Unbalanced finances: CDA departments ordered to submit balance sheets
Agency subsidiary will examine assets and liabilities for future mega projects.
CDA departments ordered to submit balance sheets. PHOTO: FILE
ISLAMABAD:
In a bid to determine the Capital Development Authority’s (CDA) assets and liabilities, the civic agency’s chairman on Wednesday directed board members to submit the full financial statements of their respective wings.
CDA Chairman Nadeem Hasan Asif issued the order during a meeting, which was attended by all board members and relevant officials. Following the meeting, the data collection process for the statements was initiated.
“Financial statements are prepared with an aim to determine the CDA’s land bank and establish how much the civic agency pays against built-up properties and land acquired from locals for the establishment of residential sectors. The intention is to streamline affairs,” said a senior CDA official.
A large chunk of all assets and liabilities is associated with the CDA’s Estate Wing, which will provide details of residential, commercial, agricultural and industrial plots in its possession and of arrears against acquired land running into billions, added the official.
“The chairman wants to introduce a corporate culture in the CDA. A public limited company and CDA subsidiary that will be managed by a board of directors has already been established. The company will execute future mega-development projects,” said a board member.
The CDA Board has already approved the formation of this company while the civic agency is in process of registering it with the Securities and Exchange Commission of Pakistan (SECP).
The CDA spokesperson while speaking to The Express Tribune said the company aims to introduce modern corporate governance — in line with the government’s vision — to restructure public sector organisations.
Another official privy to the recent developments said that under the proposed plan, the financial statements will be provided to the company’s board of directors, who will then be in a position to take the necessary action.
“The assets’ financial statements will be shared with the government, who in response will issue sovereign guarantees required by international firms to execute development projects,” added the official.
The initiative is also expected to help the CDA clear its outstanding dues. “Pending liabilities amounting to Rs38 billion are a matter of concern for the civic agency’s new management,” said the official.
During the regime of former president Pervez Musharraf, a separate directorate — the Project Management Unit (PMO) — was set up, he said.
“Though PMO initiated and completed numerous mega projects including road projects during that period, it was surrounded by controversies for neglecting project execution rules and procedures and terms and conditions it had agreed on with investors,” he added.
Published in The Express Tribune, September 1st, 2013.
In a bid to determine the Capital Development Authority’s (CDA) assets and liabilities, the civic agency’s chairman on Wednesday directed board members to submit the full financial statements of their respective wings.
CDA Chairman Nadeem Hasan Asif issued the order during a meeting, which was attended by all board members and relevant officials. Following the meeting, the data collection process for the statements was initiated.
“Financial statements are prepared with an aim to determine the CDA’s land bank and establish how much the civic agency pays against built-up properties and land acquired from locals for the establishment of residential sectors. The intention is to streamline affairs,” said a senior CDA official.
A large chunk of all assets and liabilities is associated with the CDA’s Estate Wing, which will provide details of residential, commercial, agricultural and industrial plots in its possession and of arrears against acquired land running into billions, added the official.
“The chairman wants to introduce a corporate culture in the CDA. A public limited company and CDA subsidiary that will be managed by a board of directors has already been established. The company will execute future mega-development projects,” said a board member.
The CDA Board has already approved the formation of this company while the civic agency is in process of registering it with the Securities and Exchange Commission of Pakistan (SECP).
The CDA spokesperson while speaking to The Express Tribune said the company aims to introduce modern corporate governance — in line with the government’s vision — to restructure public sector organisations.
Another official privy to the recent developments said that under the proposed plan, the financial statements will be provided to the company’s board of directors, who will then be in a position to take the necessary action.
“The assets’ financial statements will be shared with the government, who in response will issue sovereign guarantees required by international firms to execute development projects,” added the official.
The initiative is also expected to help the CDA clear its outstanding dues. “Pending liabilities amounting to Rs38 billion are a matter of concern for the civic agency’s new management,” said the official.
During the regime of former president Pervez Musharraf, a separate directorate — the Project Management Unit (PMO) — was set up, he said.
“Though PMO initiated and completed numerous mega projects including road projects during that period, it was surrounded by controversies for neglecting project execution rules and procedures and terms and conditions it had agreed on with investors,” he added.
Published in The Express Tribune, September 1st, 2013.