NAB initiates probe into multi-million rupee project

No feasibility done prior to awarding contract; PAC had referred the matter to NAB

ISLAMABAD:

Investigation into a multi-million rupee scam in award of contract of a mega cultural project in the capital has formally been launched.

The country’s top anti-corruption body has started investigation into irregularities in the award of contract of the Rs1.1 billion Islamabad Cultural Complex that was given without conducting the feasibility study.





Nestled in the scenic Shakarparian, the abandoned and unfinished project was designed to symbolise the cultural heritage of the country.

The National Accountability Bureau (NAB) has sought documents from the Capital Development Authority (CDA) after a team of investigators visited the project site last week.

In December 2014, the Public Accounts Committee (PAC) had referred the matter to the NAB for a probe.

A source in the civic agency said that the NAB has been told that the project’s contractor, Builders Associates, was on the run from investigation agencies in another case related to the Employees Old-Age Benefits Institution (EOBI) land purchase scam.

Work on the project, approved by the CDA’s Development Working Party on January 16, 2007, came to a standstill in August 2009 after over one year of commencement of work in January 2008.



Under the project, an auditorium, amphitheater, two cinemas, two conference halls, cafeteria, coffee shop, pizza, etc were supposed to be build over 28.5-acre in the vicinity of Lotus Lake near Shakarparian

The unfinished structure present a picture of a ghost building as no one in the civic agency seems willing to resume construction work due to separate inquiries undertaking by the NAB and Federal Investigation Agency (FIA) coupled with other complexities involved.

The only hearing-impaired security guard deputed there denies entry of visitors to the project site.



An investigation officer associated with the inquiry told The Express Tribune that in 2008, the CDA had released Rs165.4 million to the contractor as mobilisation advance against two bank guarantees.

The advance was supposed to be recovered within 15 months after commencement of work. The civic agency failed to encash the guarantees that consequently expired in April 2009, while the contractor obtained a stay from a local court.



“There seem irregularities on the part of the CDA at every turn,” the investigator said adding apparently in connivance with employees of a private bank the contractor managed to reimburse his guarantees in his favour.

The NAB has recently written a letter to the bank asking how and why they returned guarantees submitted in favour of the CDA.

As the authority started proceedings for recovery of mobilisation advance, the contractor obtained a stay order from the Islamabad High Court.

A senior officer of the CDA said that the civic agency was no more interested in the project due to a host of issues and cost escalation while its tentative cost was around Rs2 billion.

Published in The Express Tribune, January 12^th, 2016.