During 2011-12, non-development expenditure rose by 137.24 per cent whereas development activities were not being given priority, the audit report noted. ILLUSTRATION: JAMAL KHURSHID/FILE
Low revenue collection, missed targets and irregularities worth Rs93.85 billion are just the ‘highlights’ of the Capital Development Authority’s (CDA) performance for the fiscal year 2011-12.
The report states that the authority missed over 70 per cent of its targets for the development of the federal capital in 2011-12.
During the same period, the civic authority overspent its budget on non-development projects. During 2011-12, non-development expenditure rose by 137.24 per cent whereas development activities were not being given priority, the audit report noted.
The Auditor General of Pakistan (AGP) pointed out that “unrealistic and overambitious revenue collection estimates were shown in the CDA’s budget documents for 2011-12. During that year, the CDA collected Rs10.28 billion from self-financing and other sources against estimates of Rs17.31 billion — showing a shortfall of over Rs7 billion in overall estimated receipts.
“The figures indicate that the authority failed to exploit and derive benefits from the available resources,” the report stated.
The icing on the cake was that CDA officials did not even bother to provide records for 22 projects including LED streetlights and agro farms to the auditors despite repeated reminders, the report says.
During 2011-12, the federal government released Rs923.85 million to the authority under the Public Sector Development Programme (PSDP) out of promised Rs2.08 billion. Out of amount released, the authority used Rs904.17 million.
The report lamented weak internal controls and the absence of proper monitoring for loss, non-recovery and irregularities of Rs93.85 billion.
Some 52 paragraphs of the audit report refer to Rs79.1 billion lost due to irregularities, non-compliance and non-production of records, while the remaining 26 paragraphs deal with losses incurred due to weak internal controls and poor performance in general.
Most of the large amounts in the irregularities heads are related to CDA Estate Wing.
The report pointed out that the biggest loss, Rs20.207 billion, was incurred due to irregular allotment of 3,978 residential plots in sectors G-10, G-11,I-8, I-10, I-11, D-12 and E-12 to CDA employees and officers working in the authority on deputation. The allotments were in violation of the Land Disposal Regulation 2005.
“Allotments were made in excess of the admissible five per cent quota reserved for CDA employees in each residential sector,” report observed.
In another audit para, the AGP pointed out loss of Rs6.223 billion caused by encroachments on CDA land by hotels and hospitals.
The audit found that CDA land measuring 10,067 square yards and 14,000 square yards was encroached by Marriott Hotel and Serena Hotel in Islamabad respectively. Similarly, land measuring 14,410 square yards is occupied by Shifa International Hospital. If calculated at current market rates, the land values in Rs6.223 billion.
In another case, the authority failed to collect Rs4.513 billion in lease extension fees from the owners of commercial plots in different sectors. Such owners were given plots on 33 year leases, and upon expiry of the lease period, the CDA did not extend the lease agreements or retake possession of the plots.
Similarly, illegal occupation of 352 kanals by the National Police Foundation caused a loss of Rs7.04 billion.
Irregular allotment of 6,400 plots to illegal occupants of CDA-acquired land in Kuri and Rehara villages resulted in loss of Rs18 billion.
The loss of Rs1.032 billion due to non-recovery of fines imposed on account of non-conforming use of residential houses, Rs2.43 billion due to falsified approvals of layout plans and the issuance of no objection certification to the National Police Foundation E-11 Housing Scheme, Rs330.88 million due to irregular use of CDA land by private housing colonies, Rs8.618 due to protracted delays, and the failure to develop Sector I-15, were also observed.
There are also references to the acceptance of sub-market rate bids during the auctioning of commercial and residential plots, the award of work tenders at higher rates, failure to impose fines on contractors for violations of terms and conditions of agreements, non-recovery of toll fees, wasteful expenditures, irregular plots auctions, double payments made to illegal occupants, illegal announcement of awards for CDA acquired land, and exaggerated assessments of built-up properties.
Published in The Express Tribune, June 19th, 2013.
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