Diplomatic Shuttle Service: Despite violations, CDA officials, contractor cleared

NAB writes letter stating case is closed.

ISLAMABAD:

In a major development, the top anti-corruption watchdog has cleared two officials involved in awarding the contract for what is arguably one of the most controversial outsourced projects in the Capital Development Authority’s (CDA) history, the Diplomatic Shuttle Service.

Interestingly, National Accountability Bureau (NAB) Rawalpindi shared their findings with the CDA chairman the same day a judicial commission constituted to scrutinise several controversial projects initiated by CDA, suggested the Islamabad High Court (IHC) direct the civic agency to initiate action against the officials involved.

The commission has recommended that the contract should be cancelled at once, the project should be re-advertised for bidding and CDA should recover the excess amount charged from visitors to the Diplomatic Enclave. It was agreed that the contractor would charge Rs200 from passengers, but the report stated that he had admitted to charging Rs500 per trip.

Despite fresh bidding for the contract after the Diplomatic Shuttle Service was relocated, it was given to the same firm, which had been operating the service east of the Convention Centre, in violation of Public Procurement Regulatory Authority rules.

Due to security concerns, Diplomatic Shuttle and Transport Service was shifted to 3rd Avenue. In another blatant violation of rules, 36 kanals at a prime location was leased to the contractor for operating the shuttle service at Rs2 per square yard a year. The report also mentioned that built-up property on the site was in excess of the project’s requirement, which was given to the contractor on the basis of build, operate and transfer.

The letter, issued by NAB Additional Director Shafqat Mehmood on behalf of Rawalpindi NAB DG, which is available with The Express Tribune, stated that the bureau had closed the investigation into the Diplomatic Shuttle Service project. The inquiry was initiated on allegations of irregularities, but NAB Rawalpindi cleared all the accused.

The officials whose names were cleared are CDA Planning Director General (DG) Ghulam Sarwar Sandhu, Planning Deputy Director Abdul Haq Barohi and the contractor, Muhammad Hussain, managing director Diplomatic Shuttle Service.

CDA Member Planning and Design Mustafain Kazmi confirmed the development, saying the IHC’s decision was still awaited. “CDA will initiate the process of cancelling the contract for the Diplomatic Shuttle Service on Monday and we will also recover the amount charged from visitors in violation of the agreement for “additional facilities,” Kazmi said.

“NAB enjoys a ‘good repute’ in clearing officials loyal to a property tycoon and in continuation of this practice, NAB glossed over the project’s irregularities and closed it after clearing all the accused,” said a senior CDA official, requesting anonymity.

NAB spokesperson Ramzan Sajid said in light of the commission’s recommendations, NAB would once again look into the project to ensure transparency.

Published in The Express Tribune, April 28^th, 2013.