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  • Dec 17th, 2018
  • Comments Off on Industrial estate’s land: AGP issues notice to KP industries department
The Auditor General of Pakistan (AGP) has noticed the blockage of public money to the tune of Rs 160.56 million allocated for the acquisition of land for the establishment of industrial estate and un-authorized retention of a fund of Rs83.39 million allocated for the establishment of marble city by Industries Department of Khyber Pakhtunkhwa, said audit report on the accounts of Public Sector Enterprises (PSEs) for the Year 2015-16 of the province.

The Prime Minister of Pakistan during a visit to Peshawar on September, 25, 2004 in a meeting with Sarhad Chamber of Commerce & Industry (SCCI), directed the provincial government to establish an industrial estate with motorway. The directives were conveyed by the Industries Department, vide letter dated September 29, 2004. For the purpose, the management of Sarhad Development Authority (SDA) acquired land measuring 1000 acres on M-1, Peshawar-Islamabad for establishment of industrial estate.

An amount of Rs 147.05 million (the assessed cost of land) in 2009 and subsequently Rs 13.51 million for approach road was paid by the management to the District Officer Revenue (DOR) Nowshera. Award was issued/notified in favour of Sarhad Development Authority (SDA) in October, 2010. PC-1 of the scheme was approved by the Provincial Development Working Party (PDWP) on November 05, 2013, while the administrative approval was accorded vide notification dated December 2013.

PC-II for master planning and designing of the estate was approved at a cost of Rs 15.00 million. It was noticed that the physical possession of land could not be taken by the management because of agitation/interference of the land owners demanding for de-notification of land. The management of Sarhad Development Authority (SDA) could not resolve the issue till November 27, 2014 despite lapse of 11 years. Hence payment of Rs 160.56 million made on account of acquisition of land and approach road remained blocked. The audit was of the view that neither the management pursued the matter vigorously nor considered any alternate option to achieve the very objective assigned by the Prime Minister. The matter was reported to the department on December 18, 2015, but it neither submitted reply nor convened Special Departmental Accounts Committee (SDAC) meeting by the Principal Accounting Officer (PAO) despite repeated requests by audit.

The audit has recommended investigation for non-compliance of Prime Minister's directives resulted into blockage of funds, for such a long period besides fixing responsibility.

The second case noticed by the AGP was the un-authorized retention of development fund to tone of Rs 83.39 million for the establishment of marble city. The scheme was approved by the provincial government in the name of the expansion of Nowshera Industrial Estate on November 07, 2007 and February 24, 2008. The Sarhad Development Authority acquired land measuring 185 acres for the scheme at a cost of Rs 84.16 million.

The Federal Minister for Industries, Production and Special Initiative in a meeting with the Chief Minister KP held on August 10, 2006 desired to establish a marble city in Khyber Pakhtunkhwa. The Board of Directors (BoD) of the Sarhad Development Authority meeting held on April 17, 2008 decided to transfer the entire 185 acres land on ownership basis to Pakistan Stone Development Company (PASDEC) on full payment to facilitate the company for setting up a marble city. Possession of the land was given to PASDEC on ownership basis against recovery of the cost of land, which paid an amount of Rs 83.39 million as being the cost of land to SDA during the period from April 2008 to April 2011. The amount received from PASDEC was deposited by the SDA in bank accounts.

The SDA acquired another piece of land measuring 100 acres for expansion of industrial estate Nowshera. An amount of Rs 143.00 million allocated by the government under annual development programme (ADP) for the year 2012-13 and it was observed that amount of Rs 83.39 million which was actually development grant provided by the Govt of Khyber Pakhtunkhwa for the said scheme, was un-authorizedly retained by the SDA management and later on invested in TDR (Terms Deposit Receipts) etc. The audit was of the view that instead of obtaining further grant from the government, the already available amount released for the same purpose was required to be utilized first. Thus the amount was not utilized for the purpose for which it was released and very purpose of released was lost. The matter was reported to the department on December 10, 2015, but it neither submitted reply nor convened SDAC meeting by PAO despite repeated requests by audit.

The audit has recommended investigation at appropriate level for non-utilization of funds for the purpose it was released and showing inefficiency regarding establishment of marble city with a view to fix responsibility thereof.

Copyright Business Recorder, 2018


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