Daily Times

KARACHI: Federal Investigating Agency’s (FIA) joint investigation team (JIT) has asked Sindh government to provide details of development projects from 2014 till date.

FIA has approached Sindh chief secretary (CS) in this regard after conducting an in-depth investigation into the transfer of billions of rupees allocated to development projects into fraudulent bank accounts, according to FIA officials.

Moreover, Sindh CS has asked Sindh Coal Authority (SCA), Private Public Partnership (PPP) Wing, Sindh Agro Coal Mining Company (SACC), Sindh Health Department (SHD, Peoples Primary Health Initiative (PPHI), private firms, non-governmental organisations (NGOs) working under Sindh administration to provide relevant details to FIA’s JIT within 15 days.

FIA officials disclosed that FIA, on October 22, sent a letter bearing the signatures of JIT secretary Nomal Aslam to Sindh CS in which they asked for details. Meanwhile, the JIT constituted by the Supreme Court (SC) is conducting an inquiry into the matter of fraudulent bank accounts.

Details of projects under public private partnership, government funds released to Sindh Engro Coal Mining Company, government funds released to private company PPHI, funds released to private companies and NGOs, copies of audit reports of SECMC and PP projects, copy of audit report of health department are some of the details that will be checked for misappropriation of funds.

SECMC, a joint venture corporation of Sindh government and Engro Corporation, founded in 2009, was tasked with mining and establishing power projects from Block II of Thar coalfield. Government of Sindh owns 51 percent of Company. SECMC projects include construction 660 MW of power plant when completed in 2017. Its flagship project is based on 75:25 debt to equity ratio. The company raised $900 million from Chinese banks, $300 million from a Pakistani banking consortium and remaining $400 million from sponsors for the project.

SECMC is establishing another 600MV plant in partnership with State Power Investment Corporation (SPIC). A sum of $1.6 billion (bn) with $800 million (m) component for open pit mining and $800 m for power plant has been invested in project.

Similarly, details of Thar Coal and Energy Board, established under Chief Executive of Sindh Province with representation from federal and provincial governments as well as Thar Coal Mining Project covering a sovereign guarantee of $700 million provided by government of Pakistan were sought.

Private Company People Primary Health Initiative which began in February 2007 was a Public Private Partnership between Sindh Rural Support Organisation (SRSO) and Sindh government. Presently, management of PPHI and GOS have been asked for details.

Earlier, Auditor General of Pakistan office asked Sindh Health Department to investigate why payments had been made to four nongovernmental organisations (NGOs) on the pretext of salaries. It was revealed in the audit report that Rs 10 billion had been paid in last five years to the four NGOs. In year 2014-15, audit office had asked the Health Department to justify a payment of Rs 2.8 bn to four NGOs which was made through PPHI. The PPHI is currently being given Rs 20 billion by the government, annually. It also runs on funds provided by World Health Organisation (WHO) and other international donors.

Around 106 schools are being re-constructed on better infrastructure standards by USAID funded Sindh Basic Education Programme. The management of all SBEP schools is being outsourced to educational expert organisations from private sector under public private partnership mode.

Details pertaining to Karachi Thatta Dual Carriageway Project (costing Rs 8.8 billion), Sindh Nooriabad Power Project-Gas Fired Power Plant (costing Rs 13 bn), Sir Aga Khan Jhirk Mulla Katiyar Bridge over River Indus (costing Rs 4.5 bn) and National Institute of Child Health were also sought. It is pertinent to mention here that Dr Riaz Memon, former head PPHI had not provided any fund expenditure details to the Audit department.

Published in Daily Times, November 4^th 2018.