PAC reports massive irregularities in NHA

Audit officials informed the committee that Rs 26.4 billion was outstanding towards toll collection.

ISLAMABAD:

The Public Accounts Committee (PAC) on Tuesday flagged massive financial irregularities involving the National Highway Authority (NHA), revealing that Rs26.4 billion worth of tolls remain unpaid while another Rs16 billion could not be recovered from overloaded trucks, leading to major losses to the national exchequer.

The PAC meeting, chaired by Moeen Amir Pirzada, considered audit objections regarding the Ministry of Communications for the financial year 2023-24.

National Highway Authority audits

During the session, the committee held a detailed discussion on 15 audit objections related to the NHL.

The audit officials informed the committee that Rs 26.4 billion was outstanding to the NHA on account of toll tax collection.

Responding to the objection, the NHA secretary said the matter had already been taken up with the National Logistics Cell, Border Works Organization and private contractors, adding that the amount was being used against Public Sector Development Program (PSDP) allocations.

PAC member Bilal Mandokhail questioned why NLC and FWO representatives were not present at the meeting and sought clarification on where accountability would be fixed.

NHA officials responded that relevant institutions had been invited but were unable to attend, leading Mandokhail to point out that the meeting had not been convened on short notice.

PAC member Hina Rabbani Khar said the problem reflected weak enforcement and called it alarming that companies that failed to meet their contractual obligations were being awarded new contracts.

Toll rate

She asks if the contracts of companies that have not paid their dues have been canceled. Committee member Shahida Begum also expressed concern over the continued increase in toll rates.

NHA officials informed the committee that 33 lawyers representing private companies have already approached the courts over the issue. Ordering a speedy resolution, the PAC chairman demanded that the matter be finalized at the earliest.

The committee gave private entrepreneurs 60 days to pay their dues, while public companies were given until June. The president warned that legal action would be taken if payments were not made on time.

During the meeting, another major revelation emerged regarding the losses caused by overloading highways. Audit officials said Rs 16 billion could not be recovered due to overloaded trucks, reportedly resulting in substantial losses to the national exchequer.

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