Transparency International flags Rs15bn irregularities in Sindh solar energy project

Transparency International Pakistan (TIP) has highlighted alleged irregularities worth Rs15 billion ($21 million) in Sindh’s Smart Home and Solar projects, prompting concerns over financial mismanagement.

In a letter addressed to Sindh Chief Minister Murad Ali Shah, TIP pointed out that solar panels were procured at $135 per unit, significantly higher than the market rate of $84 per unit. The watchdog warned that this price discrepancy alone could cause losses of around $21 million.

The letter further stated that the Sindh cabinet had approved the award of the contract to the National Radio Telecommunication Corporation (NRTC-E). However, officials allegedly altered the project unlawfully, replacing NRTC-E with another company, Netcom, raising transparency concerns.

Rejecting the allegations, Sindh Local Government Minister Syed Nasir Hussain Shah defended the government’s procurement process. He argued that critics underestimated the package’s value by excluding components such as fans, bulbs, and batteries, which were part of the distributed solar systems. “Customs-certified documents show that imported fans were included. If these were locally manufactured, why did customs duty apply?” he asked. Shah added that any disputed matters were already under inquiry.

The controversy comes as the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, also slammed the Sindh government earlier this week for mishandling major public welfare projects. Reviewing the Sindh Solar Energy Project and housing schemes for 2022 flood victims, the committee expressed serious concerns and demanded complete transparency. The panel instructed authorities to provide all relevant documents, records, and clarifications related to foreign-funded projects and transmission initiatives.