89 vehicles purchased for highway projects: Ministry failed to provide physical verifications: PAC body

National Assembly's special committee of Public Accounts Committee (PAC) made a disturbing revelation: 89 vehicles purchased from the development funds of Ministry of Communications have been missing for almost 15 years.
Auditor General Office informed the PAC that Ministry of Communication failed to provide physical verifications of 89 vehicles purchased against Rs 97, 400,000 from the development funds of a project. The audit observation was based on failure to account for 126 vehicles, which were purchased for the Indus Highway Project, while only 37 project vehicles were related to General Managing Sindh Region. Out of 37 vehicles recommendation for auction of 25 vehicles was shown but record of amount received from auction was not shown.
Moreover, out of remaining 12 vehicles, two vehicles were snatched, four vehicles were auctioned, and the whereabouts of two vehicles were not known while four were deployed with National Highway Authority (NHA) officers, details of which were not available. "The status of remaining 89 vehicles relating to other formations has not been made known", audit observed.
Secretary Ministry of Communication Anwar Ahmed Khan said that a special committee of the Ministry was set up for the complete physical verification of 89 vehicles but could not provide any concrete evidence of the possession of these vehicles. One of the official of Ministry however said that the Ministry was in contact with various stations of NHA to find out the whereabouts of these vehicles but had still not succeeded in getting relevant details of these vehicles.
Giving further details, the official said these vehicles include Toyota Double Cabins, Pajero Jeeps, Potohar Jeeps and other 1300 and 1000 cc vehicles. Chairman Committee Riaz Perzada said it had been brought to his notice that the missing vehicles were utilised in the election campaigns during local bodies' elections which was unauthorised and now no one was aware of their whereabouts.
Another parliament Nadeem Chana accused the official of NHA for not revealing the location of the vehicles averring that he was trying to protect his colleagues. The Committee also criticised the Ministry of Communications over providing excessive rates for constructing Lahore-Gujranwala Overlay Project, highlighted in 1994-95 audit report. Secretary Ministry of Communication said at that time government awarded higher rates to foreign companies without incorporating the incentives announced in the internal procedures of government departments.
Secretary further said that International Financial Institutions like World Bank and Asian Development Bank have set their own standards and specifications in any contracts funded by them. He acknowledged that the rate analysis and comparative analysis of rates of foreign and local contractors shows a wide gap.
Audit objected that the contract of constructing MP29 in Balochistan was awarded to a Greek Company and payment of higher rates resulted in overpayment of Rs 450 million to the contractor. Auditor General Office highlighted higher rates of two out of the listed 27 scheduled items as an example.
In the category of concrete item the CRS was Rs 1872 whereas the foreigners charged Rs 6000. Similarly in second item, CRS was Rs 850 but Greek company was awarded Rs 1400. Audit objected that all the indigenous resources were not mobilised in the contract but higher rates were awarded.