As per schedule, the authority was supposed to complete the process of collection of the total cost of 613 plots that was Rs7.4 billion till December 2012.
ISLAMABAD:
The city managers continue to dent what remains of the Capital Development Authority’s (CDA’s) credibility.
It has been learnt that even after emptying the development account of the Park Enclave Housing Scheme - a housing project the authority launched in 2011- there is very little work done to show off at the site.
Reliable sources in the Finance Wing said the civic agency has spent around Rs2.5 billion (93.7 percent) of the Rs2.7 billion it has so far collected from citizens on account of down payments and instalments of plots-- that only exist on paper currently.
Out of the Rs2.5 billion, some Rs33 million have been refunded to the allottees, who were no more interested to construct a house in the CDA’s “dream housing scheme”, while the remaining Rs2.467 billion have been utilised against contingency payments, salaries of employees and other running expenses.
The CDA formally launched the Park Enclave Housing Scheme in July 2011. Some 613 applications had been received against a total of 725 residential plots, each costing Rs12 million.
The payment of the total cost of a plot was spread over six equal instalments of Rs1.8 million after the down payment. As per schedule, the authority was supposed to complete the process of collection of the total cost of 613 plots that was Rs7.4 billion till December 2012.
After the civic agency failed to fulfil its commitment regarding complete development and handing over of the possession of plots till December 2012, the allottees stopped submitting the instalments to the CDA.
It was decided during the CDA Board meeting on August 23, 2011 that 60 percent of the total proceeds of the Park Enclave Scheme will be utilised for the development of the scheme, while 40 percent for contingency payments. But it never happened and the city managers violated the board’s decisions due to paucity of funds.
The salaries were paid by transferring funds from “Park Enclave Development Account” from September 2011 to March 2012 following the approval of the board.
In September 2011, Rs400 million were withdrawn from the account of Park Enclave-- Rs 370 million in January 2012, Rs 200 million in February, Rs250 million in March. The total amount withdrawn from September 2011 to March 2012 was 40 percent of the total amount in the Park Enclave account, said an official.
However, later during another meeting held in May 2012, the board was informed that during the past three years, CDA’s revenue from other sources had been depleted, while the outflow (expenditures) was increasing everyday.
“Due to this situation, the payment of salaries has become very difficult,” the minutes of the board meeting, available with The Express Tribune, quoted the then member finance as saying in May, 2012.
The board was informed in the first week of May 2012 that the developmental process would start and the flow of the remaining instalments would speed up and the CDA would have sufficient funds for development of the scheme.
“In view of the position explained above, the CDA Board is requested to accord approval for the amount so far utilised from the “Park Enclave Development Account” for salary expenses ignoring the prescribed limit of 40 per cent at this stage through circulation,” the minutes of the board meeting suggested.
In the meeting, the board approved the utilisation of the Park Enclave Development accounts on a loan basis for the payment of salary and utility services.
Now, the authority is left with only Rs200 million out of the total amount Rs2.7 billion collected from citizens and the development of the project is not in sight.
CDA Spokesperson Ramzan Sajid, said the amounts were withdrawn from Park Enclave’s development account following the approval the CDA board. “The CDA Board takes decision in the greater interest of the authority and under given circumstances,” Sajid said, adding currently the financial health of the authority was satisfactory. He said that the money had been withdrawn as loan and it will be re-accounted soon.
Published in The Express Tribune, February 22nd, 2013.
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The irony of the situation is that even in this failed housing project, CDA balloted plot fraudulently and influential people from bureaucracy, media, politics got the plots at good locations. The ordinary citizens were given plots in the ditches. After reading this new, I am happy that every one is drown irrespective of the status of this project or perhaps the rich ones have already gotten back there money and it is the ordinary citizens who lost their money!!!