Though badly strapped for cash the Capital Development Authority (CDA) does not mind doling out favours to its friends and losing billions in the bargain. The Express Tribune has learned the authority illegally allotted a number of plots, agriculture farms, shops and sites for restaurants to selected persons, some even in the National Park Area where construction is strictly banned costing it the loss of more than Rs600 million.
The Directorate of Land and Rehabilitation allotted 19 residential plots and built-up property in different sectors to ghost owners. While some of the allottees succeeded in getting double benefit as some did not deposit the cost of plot but payment was shown in the official record. This has been revealed in the annual audit report.
“Instead of taking action against the fictitious allottees and officials of the authority involved in the fraudulent allotment, the allotment of plots were regularised by CDA,” they added. This action alone resulted in a loss of Rs276 million to CDA.
They said that from regularisation of illegally allotted plots, non-recovery of the properties’ sale/rental receipts and failure to take back possession of cancelled plots has incurred losses exceeding Rs600 million to CDA, the sources said, quoting Auditor General of Pakistan’s (AGP) objections on the civic body’s annual audit report.
The sources said that while unauthorised allotment of one plot in category-VI and two plots in category-III in sector I-8 from CDA’s quota to Federal Government Employees Housing Foundation (FGEHF) caused a loss of Rs210 million. The civic body incurred Rs78 million losses for failing to take back possession of a cancelled commercial plot, 36-B in Industrial sector I-9.
Similarly, non-recovery of sale receipts of plots in sector I-16/4 and sector I-8/4 caused Rs35 million in losses to CDA, while unauthorised allotment of agro-farms, which also drew intervention of the Supreme Court of Pakistan, incurred Rs206 million losses to the civic agency. The authority also bore Rs70 million losses due to irregular allotments of shops, restaurants and sites to selected individuals, the sources added.
The sources claimed that Director Municipal Administration, Mansoor Ahmad Khan, illegally rented out various art and craft places, shops, restaurants and plots to selected individuals for a period of 10 years. Of which some allotments were made on verbal orders. The allotment terms were extended for five years to selected persons without advertising these in print media or through open competitive bidding in violation of the Public Procurement Rules 2004. These illegal allotments caused Rs55.66 million losses to the CDA.
The sources added that undue concession on cost of land for construction of Monal Restaurant at Pir Sohawa in the National Park Area caused loss of Rs14.74 million to CDA.
Sources said that the restaurant was constructed on the desire of former military dictator General Musharraf .
During annual audit, the sources said, the AGP stressed on revision of PC-1 through adjustment of cost of land.
The audit reports attributed some of the financial anomalies to weak financial and internal controls, recommending review of the illegal regularisation of plots and action against the fictitious land owners and CDA officials involved in the fraudulent transactions.
CDA, in its reply to the AGP, wrote that expressions of interest were invited through the press and units were licensed out on monthly rent basis after recommendations of the civic body’s committee constituted for the purpose. But the auditor did not accept the reply and said that shops/restaurants and sites were allotted to selected individuals without preparation of comparative statement, qualification and in some cases allotment were made on verbal orders. The auditor general also asked CDA high ups to fix responsibility against officials involved in such malpractices.
Published in The Express Tribune, May 23rd, 2011.
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