PAC reprimands CDA chairman, seeks report on Rs 9b irregularities


A sub-committee of the Public Accounts Committee (PAC) has summoned report on June 3 from the chairman Capital Development Authority (CDA) with respect to Rs 9 billion financial irregularities and malpractices in the civic agency.

The PAC reprimanded chairman CDA for not revoking the fraud allotment of 19 plots worth over Rs 270 million in Margalla Town and Chak Shahzad and non initiation of action against members of the board.

The audit authorities during the meeting told the sub-committee that over the objections raised by the audit in bogus allotment of 19 plots valuing Rs 276 million in Margalla town and Chak Shahzad, PAC had directed the CDA to cancel the allotment of all the plots, hand over the case to NAB and initiate an action against the CDA board. But these directives have not been complied with so far.

Audit told the committee that CDA awarded contract of visa shuttle services against Rs 44,444 per annum in 2008 in diplomatic enclave. 4.5 acres land was also leased out to the respective company. Under the agreement, Rs 200 each were received from those who visited the embassies to obtain a visa. All the original files were found missing when it was tried to inquire into malpractices.

The committee had given 16 days to the chairman CDA to make recovery from the contractor, hand over the case to NAB and bring the contract in conformity with Public Procurement Regulatory Authority (PPRA) laws. But these orders were also not implemented.

Audit told the committee that CDA has neither taken any action in respect of 25 audit paras of over Rs 9.21 billion for the year 2010-11, nor has the audit been informed about any progress in these audit objections.

Convener subcommittee Shafqat Mehmood inquired from the chairman CDA as to why the PAC orders have not been complied with in regard to cancellation of plots and initiation of action against the persons found responsible.

Member of committee Abdul Mannan said that name of those to whom plots were allotted in Chak Shahzad and Margalla town should be presented before the committee, so that it could be ascertained who are involved in this corruption.

He further inquired as to why no action has been taken in respect of the members of the CDA board against whom committee had ordered for launching action and why show cause notices have not been served upon them?

Chairman CDA told the committee that all the record in this regard is held by NAB due to which no action could be taken.  He further told that the record of Islamabad shuttle service scam case was lost. However, some record was reconstructed and handed over to NAB.

Chairman committee said that no institution stands absolved if the case goes to NAB. He also inquired from NAB what progress has been made in this case.

Committee directed the chairman NAB to cancel the allotment of plots made in Chak Shahzad and Rawal town forthwith and provide the name of those to whom bogus allotment of plots was made.