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ISLAMABAD:
The Senate Standing Committee on Economic Affairs met on Thursday and reviewed the delays and financial discrepancies in Multan-related development projects, including the use of an Italian grant worth Rs 850 million.
The meeting was chaired by Senator Saifullah Abro.
From the outset, Senator Abro expressed his dissatisfaction with the absence of the Federal Communications Secretary.
Officials of the Ministry of Communications informed the committee that the secretary was in Multan for the inauguration ceremony of the M-5 highway section.
The President also reprimanded Sindh government officials for calling the secretary late at night to confirm the details of the meeting even though the schedule was mentioned in the committee’s notice.
Later, the Sindh government representative apologized.
“Do these tricks in your own province,” Saifullah Abro said, adding, “we are at the Center and such behavior will not be tolerated here.”
The meeting then discussed the status of development funds provided to Multan.
Multan officials informed the committee that the Italian government converted a $200 million loan into a grant in 2010 to support the social sector.
They said Italy had set aside 850 million rupees for the preservation of historic buildings in the city. Several PC-1s were approved under the PPP government, but no progress was made after 2015, the committee was told.
The Economic Affairs Division (EAD) claimed that Rs 170 million was paid to the Italian consultant, while Rs 250 million was spent on various projects, the Multan official said.
He disputed these figures, saying that no more than Rs 50 million appeared to have been used and adding that the EAD had not yet accounted for Rs 450 million.
EAD officials said the project was initially prepared by the Culture Ministry and then handed over to the Housing Ministry before being transferred to the Punjab government.
Senator Abro questioned how a federal project could be transferred to the provincial government without formal approval and why a 20 per cent consultant fee was paid.
National Highway Authority officials said they pay a consultation fee of between 2 and 2.5 percent.
The Punjab government official said the consultation fee had been fixed in the feasibility study.
Senator Waqar Mehdi pressed the EAD to clarify the fate of the remaining funds.
EAD officials said the 430 million rupees were then diverted to Benazir’s income support program.
Mehdi said the Punjab government had claimed that the money had been allocated to Nishtar Hospital.
“Who’s telling the truth?” » asked Senator Mehdi. “How can funds from one project be transferred to another without approval?
