ISLAMABAD: Showing complete dissatisfaction over the briefing given by the Ministry of Finance on the on release of $68 million as per agreement with Export-Import (EXIM) Bank China, the Senate Standing Committee on Finance and Revenue on Monday sought a complete report onthe subject which had caused loss of millions of dollars to the national kitty.
The members were of the view that EXIM Bank of China blackmailed Pakistani government on the issue pertaining to Neelum-Jhelum Hydro Power Project. The Finance Committee met here with Chairperson Nasreen Jalil in the chair to discuss the release of release of funds of $ 68 million as per agreement with Export-Import (EXIM) Bank China which was a part of total allocated amount of $ 124 million signed in 2011.
Secretary Finance Dr Waqar Masood along with other higher officials gave a detailed briefing to the committee on the matter. However, committee remained unsatisfied and sought detailed report into the matter. The committee was told that Finance Ministry entered in an agreement namely Islamabad Safe City Project with EXIM Bank of China and Chinese Bank released a loan of RDNS 435 million at 2% annual interest rate. An interest of RDNS 24 has piled by September 21, 2014 against the released amount.
Taking part in the debate, Chairman Senate Interior Committee Senator Talha Mehmood apprised the committee that as per his information, there work on Safe City Islamabad Project began in 2013 and it had to be completed in one year. He said that project was signed under the pressure of EXIM Bank of China which was also funding the Neelum-Jhelum Neelum-Jhelum Hydropower Project.
He observed that he had sensed corruption of billions of rupees in the said project because security cameras available at cheaper price in the market had been procured at the rate of millions of rupees. Moreover, only one company, instead of three companies had taken part in the bidding process” he added demanding of the Finance Ministry to keep the committee and other concerned departments apprised about the latest development and progress on the project at least twice a year.
He added that his committee had taken a notice of some financial irregularities by Chinese construction firm working at the Neelum-Jhelum Hydropower Project, however, the Chinese government under the pressure of EXIM Bank blackmailed the committee by asserting pressure through government.
“Then, the interior committee was forced to take a lenient view of the said irregularities” he observed. Other members of the committee also endorsed his views. At this the committee sought detailed report on the implementation of the said project from the Finance Ministry without giving a timeline in this regard.
It is pertinent to note here that in September 2012, National Accountability Bureau (NAB), in compliance with the order of the Supreme Court (SC), initiated an inquiry into the award of the contract of Islamabad Safe City Project to a selected company by those occupying high-profile offices but the project was declared illegal by the apex court because it was being given at triple rates that too without following the laws.
The SC while striking down the project declared that the laws were flouted, misused and ‘law was pleaded to defeat the law’ to award the contract to a pre-selected company. In March last year, Director General (DG) of NAB Rawalpindi Region Shahzad Anwar Bhatti forwarded a report, with his remarks, to the Compliant Verification Department of the bureau regarding misappropriations in the Safe City Project.
