Rs1.5b financial scandal hits RDA

A major financial scandal has come to light within the Rawalpindi Development Authority (RDA).

Allegations point to an embezzlement of approximately Rs1.5 billion, dating back to fiscal years 2016-2017.

According to sources, relevant officials are now expected to face questioning.

An internal inquiry committee has been constituted, and the matter may be referred to the National Accountability Bureau (NAB).

Sources said the RDA — the executing agency behind major infrastructure projects such as the completed Rawalpindi-Islamabad Metro Bus and the under-construction Ring Road project — has long engaged in a practice of issuing Call Deposit Receipts (CDRs) despite having funds available in bank accounts.

This was allegedly done to avoid income tax deductions. However, senior officers reportedly failed to maintain transparency and financial discipline in the process.

By protocol, all financial transactions with the bank require joint authorisation from the agency's head and the head of the relevant department.

Initially, reports suggested that Rs3 billion in RDA funds were missing. That figure was later revised down to Rs1.5 billion, prompting an internal investigation after years of silence on the issue.

RDA Director General Kinza Murtaza has now constituted an internal inquiry committee to investigate the alleged financial misconduct.

The committee includes Director Admin and Finance Qazi Sohaib Ahmed, Director State Management Shehzad Nasir Gondal, Director Land Malik Ghazanfar Awan, and Director WASA Tahir Bashir, among others. The committee is expected to summon retired RDA officials as part of the probe.

Sources say the committee has yet to obtain any records from the bank. Relevant RDA officials are currently in contact with the concerned bank to secure documentation.

The investigation will aim to verify the issuance of the CDRs and trace the actual recipients of the credited funds.

According to internal findings so far, CDRs amounting to Rs1.5 billion were credited to various individuals and entities.

It is important to note that authority for cash transfers and other financial matters rests jointly with the institution's head and the departmental chief.

Despite multiple attempts, Director General Kinza Murtaza could not be reached for comment on the alleged financial scandal.