A Senate committee has uncovered alarming evidence of irregularities, document manipulation, and apparent collusive practices among National Highway Authority (NHA) officials in the awarding of contracts for the multi-billion rupee ADB-funded CAREC Tranche-III project, which covers the Rajanpur–DG Khan–DI Khan motorway corridor. Lawmakers found deeply troubling indications of contract rigging, improper payment processes, manipulation of contractor experience records, and issues with project oversight, raising serious concerns about accountability within the NHA.
Chaired by Senator Saifullah Abro, the Standing Committee on Economic Affairs identified several red flags in the Central Asia Regional Economic Cooperation (CAREC) Tranche-III project, including the questionable qualification of M/s Ningxia Communications Construction Co., Ltd (NXCC), which had previously been disqualified from similar projects for alleged non-performance and document forgery. The committee also scrutinized the roles of M/s Dynamic Constructors and M/s Rustam Associates, highlighting that contract awards were made without proper verification of the companies’ credentials.
A key issue during the proceedings was the appointment of Mr. Zafar Hussain Siddiqui as an arbitrator. Evidence presented by the committee, including a detailed money trail and associated bank statements, showed his close ties with the joint venture partners of NXCC. Despite this apparent conflict of interest, NHA officials claimed ignorance of the arbitrator’s connections. The committee responded by recommending that the NHA petition the Supreme Court, arguing that these circumstances suggested a deliberate attempt to clear NXCC from past disqualifications and facilitate their involvement in the current project.
Further investigation revealed that NHA had provided the committee with incomplete records, submitting only partial auditor reports and failing to supply comprehensive documentation related to the bidding and awarding processes. Detailed examination of the auditor’s findings for M/s Dynamic Constructors and M/s Rustam Associates for both the CAREC Tranche-III and the Gilgit-Shandur Motorway Project uncovered patterns of irregular payments, with contractors reportedly receiving funds in excess of their official shares.
The committee also found significant evidence of document manipulation, especially concerning routine maintenance projects, where payments to contractors exceeded those stipulated in official work orders. There was widespread concern regarding the NHA’s reliance on unverified and non-relevant work experience, as some contractors had submitted records of work performed for private sector companies and unrelated entities, which should not have qualified as evidence for major public infrastructure projects.
Another irregularity involved a contract for the Hanzol Hydropower Project, where bid submissions reportedly took place months after the project’s work order had already been issued and completed—a practice which the committee described as unprecedented. Furthermore, senators questioned how NXCC, previously disqualified for fraudulent practices and failing to meet technical criteria in an earlier project phase, was suddenly deemed eligible for the far larger CAREC Tranche-III project.
Following their findings, the committee instructed the NHA to submit within two weeks all relevant and verified records for the past three years. This included details of payments, supporting bank statements, tax documents, and technical proposals from all participating companies, especially M/s NXCC.
The meeting was attended by several senators and senior officials from the Ministry of Communications, Economic Affairs Division, and the NHA. The committee’s ongoing investigation underscores the urgent need for transparency and stronger controls in Pakistan’s public infrastructure sector, prompting questions about how such apparent irregularities were allowed to persist within the NHA’s project management practices.
