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A Senate panel has exposed alarming procurement irregularities, collusive bidding, and conflicts of interest in the ongoing multi-billion rupee NHA road project corruption scandal involving foreign-funded infrastructure projects.
In a detailed report, the Senate Standing Committee on Economic Affairs identified significant concerns over prior disqualifications, arbitration conflicts, and document manipulation in contracts awarded by the National Highway Authority (NHA). The committee’s investigation into the NHA road project corruption found that NXCC, one of the contractors, was previously disqualified but continued to secure high-value projects through alleged collusion and payment discrepancies.
Presided over by Senator Saifullah Abro, the panel examined irregularities in the awarding of contracts for the Central Asia Regional Economic Cooperation (CAREC) Tranche-III corridor project. Contracts were reportedly awarded based on unchecked auditor sheets, bypassing proper verification of firms like Dynamic Constructors, Rustam Associates, and NXCC.
The report highlighted that NXCC is a non-performing entity currently entangled in litigation over the Multan-Lodhran project. Despite this, NHA proposed Mr. Zafar Hussain Siddiqui as an arbitrator, even though he had prior affiliations with Dynamic Constructors and Rustam Associates. Senator Abro presented a bank statement that traced financial links between Siddiqui and NXCC’s JV partners, which NHA officials claimed they were unaware of.
Panel Urges Supreme Court Petition on CAREC Tranche-III Award
Given the evident malafide intent, the committee recommended that NHA file a petition in the Supreme Court to challenge the award of the ADB-funded CAREC Tranche-III (Rajanpur-D.G. Khan-D.I. Khan) Project.
Further scrutiny revealed that NHA had submitted incomplete documentation, only providing auditor reports prepared by A.B.M & Co., which showed signs of collusive practices in the CAREC project. The committee also reviewed the Gilgit-Shandur Joint Venture Motorway Project, where similar irregularities and document manipulations were found. JV partners, including Dynamic Constructors, Rustam Associates, NXCC, and NLC, allegedly received payments exceeding their quoted shares.
The Senate panel expressed serious concerns over NHA’s lack of verification processes, especially when contractors had claimed experience with entities like FWO, HSSR, and various real estate companies without proper documentation. A glaring example cited was the Hanzol Hydropower Project, where the work order was dated May 7, 2024, completion was shown on May 7, 2025, but bid documents were submitted in September 2024, contradicting audit reports for the financial year 2023–24.
The committee emphasized that these findings underscore systemic issues in NHA’s procurement processes and called for immediate corrective measures to address the widespread NHA road project corruption.
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