By
Sajjad Shaukat
Various forms of
corruption have infected almost every sector of the country in such a way that
it has now become a national problem.
After the massive leak
of the secret documents from Panama-based law firm Mossack Fonseca, the
question of rampant corruption in Pakistan has again come into limelight, as
the disclosed papers include the names of several Pakistanis, including the
Prime Minister Nawaz Sharif and some other politicians who made millions of
dollars of investments in the offshore companies and thus, were involved in tax
evasion, fraud, and money laundering. Leaked documents from the Mossack Fonseca
law firm in Panama had showed the prime minister’s three children–sons, Hassan
and Hussain, and his daughter, Maryam, among other world leaders owned, at
least three offshore holding companies registered in the British Virgin
Islands.
As the government led by
Prime Minister Nawaz Sharif rejected the draft of the Terms of Reference
(TORs), Pakistan Tehreek-e-Insaf (PTI) decided to launch anti-corruption
campaign against the Pakistan Muslim League-Nawaz (PML-N) which will starts on
August 7, this year and will be followed by Pakistan Awami Tehreek (PAT)’s
countrywide campaign against the Model Town tragedy of August 6, as PAT
Chairman Tahirul Qadri announced on July 31, 2016. Earlier, he also criticized
the ruling party’s leaders in relation to corruption.
PTI quarters say protest
rallies will continue until the government accepts the opposition parties’
Terms of Reference (TORs) to probe the Panama Leaks.
Pakistan People’s Party
(PPP) also decided to start a campaign of protest against the ruling party in
connection with the Panama files.
Earlier, all these
opposition parties have also demanded the resignation of the Prime Minister
Nawaz Sharif. They pointed out that Iceland’s Prime Minister Sigmundar Davio
Gunnlaugsson and Ukrainian Prime Minister Arseniy Yatsenyuk resigned in wake of
protests and political pressure inside their countries regarding the
revelations of the Panama Papers. British Prime Minister David Cameron had
faced increasing calls to resign after he admitted that he profited from his
father’s offshore trust. Investigations about allegations of corruption have
started against several politicians and businessmen in various countries.
Nevertheless, corruption
has become a national issue in Pakistan. Besides corruption in other projects,
mega corruption in Golen Gole Hydro Power Project Chitral (GGHP) is of
particular attention.
The project of GGHP to
produce 108 MV electricity was started in 2011 and was supposed to be completed
on January 31, 2015. Due to corrupt and unqualified staff, the project cost
increased from Rs 7.035 to 28 billion and completion delayed till May 2018. The
project will not be completed in this revised cost and time frame.
The progress on various
aspects of the Golen Gole Hydro Power Project Chitral (GGHP) project is
as under: -
|
|
Project
|
Completion Date
|
Progress
|
|
-
|
Construction of Tunnel
|
31 Jan 2015
|
49%
|
|
-
|
Construction of Power House
|
3 Dec 2014
|
49%
|
|
-
|
ESM Works
|
18 Jun 2016
|
15%
|
|
-
|
Installation of
Transmission Lines
from Golen
Gole Chitral to Chukiatan Dir Upper
(113Kms)
|
10 Apr 2016
|
14%
|
|
-
|
Installation of
Transmission Lines
from Chukiatan
Dir Upper to Chakdara Dir Lower (198 Kms)
|
12 Sep 2016
|
0.65%
|
The contract of both
transmission lines has been given to NETRACON company which is owned by an
Ex-WAPDA employee Retd XCN Syed Ali Asghar Shirazi.
The transmission lines
have not been properly designed as per international standard with the help of
software program assuring 50 years life span. The substandard design has caused
a delay and abnormal increase in cost by 38% (Rs 1.343 billion) and 17% (0.25
billion) respectively in both lines.
The electric towers
which were approved in contract are not being installed on ground.
Mr. George (Project
Manager Consultant FICHTNER) is not well qualified and experienced, but is
getting pay package of more than Rs. 5 million. Mr. Usman Hamid Malik being
country representative of FICHTNER consultant and present CEO Pakistan
Industrial Trading Corporation (PITCO) favoured him in his appointment. He
caused more than Rs. 11 billion loss to the project due to his ineligibility.
The contractors are
delaying projects intentionally and claiming this delay as Extension of Time
(EOT) with the help of consultant (Mr. George) and claiming more money rather
than paying fine.
However, several
individuals, namely Mr. Saleem Qureshi Qureshi GM North, WAPDA House Peshawar,
Mr. George, Project Manager Consultant FICHTNER, Mr. Muhammad Shoaib Iqbal
Member Water GGHPP, Mr. Mir Zaman Khan, Syed Ali Asghar Shirazi owner NETRACON,
Retd XCN WAPDA, Mr. Usman Hamid Malik, CEO of PITCO and Country Head FICHTNER
Consultancy, Mr. Sardar Bahadur, Resident Engineer Consultant FICHTNER, Mr.
Masood, Project Manager NETRACON and Mr. Shakeel Durrani, Ex-Chairman WAPDA are
involved in the corruption and delay of the project of
GGHP.
It is notable that
during his last visit to Chitral, Prime Minister Nawaz
Sharif gave clear instructions to WAPDA authorities to complete the
project by Oct 2017. However, even if it is managed it will not sustain
more than 3 months like Nandipur power project.
While, Prime Minister
Nawaz Sharif ignored the facts that the unqualified
staff and contractors are causing loss of more than 20 million per day to the
government.
In this regard, The
WAPDA authorities knew that the design of project is faulty and will not be
completed in given time and further increase the cost, while, Ex-Chairman WAPDA
Mr. Shakeel Durrani remained quiet on this issue.
As a matter of fact, the
progress of the work on project to-date is 40% and its projected cost till
completion may reach from initial Rs 7.035 billion to Rs 34-35 billion.
Nevertheless, various
forms of corruption such as tax-evasion, money laundering, bribery,
illegal obligation, nepotism, illicit capital movement etc. are being practiced
by the individuals, belonging to both private and public sectors. Besides lack
of any appropriate mechanism to control the corruption which is also
largely due to lax enforcement of capital and trade controls by regulatory
bodies also result into corruption.
Owing to avoidance of
paying their fair share of taxes by wealthy individuals and elected politicians
in Pakistan, the burden is shared by the ordinary citizens. Sadly, for now
anyway, not all these people are the role models they should be.
Now, enough tax has been
raised, but not to fully finance improvements in the quality of life for poor
people, as many people in Pakistan live below the poverty line.
Definitely, it cannot be
good for Pakistan that the elite can afford luxury cars and foreign trips, but
cannot afford to pay their real taxes, while concealing their actual assets. In
wake of lack of transparency, the government has also failed in implementing
any mechanism to discourage corruption in Pakistan—the more open and
transparent process will provide less opportunity for malfeasance and abuse.
Nonetheless, mega
corruption in Golen Gole Hydro Power Project Chitral shows that corruption is
being practiced on larger scale in a country like Pakistan which already
depends upon foreign debt which has, rapidly, been increasing.
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