Dated: November 4, 2003

Mr. Stephen Sedgwick,
Chairperson,
Board Inspection Committee (BIC),
Asian Development Bank

Subject: Demand for transparency and information disclosure pertaining to the GRSC.

After receiving the response from the ADB Management to the request for the inspection of the Chashma Right Bank Irrigation Project (Stage III), the Board Inspection Committee (BIC) asked the inspection requesters if they would like to give their views pertaining to the proposed Grievance Redress and Settlement Committee (GRSC). Subsequently, we (the requesters) filed the second supplement on this issue. We opposed the establishment of the GRSC and termed it inadequate and unrealistic approach towards redress and conflict resolution. It was also well considered opinion of the roster member that 溺anagement Response had not adequately responded to the claims made in the request (either by demonstrating that it has followed its operational policies and procedures, or by outlining specific steps that Management is taking or intend to take to correct any failure to follow these policies and to address any harm caused by such failure).[1] However, BIC did not accept the opinion of both the requesters and the designated roster member and thus supported the establishment of the GRSC. To further prove the complete support to such illegitimate and flawed approach and process of correcting policy compliance and redressing harm, the ADB Board approved the Technical Assistance Grant (RSC C31248-PAK), to support the activities of the GRSC. We considered this decision not only counter-productive to the spirit and process of the inspection but also an effort to weaken the movement and alliances of local communities and inspection requesters. Later on, we experienced a number of manipulation and maneuvering efforts aiming to achieve this process. My complaint pertaining to the miss-reporting of my meeting with the GRSC is on the record.

After receiving and reviewing the Mid Term Report of the GRSC, we have once again rejected the redress measures in the form of the entitlement matrix as proposed by the GRSC. We have also demanded the unconditional and immediate commencement of the inspection process. The demand was fully supported and endorsed by the Chashma Lok Sath (People痴 Tribunal), Pakistan NGO Forum (PNF), and numerous national and international civil society organizations (CSOs). The BIC has not only turned down our demand but even did not bother to explain us the reasons and causes of not accepting the demand. We were just conveyed the brief decision in this regard. This conduct proves complete BIC痴 partiality that is instrumental in totally excluding local communities and the inspection requesters from the decision-making process. We wonder what kind of the inspection will be carried out after such biased, partial and unjust behavior from the BIC even prior to the inspection.

However, the failure of the GRSC was inevitable and it happened at last. This failure is not caused by the non-cooperation and resistance of the inspection requesters and local communities. Rather, this failure was stored in its objectives and composition and determined to surface very soon.

We have recently come to know that the ADB Management terminated the services of Mr. Abdul Wahab Khan, the local consultant for the post of National Land Acquisition Expert in the GRSC. According to available information, Mr. Abdul Wahab did not accept the termination decision and filed a civil petition against Government of Pakistan, Mr. Aqil Mirza (the chairperson of the GRSC), Mr. Saif-ul-Rehman (Chief Engineer of the CRBIP, Wapda), Mr. Takashi Matsuo (ADB Senior Project Specialist). He believed that the ADB violated the agreed term of references (TORs) and thus have not only breached its own Guidelines for the Use of Consultants but also violated the national laws pertaining to the specific matters of contract and services. According to available information, he was entrusted in the agreed and signed ToRs that he would be the chairperson of the GRSC. However, later on, Wapda did not agree and thus Mr. Aqil Mirza was appointed as chairperson. He accepted to perform his duties of
the National Land Acquisition Expert in protest and continued to inform ADB about his disagreement. He also filed a report to the ADB entitled 典he GRSC in the Clutches of Corruption Mafia�. The said report narrates the prevailing corrupt practices in the use of grant money as well as the specific incidents of the violations of the ToRs of the GRSC. We have also come to know that one of the secretarial staff members of the GRSC has also been booked by local police for stealing the record pertaining to the complaints of the affected persons. According to Mr. Abdul Wahab, he was persuaded by Mr. Takashi Matsuo to withdraw from the police case and also his charges of corruption on the GRSC and also on-going corrupt practices in land valuation and compensation process. He refused to do so and was thus terminated by his services in violation of the agreement.

We have always demanded transparency and disclosure of all relevant information pertaining to the project preparation, designing, management and implementation. Sadly, our demand for transparency and information disclosure has never been entertained. Given the grave nature of allegations made by Mr. Abdul Wahab and controversy surrounding the establishment and progress of the GRSC prior to the commencement of the inspection process, we would like to once again ask to ensure transparency, and demand the disclosure of the following documents.

• All documents pertaining to the approval and implementation of the technical assistance grant.
  Internal reports and minutes of the GRSC.
• Record of the complaints filed by the affected persons.
• Report of Mr. Abdul Wahab entitled 敵RSC in the Clutches of Corruption Mafia� filed to ADB on 1st October 2003, and also correspondence pertaining to the matter of the performance of the GRSC and incidents of the corruption in the use of ADB grant money and land compensation process.
• All documents and information pertaining to the hill-torrents management plan and environmental management plan.

I hope that the BIC would positively respond to this call for ensuring transparency and information disclosure that is the most important pre-requisite for ensuring fairness and impartiality in the forthcoming inspection process. Any rejection or effort to delay this matter will not only make the forthcoming inspection process totally non-transparent, partial and unjust but will also create distrust on the claims of ADB about its seriousness in ensuring accountability and transparency.

With best regards,

Mushtaq Gadi

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[1] Advice from the Designated Roster Member. Paragraph 27, P.8