013 Rajanpur) where in evaluation report of NHA, it is mentioned that M\/s NXCC was disqualified on the basis of fraudulent practices, forged documents and not meeting the criteria in experience, key activities even after the clarification issued by NHA, company was unable to provide the documents in 2021-22. Then suddenly, how that company was qualified for this huge project of ADB CAREC Tranche – III (Rajanpur – DG Khan – DI Khan) Project. The Committee concluded that after the detailed deliberations since four months (04), the huge irregularities and collusive practices have been observed to award this ADB CAREC Tranche – III (Rajanpur – DG Khan – DI Khan) Project to M\/s NXCC, M\/s Dynamic Constructors and M\/s Rustam Associates.
\nAfter detailed deliberations, the committee recommended that the NHA submit verified payments made within the past three years, along with bank statements and cheque copies, FBR returns, income tax deduction certificates from all departments supporting mentioned received payments of all companies and also technical proposal of M\/s NXCC in all LoTs for CAREC Tranche – III within a two-week\u2019s time to the Committee.
\nIn attended were Senators Falak Naz, Syed Waqar Mehdi, Rana Mahmood ul Hassan,Haji Hidayatullah Khan, Kamil Ali Agha, Federal Secretary for Communications Ali Sher Mehsood, Additional Secretary Economic Affairs Division Sabina Qureshi, Chairman, NHA Shehryar Sultan and other senior officials of relevant departments.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, convened on August 1, 2025, to address serious allegations of irregularities, collusive practices, and potential corruption in the awarding of contracts for the Central Asia Regional Economic Cooperation (CAREC) Tranche-III corridor project by the National Highway Authority (NHA). The committee uncovered significant […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-494111","post","type-post","status-publish","format-standard","category-top-news"],"yoast_head":"\n