ISLAMABAD: The Public Accounts Committee (PAC) on Thursday directed the Cabinet Division to submit a comprehensive report into alleged financial and technical irregularities involving the National Engineering Services Pakistan (Nespak), amounting to billions of rupees.
The committee ordered multiple inquiries into various projects handled by Nespak, including the Rs43 billion losses linked to faulty consultancy services for the Neelum Jhelum Hydropower Project.
During the PAC meeting, chaired by Syed Naveed Qamar, Secretary Cabinet Division Kamran Ali Afzal informed members that a high-level inquiry into the Neelum Jhelum project was already underway and assured that complete details would be presented in the final report.
The Neelum Jhelum power plant has remained shut since July 2022 following the collapse of its tunnel. Although operations briefly resumed, the project suffered another collapse in May 2024, halting power generation once again. Audit findings estimated losses of Rs42.9bn due to poor workmanship and consultancy services associated with the project. Nespak remained involved throughout the project, from design to construction supervision.
The PAC also reviewed audit objections related to alleged fraudulent verification of work in the Federal Government Employees Housing Authority’s infrastructure development project at Park Road, Islamabad. According to the Auditor General’s office, incorrect certification by a Nespak representative resulted in wrongful payments worth Rs1.4bn to contractors.
The audit report stated that fake bank guarantees were submitted, while Nespak allegedly verified interim payment certificates (IPC1, IPC2 and IPC3), leading to the release of mobilisation advances and payments despite irregularities.
Responding to the concerns, the Cabinet Secretary said responsibility in the matter was being determined.
In another case, audit officials highlighted heavy financial losses incurred by Nespak’s Qatar-based subsidiary. The non-viable operations of Nespak-WLL Qatar reportedly caused losses of Rs874.4 million, along with non-recovery of Rs664m.
Audit documents revealed that the subsidiary, established in 2009, had accumulated continuous losses reaching Rs1.8bn by the financial year 2022-23.
Story by Jamal Shahid
