Punjab ACE to probe RDA scam

Depending on findings, scandal may also be forwarded to NAB or FIA

RAWALPINDI:

In light of weak financial discipline within the Rawalpindi Development Authority (RDA), a major embezzlement scandal involving Rs1.64 billion in public funds has come to light.

Talking to The Express Tribune on Monday, sources said authorities have decided to refer the matter to the Anti-Corruption Establishment Punjab for investigation. Depending on the findings and nature of the case, it may also be forwarded to the National Accountability Bureau (NAB) or the Federal Investigation Agency (FIA), based on recommendations from the anti-corruption body.

According to the sources, the embezzlement is linked to RDA's role as the executing agency for the Rawalpindi-Islamabad Metro Bus Project. Starting in fiscal year 2016–17, RDA received its share of project funds, which, along with other public funds, were allegedly transferred over a prolonged period to various companies via Call Deposit Receipts (CDRs) from official RDA accounts.

Initially, the suspected embezzlement amount was estimated at Rs3 billion. However, a detailed review of the CDR records confirmed the misappropriation stands at approximately Rs1.64 billion.

In response, RDA Director General Kinza Murtaza first constituted a departmental inquiry committee comprising RDA officers. It included 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. However, during internal consultations, concerns were raised that while a departmental inquiry may establish facts, it lacks the authority to recover misappropriated funds or hold individuals accountable. Therefore, it was decided to treat the matter as a formal reference and forward it to the Anti-Corruption Establishment Punjab.

Additionally, due to the suspected involvement of private banks in the transactions, the Anti-Corruption Establishment Punjab has the discretion to escalate the case to NAB or FIA as deemed appropriate.

Meanwhile, several RDA officials who were in service during the period of the alleged embezzlement—and who have since retired—have been summoned by the DG RDA. Some have already appeared before the authority to present their statements, while others are expected to report soon.

The sources further revealed that a special team within the RDA has already retrieved significant documentation and has identified the specific banks where funds were transferred into private company accounts. These banks have been formally requested to freeze the relevant accounts to prevent the withdrawal or disappearance of public money and to facilitate the possible recovery of misappropriated funds.

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.