Probe ordered against CDA officers over Rs 33m loss

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In a belated action, Capital Development Authority (CDA) Chairman Maroof Afzal has ordered an inquiry against four CDA officers on the charges of misconduct and negligence.

The officers had concealed official information to allegedly facilitate a contractor in enchasing a bank guarantee despite the latter failing to complete construction work in stipulated time, it has been learnt reliably.

The officers, including DDG coordination (the then director law), Habib-ur-Rehman, DDG Law (the then DD Law), Najma Azhar, Director Law (the then DD Law), Abdul Baqi, and Deputy Director Law (the then AD Law), Arif Masood, have been charged for misconduct, inefficiency and negligence under Article 8.03 of CDA Employees (Services) Regulation, 1992, which may involve the imposition of a penalty of dismissal from services as the Directorate of CDA allegedly failed to handle a case in proper procedure and showed extreme carelessness thus causing huge loss to CDA.

Interestingly, Habib-ur-Rehman was recently retired from service and Abdul Baqi is on leave prior to retirement.

The sources said that CDA Chairman Maroof Afzal has appointed Director General (Water management) CDA, Shahid Mehmood, as chairmen of the inquiry committee, which will conduct an inquiry proceeding on a daily basis and will submit its report to the authorised officer within 15 days.

The accused CDA officers have the opportunity to submit their written statement in their defence to the inquiry officers within seven days.

Amer Ali Ahmad, Member Administration CDA, has issued charge sheet along with statement of allegation to all the accused officers of CDA under Article 8.03 of CDA Employees (Service) Regulation, 1992.

The statement of allegation issued to all the accused officers reads: The work for contraction of IJ Principal Road from Pirwadhai intersection to Faizabad Interchange was awarded to M/S Sardar Muhammad Ashraf D Baloch (Pvt) Limited at an agreement amount of Rs 350. 520 million with two years completion period effect from May 01, 2003 (to April 30, 2005).

On the request of the contractor, the completion period was extended up to August 31, 2005 with the condition that if at any stage during the extended period, the authority feels that the progress of the work is not proportionate to the time elapsed, then the Authority may rescind the work under Clause-111-C of the Contract Agreement. Mobilisation advance of Rs 32. 923 million was paid to the contractor against bank guarantee, which was valid to April 03, 2005 and was further extended up to October 30, 2005.

The contractor lodged a suit in the court of a senior civil judge to restrain the CDA from encashment of bank guarantee against a mobilisation advance; and a stay order against encashment of bank guarantee and performance bond was issued on September 07, 2005, which was valid up to the next date of hearing that is September 10, 2005. That order was never extended beyond September 10, 2005 on any subsequent date of hearing.

On the other side, no effort at all was made by the roads directorate CDA to make it clear to the contractor or to the insurance company or to the concerned bank as well as to the CDA Authority that no such stay order was in force beyond September 10, 2005.

The concerned directorates (law and roads directorates) did not convey to the Authority that original stay order operated for only three days and that legally the CDA was then in a position to encash the bank guarantee under the agreement as the contractor has failed to complete the work. The court had dismissed the contractor’s petition on March 17, 2010 due to non-pursuance by the petitioner. The firm, however, enchased the bank guarantee, which was supposed to be enchased by the CDA.

It is interesting to note here that Habib-ur-Rehman has recently retired from CDA service (during April 2015) and has requested CDA to issue his pension benefit/dues after retirement which can be stopped until completion of the inquiry whereas Abdul Baqi, Director Law has also gone on leave prior to retirement (LPR) in 2014.

His pension dues in CDA can be stopped until completion of inquiry as per CDA rules. It is to mention here that the inquiry officer has not submitted its report despite lapse of stipulated time.

Meanwhile, Maroof Afzal has directed all the inquiry officers of CDA to finalise all the pending inquires against the officials of the CDA within 15 days starting from April 27, 2015 but after passing of one month, all inquiries including the above said inquiry is pending as CDA officers are thinking that on July 27, 2015, local Bodies elections will be held and most of the departments of CDA will come under ICT Administration and their inquiries will be finished.