NAB seeks closure of M-1 scandal case before the Accountability Court

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This is a U-turn move, as NAB itself had initiated corruption litigation against officials of NHA.

The National Accountability Bureau (NAB) while moving against its own move, with regards to the Rs 7.9 billion hefty loss to national exchequer during the construction of Islamabad-Peshawar Motorway (M-1) has asked Accountability Court to dismiss the corruption reference against the official of National Highway Authority (NHA) allegedly involved in the scandal.

Copies of official documents disclosed to Pakistan Today reflected the corruption during award, revival and execution of contract for Islamabad-Peshawar Motorway (M-1). The project Islamabad-Peshawar Motorway (M-1) was awarded to Ms Bayinder on 18th March, 1993 by National Highway Council at a contract price of Rs 16.82 billion for a six lane and 188 kilometer long controlled access facility.

Additionally, this construction contract for M-1 was given during the rule of Incumbent ruling elite of Muslim League-Nawaz in the center. However, Pakistan People’s Party (PPP) government in 1994 had declared that award of the contract to a Turkish company was not transparent. Later, the contract was cancelled in February, 1994 and NHA paid US $ 10.72 million as compensation through arbitration.

Surprisingly, Muslim League-Nawaz government in its second term had revived the M-1 project in July 1997, at a revised construction cost of Rs 21.8bn, which after scaling down of the project (4-lanes and a 154km length) decreased to Rs 18.6bln. The revision in cost and design had caused heavy loss to the national exchequer. Similarly, advance payments were made to a Turkish company by NHA, while speed of work at site remained very slow.

“NHA spent Rs 15 billion but the physical progress up till contractor’s expulsion in April, 2001 was only about 29 per cent whereas the value of work done was only Rs 4.6 billion,” said official documents.

Taking cognizance of the matter, former chairman NHA Major General (Retd) Tariq Bajwa had once again cancelled the contract owing to slow speed of work and forwarded the matter of Rs 7.9bn loss to national kitty in front of NAB for investigation.

Consequently, NAB launched inquiry/investigation on the specific written request made by chairman NHA on 10-09-2001. So far, NAB has investigated this scandal three times as several of its investigation officers conducted inquiry/investigation and filed reference in the Accountability Court.

Sources in the bureau on condition of anonymity said that chairman NAB has strictly advised to keep the details of corruption and corrupt practices in the award, revival and execution of contract for Islamabad-Peshawar Motorway (M-1), a secret from the media. The NAB chairman has also advised to make efforts to get the case closed in the court.

According to NAB, “It has been transpired that administrative irregularities caused this loss, which has also been recovered and the same has been verified by NHA, therefore, it is recommended that the investigation may be closed after discussion in RBM, pursuant to the recovery of pecuniary losses amounting to Rs 9.7 billion from litigation in Turkey.”

A spokesman of NAB was contacted to get the stance of NAB but he did not bother to respond to the query of this scribe, as usual.