Senate panel recommends legal action against 2 directors in FGEHA project

ISLAMABAD: The Senate Functional Committee on Problems of Less Developed Areas has recommended criminal proceedings against the director of finance and project director in the Federal Government Employees Housing Authority (FGEHA) project.

The committee, chaired by Senator Agha Shahzaib Durrani, held a meeting to discuss the inquiry conducted by the Cabinet Division regarding the FGEHA housing project. The Cabinet Division’s report found the ‘3Cs’-Client, Contractor, and Consultant-guilty of collusion.

The Cabinet Division also raised allegations against Nespak, stating that Rs1.3 billion was approved for unsuitable material by the consultant, despite no such work being carried out at the site. However, Nespak officials claimed that the land available for the project was less than the land originally assigned for it. Nespak sought additional time to submit a detailed reply to the allegations leveled by the FGEHA.

Senator Durrani raised concerns over the submission of a ‘fake bank guarantee’ and questioned whether the FGEHA had verified the bank guarantee from both the bank branch and its head office. The FGEHA officials were unable to provide a satisfactory response.

Durrani further questioned how half of the payment was made on the same day the bank guarantee was submitted if it had not been verified by the head office. The officials admitted to criminal practices involving the director of finance and project director but failed to provide a clear explanation.

After detailed deliberations, the committee recommended initiating criminal proceedings against the director of finance, project director and other relevant staff involved in the irregularities.

The meeting also witnessed a blame game between the FGEHA and Nespak, with both parties shifting responsibility for the project’s mismanagement. To determine accountability, the committee directed the FGEHA and NESPAK to submit all communications, a copy of the contract, and other relevant documents within seven days.

The committee expressed displeasure over the absence of the IT ministry secretary and additional secretary and other officials concerned. It warned that the matter would be referred to the Privilege Committee if officials failed to attend for the third time.

Additionally, the committee deferred the briefing of the Evacuee Trust Property Board due to the absence of the secretary in-charge and directed senior officials to ensure their presence at the next meeting.

The meeting was attended by senators Muhammad Aslam Abro, Danesh Kumar, Falak Naz, Hamid Khan and senior officials from relevant departments.