This was claimed by the officials of the Auditor General of Pakistan (AGP) while briefing the participants of the subcommittee of the Public Accounts Committee which met here under the chairmanship of Senator Mushahid Hussian Sayed to review the audit paras of the CDA for the year 2011-12.
According to AGP officials, land in sectors H-16 and I-17 was purchased by the middlemen during the period July 2008 to January 2009. The land was purchased by the middlemen/housing societies from the land owners at the rates of Rs 100,000 and Rs 200,000 per kanal as per record but the land award was announced at the rate of Rs 830,000 per kanal.
This resulted in irregular payment of Rs 575.177 million. The middlemen also managed to get their payments cleared from CDA on a priority basis, the audit observation said. The AGP officials further stated that the payment was made to M/s Bahria Town (Pvt) Ltd for Rs 541.062 million and Usman Nawaz Khokhar for Rs 34.115 million at the rate of Rs 830,000 per kanal. It was further stated that CDA didn't conduct an inquiry to fix responsibility against the persons who made huge payments of land compensation to big investors.
As per 'official' documents, the Director Land CDA failed to implement the subject policy in sectors 1-17 and H-16 which provided opportunity to the investor Usman Khokhar to purchase landholdings from the land owners in these sectors at lower rates in October 2008. In January 2009, the award was announced and investors received compensation from the CDA at higher rates. The audit held that CDA deliberately provided an opportunity for the sale and purchase of land in violation of the cited policy. Therefore, mutation/transfer of land in the name of investors in this case was unauthorised.
Furthermore, the CDA acquired 3,277.17 kanals of land in Mauza Bhadana Kalan: however, it made payment only in respect of 222.13 kanals, which showed that the investors were able to secure the payment, while the original land owners did not receive any payment. This indicates connivance between CDA and investors. The failure to implement the cited policy resulted in monetary favour of Rs 184.12 million to the investors.
Briefing the panel, Secretary Ministry of Capital Administration and Development Division (CADD), Nargis Ghullu stated that departmental accounts committee (DAC) meeting held on March 13, 2017 was not satisfied with the response of the CDA on the issue and directed the civic body to hold a departmental inquiry into the matter to fix responsibility. She further said that DAC also directed that the matter should be investigated by National Accountability Bureau (NAB).
The Member Finance and Member Land of CDA while accepting incompetence of the CDA officials said that CDA has to pay Rs 10 billion to the owners of small land holdings in the above case. The CDA also requested the panel to direct secretary Capital Administration and Development (CADD) to hold an inquiry into the matter instead of involving the NAB. The panel accepted the request of the CDA officials and asked secretary CADD to hold an inquiry into the matter.
Member National Assembly (MNA) Mian Abdul Manan while commenting on the issue said that CDA and private investors have caused a Rs 50 billion loss to national kitty but nobody has the courage to nab the culprits. Manan while appreciating the AGP officials who unearthed this scam said that he was amazed that the officials are still 'alive'.
Taking up the issue of violations of building codes, set rules and regulations of the government by CDA and various contractors, the chairman committee said that there should be no respect for criminals. He said that CDA failed to compel the contractors of Grand Hyatt Hotel and Centaurus to complete construction of five-star hotels in Islamabad, while both the parties have constructed commercial centres on the purchased land.
Mian Abdul Manan and Mushahid Hussian said that the contractors of Grand Hyatt Hotel have collected Rs 7 billion from different parties but violated the CDA rules which was pointed out by audit department before PAC, consequently the PAC took action and the issue was landed in superior court, which as per the findings of the audit department has stopped the builders from constructing while violating the rules.
The audit officials informed the committee that CDA officials and cellular phone operators have caused a loss of Rs 383 million to national kitty by fixing far below the market tariff for mobile towers on the property of CDA. The AGP officials said that CDA was just charging Rs 10,000 per annum for a mobile tower from operators while private land owners are taking Rs 100,000-150,000 for the same purpose. The committee directed the officials to submit all the details regarding the installed mobile towers on CDA land within 12 days before the committee and take appropriate actions against the officials involved.
Copyright Business Recorder, 2017