Rs45 bln embezzlement: Punjab govt orders special audit of LWMC

The provincial government has assured to launch inquiry into the matter.

LAHORE (Dunya News) – Punjab government on Tuesday has directed to conduct special audit of Lahore Waste Management Company (LWMC) after case of embezzlement worth Rs45 billion in the company has surfaced.

While taking notice on revelations made by Dunya News, the provincial government has assured to launch inquiry into the matter for which a resolution has also been submitted.

Earlier, renowned anchorperson and analyst Kamran Shahid revealed that in 2008, then Chief Minister (CM) Shehbaz Sharif constituted Project Management Unit (PMU) aimed at plummeting garbage level to zero by ensuring minimum pollution. The whole program was dubbed as ‘Zero Pollution Zero Garbage’. Despite spending millions on PMU, the project was dropped.

Following this, Shehbaz launched Lahore Waste Management Company (LWMC) and for doing so, rules were either disregarded or revoked while contracts were given on basis of sheer nepotism. Despite grave objections raised by special secretary finance and law, Shehbaz Sharif approved the summary in this regard.

Also Read: LWMC inflicts mammoth loss of Rs45 bln in seven years

In first phase, Shehbaz-led Punjab govt hired services of foreign consultancy firm Ice Tech aimed at disposing garbage and producing electricity by recycling the waste material.

Then in the second phase, Punjab govt clandestinely inked an agreement [worth billions] with LWMC and handed over manpower of City District Government Lahore comprising 10600 employees, 500 vehicles, six customized workshops, 50 waste enclosures and three dumping sites to Turkish conglomerate.

In the third phase, Ice Tech suggested LWMC to outsource another two companies, thus giving birth to two more companies under controversial tenders.

In just seven years, Punjab government had issued whooping Rs70 billion to LWMC thus inflicting a mammoth loss of Rs45 billion to provincial exchequer through controversial contracts on hefty paybacks. In 2007, the daily cost of dumping garbage [in Lahore] was just Rs4 million which augmented to massive Rs40 million in 2018.