New airport cost Rs68b more than initial estimate

PAC froms panel to fix responsibility for any irregularities

ISLAMABAD: Just six months after it was formally opened by then prime minister Shahid Khaqan Abbasi, the Public Accounts Committee (PAC) set up a sub-committee to fix responsibility for irregularities in the new Islamabad International Airport (IIA), which cost Rs68 billion more than its first estimate.

The sub-panel will also probe and fix responsibility for irregularities in construction of a tower on One Constitution Avenue and other projects.

This was stated in a meeting of the Public Accounts Committee (PAC), which met in the Parliament House on Monday with the committee’s chairman and Leader of the Opposition in the National Assembly Shahbaz Sharif in the chair.

During the meeting, the Auditor General of Pakistan briefed the committee on the audits of large projects including the new airport in the federal capital and the five-star hotel.

The official said that so far, Rs85.55 billion have been spent on the project and work on the project is stated to be 99 per cent complete.

He added that the first project concept-I for the project was drafted in March 2008, when the cost of the project was estimated at Rs37 billion. The PC-I underwent a review in 2014 when the project cost was revised to Rs81 billion.

It underwent a second review in March 2018, when its cost was revised to Rs105 billion. The project took eight years to complete and cost Rs68 billion more than the original estimate.

The auditor general added that based on their audit of the discrepancies in the project, four cases were sent to the National Accountability Bureau (NAB) while the Federal Investigation Agency (FIA) conducted a comprehensive inquiry into the matter. Moreover, the inquiry named every person who was involved in the irregularities.

At this Pakistan Tehreek-e-Insaf (PTI) Senator and Leader of the House in Senate Shibli Faraz asked who were these people?

The PAC chairman responded by directing to provide a copy of the FIA’s report to each member of the PAC in sealed envelopes.

The airport started its operations in May this year after then prime minister from Pakistan Muslim League-Nawaz (PML-N) Shahid Khaqan Abbasi inaugurated it.

OCA

In the briefing relating to the construction of the tower adjacent to the convention centre on One Constitution Avenue, the PAC was told that around 13.45 acres of land had been leased for Rs4.88 billion.

The terms of the lease stipulated the construction of a five-star hotel on the spot. Instead, residential flats were constructed and then sold.

Shahbaz said that a meeting of the committee should be summoned where all the departments involved are called for a briefing.

The PAC chairman then committee formed a six-member sub-committee to examine irregularities in the construction of the tower and the new airport along with those in the Royal Palm Golf Club.

The committee will comprise PTI MNA Fakhar Imam, former prime minister Raja Pervaiz Ashraf, PTI MNA Noor Alam Khan, Muttahida Majlis-e-Amal’s (MMA) Shahida Akhtar Ali, PML-N’s Rana Tanveer Hussain and Muttahida Qaumi Movement’s (MQM-Pakistan) Iqbal Muhammad Ali.

The sub-committee was directed to present its report within 30 days.

The matter of the tower was also in the courts with the Supreme Court this month directing the federal cabinet to decide on a schedule for the owners of the structure to pay the Rs18 billion in dues and fines over 20 years.

Published in The Express Tribune, January 1^st, 2019.