BeNewz
Related Articles
The Interior Ministry will launch an inquiry into its own officials for pursuing unnecessary litigation against Chinese tech giant M/s Huawei, withholding $6.17 million (Rs 1.72 billion) owed under the Safe City Project, reliable sources disclosed on Thursday.
The Ministry’s decision to file an Intra Court Appeal (ICA) against Huawei was made despite the company’s pending payment for project execution. This approach, contrary to the advice of the Law Ministry, resulted in delays and additional litigation. After the Islamabad High Court (IHC) dismissed the ICA, the Interior Ministry sought the Economic Coordination Committee’s (ECC) intervention to resolve the issue amicably, as directed by the IHC.
The ECC approved the payment of Rs 1.72 billion to Huawei but also instructed the Interior Ministry to investigate why the ICA was pursued and to submit a detailed report on the matter.
The Safe City Project, initiated under a $124.719 million agreement between the Interior Ministry and Huawei on December 29, 2009, was largely funded by a concessional loan of $118.549 million from China’s Exim Bank. However, $6.17 million remained unpaid due to the loan’s expiry before the project’s completion.
In October 2023, Huawei filed a writ petition in the IHC, which ruled that the Interior Ministry had unjustifiably delayed payment. The court ordered the Ministry to settle the liability with assistance from the Finance and Economic Affairs Divisions. Following the dismissal of its ICA in December 2023, the Ministry explored extending the loan validity through Exim Bank, but the request was denied.
The Finance Division, citing an ECNEC decision from April 2023, advised the Ministry to follow proper procedures to clear liabilities. After review by the Central Development Working Party (CDWP), the Ministry presented a summary to the ECC, seeking approval for a Technical Supplementary Grant (TSG) of Rs 1.72 billion.
During deliberations, the ECC criticized the prolonged delay and questioned the rationale behind challenging the court’s order. The committee approved the TSG, directing the Interior Ministry to clarify its legal processes, ensure compliance with court orders, and resolve the matter with Huawei without further delays.
