Senate body slams NHA for awarding contracts to ‘blacklisted’ firm

ISLAMABAD/LAHORE: The Sub-Committee of the Senate Standing Committee on Communications, convened by Senator Kamil Ali Agha, has criticised the National Highway Authority (NHA) for awarding contracts to a blacklisted company and for its continued non-cooperation with the parliamentary body.

The sub-committee, reviewing the Terms of Reference (TORs) to probe the Tranche-III Rajanpur-D.G. Khan-D.I. Khan AREC project, and to examine the NXCC arbitration clearance from the Lodhran-Multan project on Thursday, expressed concern over how contracts were granted to a non-performing company.

Lawmakers expressed anger over the absence of the federal minister for communications, the secretary, and the chairman of NHA, terming their non-participation a contempt of parliament. Senator Saifullah Abro remarked that the NHA’s attitude towards the committee was “ridiculous,” asking, “Where are the documents that were assured to be submitted on August 12?” Senator Zamir Hussain Ghumro warned that a contempt of parliament notice could be issued for such behaviour.

Convener Senator Kamil Ali Agha cautioned: “If the recommendations of the committee are not implemented, the matter will be referred to the Privileges Committee.

The prime minister himself has taken notice and suspended nine officers — the matter is extremely serious.”

During the briefing, NHA officials admitted that a letter had been sent to the company seeking financial statements, but the contractors refused to provide the data.

Senator Ghumro asked: “If NHA did not have technical and financial documents, how was the contract awarded in the first place?”Senator Abro, visibly irked, remarked: “This is a matter of the fate of our country. NXCC is mocking the government of Pakistan.”

The committee further revealed that NHA was allegedly putting pressure on committee members.

“It seems the entire institution is involved in this corruption,” said Senator Agha, while Senator

Abro warned: “If the chairman and secretary do not follow the committee’s recommendations, it will be considered that both are involved in corruption.”

The sub-committee also raised concern over alleged illegal tax exemptions granted to companies, including NXCC, working on the Gilgit-Shandur road project.

It recommended that NHA take immediate notice of these exemptions and coordinate with the Federal Board of Revenue (FBR) for investigation.

Expressing dissatisfaction over delays, Senator Abro said: “PPRA’s decision could not be implemented in 24 days. No action has been taken, which shows deliberate negligence.”

Committee members further directed NHA to approach the Asian Development Bank (ADB) regarding restrictive footnotes that limit its authority.Summing up, Senator Kamil Ali Agha emphasised: “If NHA’s hands are clean, then strict action should be taken against the company.

Otherwise, this committee will have no choice but to take its own decision.”The sub-committee concluded that the NXCC bid was fake and formally recommended immediate action against the company.

It held both the NHA secretary and the chairman responsible for the irregularities, reiterating that large contracts were being continuously awarded to the same company, raising serious concern of institutional complicity.

The session was attended by Senator Kamil Ali Agha, Senator Zamir Hussain Ghumro, and Senator Saifullah Abro.

On the other hand, the NXCC in in an official communication to the the Economic Affairs Division (EAD), has sought removal of its its name from the website as a ‘blacklist’ company which it terms as a “factually inaccurate and damaging” to the international acclaimed Chinese firm working globally.

The NXCC in an official communication to the EAD stated that the company has never blacklisted in Pakistan or abroad, including the Lodhran–Multan project.

The Chinese firm further stated that the impression of blacklisting stems from misinformation, stressing that judicial findings and arbitration proceedings have already declared the termination of the Lodhran–Multan contract unlawful and unjustified.

NXCC pointed to the legal process initiated in 2023, where the Islamabad High Court referred the dispute to arbitration.

The sole arbitrator issued an award on November 19, 2024, which the court subsequently made the Rule of Court on May 29, 2025. NXCC stated it has fully accepted the award. The NXCC is now waiting for the resumption of the Lodhran–Multan project for which it had already also approached to the National Highway Authority (NHA).

The company noted that the prolonged suspension of the project has inflicted “substantial commercial, reputational, and developmental losses to all stakeholders. The NXCC reiterated its readiness to mobilize and recommence works immediately upon receiving the recommencement directive under Clause 41 of the contract.

While assuring cooperation, the company cautioned that any discriminatory or unequal treatment of bidders would undermine transparency and could discourage fair competition.

“We urge NHA to carefully reconsider whether such documents should be subject to review,” NXCC wrote, while also reserving the right to pursue legal remedies if fairness is compromised.