The audit authorities on Monday raised 78 audit objections against the Capital Development Authority (CDA) for financial embezzlement, mismanagement, and losses worth Rs 117 billion in the fiscal year 2012-13.
50 objections were regarding irregularities and non-compliance, 9 about performance, 17 about internal control weaknesses, while two highlighted non-provision of record by CDA.
The report detected that Rs 672 million of land premium from Pak-Gulf Construction and NLC had not been recovered.
Further, the audit authorities detected irregular plot allotments worth Rs 112.53 million to CDA employees’ husbands and wives.
The audit also found that the estate member had created 800 additional plots in sector I-8, and 3187 in sectors G-10, G-11, I-10, I-11, D-12 and E-12 for CDA employees, which exceeded the five percent quota.
They also detected losses worth Rs 6.223 billion due to encroachment on CDA land by Marriott Hotel, SerenaHotel, ShifaInternationalHospital and Pir Sohawa Capital View Point.
Further, it was revealed that the CDA refused to accept the lowest bid worth Rs 5.53 billion by Siteco for replacing streetlights with LED lights, instead awarding the contract to the second lowest bidder.
The CDA also failed to recover Rs 4.51 billion of commercial plots’ lease extension in various sectors despite lease expiry.
Moreover, the CDA faced losses worth Rs 2.05 billion by accepting a lower auction bid for six commercial plots in Blue Area in June 2012.
The audit authorities also found that the CDA had auctioned plots to pre-qualified firms through limited competition and received Rs 300,000 per square yard against the competitive price of Rs 433,000 per square yard. They also approved a housing society’s layout plan and issued a No Objection Certificate (NoC) without transferring 488.69 kanals of land reserved for amenities to the CDA.
The report also pointed out that there had been wasteful expenditure of Rs 77.94 million on the Walk-in Aviary as the CDA failed to complete the project despite a 36 months lapse for what was supposed to be a self sufficient and revenue generating project.
The auditors also detected wasteful expenditure of Rs 409.19 million on the Parade Ground, plot restoration to a firm in sector G-9 in violation of by-laws, irregular auction and plot allotment plot worth Rs 235.82 million in various sectors and the Orchard and Agro Farm Scheme.
The report also highlighted the allotment of 6,400 plots to illegal occupants of CDA acquired land worth Rs 18 billion in Kuri and Rehara villages.
The illegal occupation of 352 kanals of land worth Rs 7 billion by the National Police Foundation was also detected.
Among other irregularities were the exaggerated assessment of properties worth Rs 1.83 billion, non-recovery of Rs 720 million income tax and property tax valuing Rs 924 million, fictitious approval of layout plan and issuance of NoC to the National Police Foundation for Rs 2.4 billion and failure to construct flats in sector I-15 involving Rs 8.6 billion.
The audit report revealed that the engineering member and estate member did not produce any record of around 23 projects.
The audit report also suggested that corrective measures like awarding independent work additionally to mobilise contractors, launching projects after proper planning, exploiting revenue opportunities, revalidating expired leases, following due process in hiring and ensuring bank guarantees and insurance from contractors.
