Parliamentary Panel Criticizes Sindh Government Over Flood Relief Project Mismanagement

ISLAMABAD: A parliamentary committee has strongly criticized the Sindh government for alleged mismanagement and lack of transparency in solar energy and housing projects initiated for the victims of the 2022 floods. The Senate Standing Committee on Economic Affairs, led by Senator Saifullah Abro, voiced serious concerns during a meeting on Wednesday.

The committee scrutinized the Sindh Solar Energy Project (SSEP), housing initiatives funded by foreign entities, and various infrastructure projects, expressing disapproval over their handling. The panel has demanded the submission of all pertinent documents, records, and clarifications by the subsequent meeting.

The Sindh Solar Energy Project, which aims to provide solar systems to households consuming fewer than 100 electricity units, was a focal point. Officials stated that 23,000 systems have been distributed, with plans to reach 250,000 households.

Concerns Raised Over NGO Involvement and Beneficiary Selection

Committee members questioned the direct hiring of an NGO without a tendering process and the collection of Rs6,000 from households already receiving subsidies under the Benazir Income Support Programme (BISP), only to pass the funds to an NGO. A senator suggested it would be more effective to fully subsidize the cost instead of burdening the most vulnerable users.

It was revealed that households consuming between 0 and 20 units were excluded from the solar scheme due to their inability to pay the Rs6,000 fee. Senators condemned this exclusion and the ambiguous role of the involved NGOs.

Concerns were also raised about the bidding process, where only three out of 18 participating companies were awarded contracts, including one Chinese supplier. Despite the goal to procure 200,000 solar systems, only 23,000 have been distributed to date.

Cost Breakdown and Transparency Issues

The committee chairman requested a comprehensive cost breakdown of the quoted Rs31,083 per solar unit, noting that the base cost was approximately Rs21,000, with an unexplained additional Rs8,000 added by the companies.

The committee expressed alarm over potentially fraudulent beneficiary lists under BISP, with reports of up to 22 names registered from a single household. The Economic Affairs Division was instructed to inform the Sindh chief secretary about the flawed beneficiary lists and ensure that solar systems are delivered only to genuinely deserving individuals.

Senator Abro criticized the lack of transparency, remarking on the project’s promotional activities that exaggerate its impact.

The committee also highlighted that 10 percent of the charges were allocated to NGOs, contrasting with the typical 2 percent consultancy rates in other departmental projects. The committee has requested a breakdown of local customs, taxes, and duties, and has suggested obtaining quotations for solar system items from various cities to ensure fair pricing.

Scrutiny of Housing Projects and Transmission Line Discrepancies

The committee scrutinized housing projects in Sindh funded by foreign aid, questioning the allocation of Rs22 billion for 2.1 million houses, with Rs10,500 per house reportedly directed to NGOs. The committee demanded a 20-year record of five involved NGOs, including their background and agreement copies.

The absence of officials from the Sindh Peoples’ Housing for Flood Affectees (SPHF) and the Sindh Solar Energy Project was also noted with displeasure, as the present officials failed to provide adequate briefings.

The 765kV Dasu-Islamabad Transmission Line Project of NTDC was also discussed, revealing a potential financial discrepancy of Rs1.282 billion. The Director General of the Federal Investigating Agency (FIA) and the NAB chairman were instructed to investigate the matter. The secretary of the Power Division assured that action would be taken against the responsible officials and firms.

ADB Project Irregularities

Concerning the ADB 401B-2022 LoT II A (ACSR Bunting Conductor) project, previous issues regarding the tendering process were revisited. The MD of NESPAK admitted to evaluation errors, resulting in improper procurement and the involvement of senior officers. Allegedly, M/s Newage Cable (Pvt) Ltd Lahore, the second-lowest bidder, was illegally declared the first lowest bidder through a 15 percent domestic preference. It was also revealed that M/s Newage Cable (Pvt) Ltd Lahore had never manufactured ACSR bunting conductors. The committee has demanded all correspondence records related to the tender process and details of testing reports and payments made to M/s Newage Cable (Pvt) Ltd Lahore.