Shady deal: PM asks CDA to halts bidding process for commercial plots

Seeks report from cabinet secretary in three days.

ISLAMABAD:

Prime Minister Raja Pervez Ashraf, on Thursday, halted the bidding process for priced commercial plots in Blue Area after a controversy over the pre-qualification process erupted in the media.

The prime minister has sought detailed and updated report from Capital Development Authority (CDA) Chairman Farkhand Iqbal and Cabinet Secretary Nargis Sethi on the issue.

Media reports have questioned the transparency of the pre-qualification of 11 candidates for the 12 plots in Blue Area.

The prime minister directed the two officials to hold the auction process in abeyance and submit a detailed report within three days, stated a statement issued by the Prime Minister Secretariat. Sources said that the prime minister was furious over the controversial deal.

The media had reported that the pre-qualification for new commercial plots in Blue Area was carried out in a way which could have benefited influential businessmen and politicians. Only 11 bidders were shortlisted for 12 commercial plots, which automatically lowered prices and foreclosed competition.

The lack of open bidding barred others from participating in the auction, paving the way for blue-eyed investors to get the commercial plots at throwaway prices. These 12 commercial plots measuring up to 1,333.33 square yards located in F-9 and G-9 fall in the expanded Blue Area.

Sources said in the past eight months exclusive pre-qualification was permitted several times. The secret pre-qualification process not only benefited influential persons, but also cut down the price of the plots due to lack of competition and ultimately resulted in a loss to the national exchequer.

“There are some influential businessmen and politicians connected to two major coalition parties who have a major role in influencing the bidding process at the civic agency,” said a senior CDA officer requesting anonymity.

When contacted, CDA spokesperson Masoodur Rehman said media reports prompted the prime minister to question the transparency of the bidding process. He maintained that the biding process had not been finalised and the CDA committee was yet to scrutinise the bids.

Justifying the low turnout in the bidding, he said, few parties participated in the bidding due to the economic crunch. “We first shortlist parties through pre-qualification and then bids are invited one by one. This practice is as per rules and has been followed by CDA for a long time.” I don’t know the why the media twisted the issue as it was at the initial stage and even the chairman was not aware of the development, he added.

Despite repeated attempts, chairman CDA and cabinet secretary could not be contacted for comments.

Published in The Express Tribune, August 31^st, 2012.