Sabzi Mandi parking scam: Case registered against fraudster, CDA inquiry nowhere in sight

Flawed Sabzi Mandi contract was granted to a fake bidder in March 2011 which cost the national exchequer millions.

Obaid Abbasi March 05, 2012


The police on Monday registered a case against the principle accused in the fake Sabzi Mandi car parking contract scam.

The flawed Sabzi Mandi (Sector I-11) contract was granted to a fake bidder in March 2011, which has cost the national exchequer millions, according to an official.

Mumtaz Ali Khan, the main accused, had deposited two fake cheques worth Rs17.5 million with the Capital Development Authority (CDA), he added. However, the case registered at Aabpara Police Station is against two persons, Khan and Naveed Anjum, who used the name of a reputable private firm and participated in the bidding.

The CDA Directorate of Municipal Administration (DMA) had awarded the contract for Rs35.5 million through open bidding. However, Mumtaz Ali Khan had used the name of a private firm with which he had no affiliation to acquire it, allegedly in connivance with CDA officials.

According to the terms and conditions, Khan had to pay the contract amount along with a Rs5 million security deposit within a year. However, eleven months in, the bidder had only paid Rs3.5 million, costing the civic agency millions in losses at a time it is unable to pay many employees their salaries.

A CDA official said that during an internal audit of the relevant department, the auditor also pointed out the scam, but the high ups ignored the issue.

However, sources said the CDA has not started a departmental inquiry against its own officials regarding the scam, nor has the contract reauctioning been planned.

CDA Spokesperson Ramzan Sajid confirmed that the CDA had formally lodged a complaint. On the CDA’s reluctance to take action against officials involved in the scam, Sajid said that he was unaware of this issue, but suggested DMA Director Mansoor Ahmed Khan would know more.

Repeated attempts were made to contact Khan, but he was not available for comments.

Published in The Express Tribune, March 6th, 2012.


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