RDA scam sparks NAB probe

Sources say payments were made to fake companies through manipulated processes

RAWALPINDI:

An alleged embezzlement scandal involving Rs1.94 billion in the Rawalpindi Development Authority (RDA) has raised serious questions about negligence and misconduct by top officials over the past nine years.

According to sources, the scandal reportedly implicates former and current director generals and directors of administration and finance, all of whom had signatory authority over the RDA's financial affairs.

The matter has now been transferred to the National Accountability Bureau (NAB) via the Punjab Anti-Corruption Establishment for further investigation.

According to sources, over the last nine years, payments amounting to nearly Rs1.94 billion were made from RDA's bank accounts to fictitious companies posing as registered vendors.

These transactions were conducted through Call Deposit Receipts (CDRs), with around 21 transactions linked to eight companies and thirteen individuals.

Standard operating procedures (SOPs) for financial dealings within the RDA were reportedly ignored, and the signatory authority granted to the director general and director admin & finance was misused.

Meanwhile, the responsible authorities failed to monitor bank account activity or audit financial records held both in RDA offices and in the respective banks.

Following the revelation, NAB has started collecting relevant documents from the RDA and corresponding banks.

Letters have also been sent to the private banks involved, requesting transactional records.

This has created a troubling situation for all individuals who held the roles of director general or director admin & finance during the past nine years—whether in service or retired.

Questions are being raised as to why they failed to oversee the issuance of CDRs, track their reference letters, and review how funds were funnelled to various companies and individuals.

According to sources, investigations aim to identify the public officials, fake companies, and individuals involved in the scam, with the ultimate goal of recovering the embezzled public funds.

Legal action is expected against those who received payments either as company representatives or in a personal capacity.

On the other hand, the RDA has prepared a proposed Annual Development Plan (ADP) for the fiscal year 2025-26. The plan, which awaits final approval from the Punjab government, includes major infrastructure initiatives under the "Urban Development Package" and "City Development Package."

The proposed projects consist of three underpasses, one flyover, a multi-storey parking plaza, and several road infrastructure schemes. Each development initiative has been recommended by the respective members of the national and provincial assemblies.