A huge scandal worth almost Rs 1.75 billion has been discovered in the Utility Stores Corporation (USC) where a former minister is allegedly pressuring USC to purchase a building in Islamabad at more than double the price.
And to add fuel to the fire, the federal secretary who was resisting this move has been removed and another secretary who would be retiring in next 25 days has replaced him. Details reveal that USC is looking for a building for its headquarters in Islamabad and two options are under discussion. The USC and the Pak Public Works Department’s engineers have raised questions upon both the buildings but a former powerful minister is pressing the USC to purchase a building situated in sector F-11 of the capital.
According to the documents, the price of building is around 840 million but the former minister is pressing USC to purchase it in Rs1750 million, almost 910 million above the market price. A senior officer of the ministry, who was pressurized to okay the deal, conveyed to the high-ups that he was not ready to go to the jail as signing such a deal would land him in trouble a newspaper reported.
Shafqat Naghmi, ex-federal secretary Ministry of Industries who has now been posted as Secretary CAAD, has written a letter in distress to the Election Commission of Pakistan that he has been removed without completing the tenure while he has been replaced by a secretary who will be retiring just after 25 days.
The secretary has written that the few secretaries who have been removed did not complete one year while a few have only completed even six months in a respective ministry. “Postings appear to have been done to accommodate favourites. Several officers have been given postings where normally, senior officers are posted as they require sufficient experience”, Naghmi’s letter reads.
On the other hand, documents reveal that a vigorous exercise is undergoing in the USC to purchase a building for their headquarters. Documents state that two buildings are under consideration and both of which have been rejected by the USC and Public Works Department. The two buildings under consideration include one in Sector G-6 measuring 2264 sq yard demanding Rs1.85 billion and the other in Sector F-11 Islamabad built on plot measuring 1568 sq yard demanding Rs1.75 billion.
“The bid cost of Rs1750 million is exorbitantly very high. As per CDA prevailing rates based on public auction, the cost of land is Rs388000/- per sq yd for which total cost of land comes to Rs608.384 million, says the PWD document regarding F-11 building. According to the Executive Summary complied by USC the cost of the building in F-11 is Rs248 million.
“In view of foregoing, both the buildings are not feasible both from structural and financial consideration. The building at F-11 is located in posh area, whereas the purpose of Utility Corporation is to facilitate low paid and middle class public, who do not reside in such posh areas. The requirements are laid for bids are also not fulfilled. The Pak PWD has recently constructed a state of the art building namely TUV Secretariat Blocks at Islamabad designed by Nespak, whose final construction cost including all building services as well as HVAC and lifts has come within Rs5000/- sq ft with very rich specifications. It is therefore suggested that USC may not take any decision in haste which may invite Audit objections, rather try to get a suitable piece of land”, PWD documents state.
Mr Shafqat Naghmi when contacted for his comments, said: “I am not sure that objection on the purchase of the said building and letter to the Election Commission of Pakistan were the reasons of my removal from the office of federal secretary industries, but all indications lead to the same reason because the managing director (MD) Utility Stores Corporation (USC) was sacked and his contract was held and cancelled after 24 hours of my removal who too raised hostility on the issue.”
Ex-secretary industries said that he received notification of removal from his office as he refused to approve the summary of the purchase of high-price unsuitable building for USC and the new secretary, soon after taking charge as secretary industries, directly approved the summary of cancellation of contract of the MD, probably, to clear the way.