PAC session: CDA gets hair dryer treatment over violations

Plot allotments, no-bid contracts, recovery of dues among issues brought up.

ISLAMABAD:

The Public Accounts Committee (PAC) on Wednesday grilled the Capital Development Authority chairman for failing to follow Public Procurement Regulatory Authority (PPRA) rules while awarding contract worth million of rupees.

The PAC directed the CDA chairman to submit a summary of rules and regulations governing the capital’s civic agency and the powers of the CDA board by Thursday.

A meeting of the PAC chaired by Khursheed Shah was held to discuss audit objections regarding the CDA.

The PAC expressed shock and dismay over undue favours given by the CDA to various contractors and the grant of certain contracts sans any bidding, a major violation of the rules.

PAC also sought details of contract awarded to Muhammad Hussain to operate the Diplomatic Shuttle Bus Service in the Diplomatic Enclave while paying a pittance to the CDA.

The contractor was given 4.5 acres on lease for just Rs44,000 per month for seven years. Meanwhile, he is paying nothing to operate the actual shuttle service.

The PAC expressed astonishment that the contract is charging hundreds of rupees to each passenger, but the CDA is getting nothing, comparing to significant revenues for the contractor. The committee directed the CDA to submit a report on Thursday.

The PAC was also surprised by the CDA’s lackadaisical approach in recovering Rs2.6 billion from the owners of Centaurus. The CDA had also rescheduled the payment plan for Centaurus without seeking the consent of the Finance Division.

CDA Chairman Maroof Afzal told the committee that the owner had refused payments due to non-provision of utility services to Centaurus. Pak-Gulf Construction has also defaulted to the tune of Rs816.27 million in payments to the civic agency, an AGPR representative told the committee.

The CDA had also failed to recover Rs427.80 million — the cost of land allotted for a three-star hotel at the Rawal Lake roundabout — from Pak-Gulf Construction.

The committee was shocked to learn that the CDA had offered post-contract discounts to WorldCall and waived right-of-way charges for the company in connection with a project to lay fiber-optic duct despite violations of the agreement by WorldCall.

PAC directed the CDA to ensure provision of basic amenities, and utility services to successful bidders of plot to avoid refusal of installments payment by allottees on such grounds.

PAC directed the CDA to give possession of land or plot to a successful bidder only after payment of 100 per cent of the cost of land and also to allot plots only after open and transparent bidding. The committee added that post-bid changes in contracts must be avoided at any cost.

PAC also directed the CDA to devise a system to provide citizens secure parking in various shopping centres by charging nominal rates.

PAC also sought report on the construction of two towers at Constitution Avenue adjacent to Jinnah Convention Centre.

The meeting was attended by Shaikh Rashid Ahmed, Syed Naveed Qamar, Dr Azra Fazal Pechchu, Dr Arif Alvi, Sardar Ashiq Gopang, Shahida Akhtar Ali, Junaid Anwaar Chaudhary and Shafqat Mehmood.

The committee referred a Rs276 million case regarding fictitious owners to NAB in which CDA had regularised 19 residential plots in model villages despite failure to deposit any money. The CDA had also regularised such plots despite nonpayment.

With additional input from our correspondent

Published in The Express Tribune, May 29^th, 2014.