The Federal Investigation Agency (FIA) has been asked to investigate alleged corruption of over Rs700 million in the implementation of the Clean Drinking Water for All (CDWA) project, Dawn has learnt.

According to findings of a preliminary probe, funds have been embezzled in connivance with officials of the provincial managements of the project, accountant general’s office, federal treasury and the Bank of Punjab.

However, sources said that efforts were already afoot to keep the entire affair under wraps.

When contacted, CDWA’s National Project Director S.A. Khalid confirmed that a formal request had been sent to the FIA for an inquiry into the financial mismanagement of the project, but he refused to talk about the details of the alleged scam.

“The government is about to conduct a special audit of the project which would help fix responsibility in case somebody has siphoned off public money,” Mr Khalid said when repeatedly asked about the nature of the scam.

Although the project faced serious governance issues across the country, the FIA has particularly been asked to look into the project’s implementation in Khyber Pakhtunkhwa (KP), Fata and Gilgit Baltistan (GB) where a contractor had drawn around Rs700 million against fake bank guarantees.

According to top officials of the now devolved ministry of special initiatives, the contractor furnished two bank guarantees of Rs387.2 million each and obtained mobilisation advances amounting to Rs668.44 million from respective departments of KP, Fata and GB.

The contract was for the installation of 1159 water filtration plants awarded to M/s Ideal Hydrotech Systems.

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