• Panel formed to investigate corruption, ghost tendering, collusive practices in award of contracts
• Joint venture awarded contract despite past disqualification for non-performance
• Senate committee gives NHA two days to provide documents or face contract cancellation
ISLAMABAD: Prime Minister Shehbaz Sharif has suspended eight senior officials of the National Highway Authority (NHA) and formed a high level inquiry committee to probe into glaring irregularities, mala fide intension, ghost tendering, collusive practices and alleged corrupt practices in award of Rs170 billion international road project under the Central Asia Regional Economic Cooperation (CAREC) Tranche-III.
Meanwhile, the Senate Standing Committee on Economic Affairs Division (EAD), in its meeting on Monday, gave a two-day deadline to the NHA to clarify its position through documentary evidence demonstrating transparency in the award of the contract. Failing that, the committee recommended cancellation of the contract and disqualification of the successful joint venture (JV).
The committee questioned how the PM’s inquiry committee would reach a decision, given that the NHA had failed to provide relevant documents to the Senate committee for the past four months.
The case is already under investigation by five parliamentary committees — from both the Senate and the National Assembly — as well as the Public Procurement Regulatory Authority (PPRA). All have identified serious violations of rules and corrupt practices in awarding the four lots of the CAREC Tranche-III project, which is being funded by the Asian Development Bank.
A notification from the PM Office available with Dawn, which was also presented before the standing committee on Monday, revealed that nine NHA officials were suspended. Those suspended include member engineering Asim Amin, member Imtiaz Ahmed Khokhar, Muhammad Talha, director engineering, and four officials of the procurement department. A recently retired member Samiur Rehman is also facing the inquiry.
The document said: “In pursuance of Prime Minister’s Office U.O No. 2(90)/DS(EA-I)/2025 dated 21-08-2025, the prime minister has been pleased to constitute the following committee on the above subject (to review award of contract of CAREC-Tranche-III Project).”
The inquiry committee includes retired federal secretary Muhammad Mushtaq Ahmed (convener); Commerce Division secretary; retired NHA member Mukhtar Ahmed Durrani; retired chief engineer Akbar Ali and the member Planning Commission.
The terms of reference of the inquiry committee are: (a) review NHA’s current practices related to blacklisting contractors; (b) examine whether NHA undertook due diligence during the opening of technical bids of CAREC Tranche-III project; (c) assess whether NHA conducted the grievance redressal in the instant process in a transparent and judicious manner; (d) evaluate all stages in award of project so far to ascertain unnecessary delays, if any; (e) suggest way forward on the current process; (f) review any other matter ancillary to the above.
The document further said the committee shall submit a comprehensive report with actionable recommendations to PM Office within one week. The Ministry of Communications shall act as secretariat to the committee.
Interestingly, the contract for the four lots of CAREC Tranche-III was awarded to a JV of NXCC, Dynamics Constructors, and Rustam Associates, despite this JV being disqualified two years ago by the NHA for failing to complete a previous CAREC project on time.
The parliamentary committees have given ample time to the NHA to provide relevant documents to substantiate the eligibility, financial and technical soundness of the JV firms and no violation to PPRA, and even NHA’s rules, in the award of the contract, but the authority remained failed to provide such documents and bent upon confusing the lawmakers and senior officials of different ministries and PPRA.
CAREC Tranche-I, II, and III projects are in various stages of completion. Tranche-III consists of four road segments: Lot-1 (is 58km road from Rajanpur to Jampur), Lot-2 (64km from Jampur to D.G. Khan), Lot-3 (112km from D.G. Khan toTibbi Qaisrani), and Lot-4 (96km from Tibbi Qaisrani to D.I. Khan).
In the previous meeting of the Senate committee on EAD, held on Aug 2, the NHA was given a final 15-day deadline to come up with all documents required by the committee. However, even after the deadline the NHA could not present the relevant documents in the committee’s meeting on Monday.
NHA Chairman Sheharyar Sultan apprised the committee that responses to certain questions were still awaited from the relevant firms and departments, while some information had already been submitted to the Ministry of Communications.
‘Very serious matter’
Senator Kamil Ali Agha termed the suspension of officers on a large scale a “very serious matter” and demanded clarity. The committee was of the view that the charge sheet against the officers must have been attached with the notifications issued by the Cabinet Division and the PM Office.
Turning to the Shandoor-Gilgit road project (under CAREC Tranche-I), Senator Saifullah Abro said: “You people cannot even defend this project.”
He said the contract had been awarded in Dec 2021 and Feb 2022. He expressed shock that the same firm — Ningxia Communications Construction Company — which had been disqualified from ADB’s CAREC Tranche-II (Shikarpur-Rajanpur) project and Yarik-Zhob project for submitting fake documents and forged seal stamps, was awarded the Shandoor-Gilgit project.
Published in Dawn, August 26th, 2025
