Senate panel questions Rs850m Italian grant use

ISLAMABAD:

The Senate Standing Committee on Economic Affairs met on Thursday and reviewed delays and financial discrepancies in development projects linked to Multan, including the utilisation of an Italian grant worth Rs850 million.

The meeting was chaired by Senator Saifullah Abro.

At the outset, Senator Abro expressed displeasure over the absence of the federal communications secretary.

Ministry of Communications officials informed the committee that the secretary was in Multan for the inauguration ceremony of the M-5 motorway section.

The chairman also reprimanded officers from the Sindh government, criticising them for calling the secretary late at night to confirm meeting details despite the schedule being mentioned in the committee notice.

Later, the Sindh government representative apologised.

"Do these smart tricks in your own province," Saifullah Abro said, adding, "this is Centre and such behaviour will not be tolerated here".

The meeting then turned to the status of development funds provided for Multan.

Officials from Multan briefed the committee that the Italian government had converted a $200 million loan into a grant in 2010 to support the social sector.

They said Italy had earmarked Rs850 million for the preservation of historic buildings in the city. Several PC-1s were approved during the PPP government, but no progress was made after 2015, the committee was told.

The Economic Affairs Division (EAD) claimed that Rs170 million had been paid to the Italian consultant, while Rs250 million had been spent on various projects, the official from Multan said.

He disputed these figures, saying that no more than Rs50 million appeared to have been utilised and adding that the EAD had yet to account for Rs450 million.

EAD officials said the project was initially prepared by the Ministry of Culture and later handed over to the Ministry of Housing before being transferred to the Punjab government.

Senator Abro questioned how a federal project could be shifted to the provincial government without formal approval and why a 20 per cent consultancy fee had been paid.

The National Highway Authority officials said they pay 2–2.5 per cent consultancy fee.

The Punjab government official said consultancy fee was fixed in feasibility study.

Senator Waqar Mehdi pressed the EAD to clarify the fate of the remaining funds.

EAD officials stated that the Rs430 million was later diverted to the Benazir Income Support Programme.

Mehdi said the Punjab government claimed that the money had been allocated to Nishtar Hospital.

"Who is telling the truth?" Senator Mehdi asked. "How can the funds of one project be transferred to another without approval?"