Senate Housing Society scam – Audit unveils irregularities worth over Rs 50 million

ISLAMABAD – A special audit has identified irregularities worth Rs 51,504,835 by the ex-managing committee in connivance with the developer in the development expenditure and purchase of land of the Senate (Sectt) Employees Cooperative Housing Society Islamabad. According to the audit report, a copy of which is available with Pakistan Today, the development contractor M/s Raja Ishtiaq Associates was found involved in the financial irregularities worth of Rs 50,732,217. According to the audit, an amount of Rs 7,72,618 was also recoverable from another landlord. The new managing committee of the society had asked in November 2010 to the Circle Registrar Cooperative Societies ICT to hold special audit of the accounts of the society after complaints of embezzlement.
The audit has proposed to affect recovery an amount of Rs 50,732,217 from M/s Raja Ishtiaq Associates under Section 50-A of Cooperative Societies Act 1925 along with the accumulative mark up per prevailing interest rate in banks. It further said that an amount of Rs 7,72,618 was also recoverable from another landlord. The audit has pointed out many irregularities and held that the ex-managing committee is equally liable for the said loss suffered by the members. The Circle Registrar has advised the managing committee of the society to take necessary action against the contractor M/s Raja Ishtiaq Associates and ex-managing committee as per recommendations of the auditor in accordance with the law.
When contacted, President Senate (Sectt) Employees Cooperative Housing Society Dildar Muhammad Fani told Pakistan Today that the new managing committee has initiated process for the recovery of said amount.
He said that some two weeks back, he had written separate letters to the previous managing committee chairman, Raja Kamal, the contractor M/s Raja Ishtiaq Associates and the landlord for the recovery of the said amount. However, he added, neither of them had responded. He said court notices will be sent to them if they do not respond. It is to mention here that there are around 400 member MPs of the society have suffered a lot because of continued financial irregularities by the ex-managing committees and lack of development work on the site.