Plunder of public properties

Rs7.4 million lost annually by Abbottabad govt due to encroachments on government property, mismanagement.

ABBOTABAD: Influential people encroaching on government property in Abbottabad together with mismanagement of city fathers and the reign of irregularities is costing local government a loss of Rs7.4 million annually.

The district government Abbottabad is losing Rs2.1 million alone on account of low rents it is charging from it tenants compared to prevailing market rates. A number of government properties have been occupied by influential people, particularly in Nathiagali resulting in huge loss to the local government. Moreover some properties like kiosks and cabins are not shown in government records to steal the income accruing from them.

These and other interesting revelations which have been made in a report, “Reconstruction of Record of real estate/land assets of District Government and Municipal Administrations Abbottabad,” prepared by the Decentralization Support Programme of the Federal Government.

In addition to losses from charging lower than market rentals income from 19 government-owned houses and three bungalows is not verifiable as the occupants are either government servants or payments are made through inter-department money transfers.

The report disclosed that the Gol Fruit Market with 31 rooms on the upper storey is rented to a hotel on a monthly rent of Rs.20500, which is a fraction of what a private landlord would be charging for this commercial property. There are 35 shops and four cabins on the ground floor and another 12 shops in the adjacent Raees Khana Bazaar.

Centrally located in the commercial hub of the town this prime property is only fetching a monthly rent of Rs125,000. “This probably is the worst example of assets mismanagement,” laments the report.

There are five rest houses in Abbottabad including the DB House at Nathiagali. According to land record, the total area of the DB House is 41 kanals and 18 marlas of which 10 kanals and 5 marlas have been encroached upon by influential persons. “The Revenue Department has nothing on its record about the encroached area and as such a further inquiry would be required as to who from Galliat Development Authority allowed these people to build their houses on the property of the district government”. This property is a loss-generating asset with expenditures three times more than its income, the report claimed.

The report pointed out 26 other units covering 61 kanals 11 marlas land which are under high risk of encroachment. Shimla Hill where the District Government possesses 1,434 kanals land is without any title along with 98 kanals land at Sheikhul Bandi Surban.

The total area of the properties owned by the Tehsil Municipal Administration (TMA) Abbottabad is 406 kanals within the city, out of which only 5.6 per cent is in commercial use while 94.4 per cent is under non-commercial use. The findings of the report reveal that some of the non-commercial property can be conveniently put into commercial use to earn revenue for the fund strapped local government.

As per TMA record, its commercial property is spread over 22 kanals and 11 marlas consisting of 637 physical units on whose rental the TMA was losing Rs5.3 million per annum. This property includes six single-storied offices on Kutchery Road that have been rented out on a nominal rent of Rs160 per month. There are three hotels and one canteen from which no rent is charged.

The report has indicated a number of other properties which are being mismanaged in this fashion including those also which find no mention in official record. Income from these properties is definitely being pocketed by officials. It is also possible that tenants are actually paying more than what is being shown in government record. This whole business is very fishy and needs deeper probe to restore government losses and catch the thieves.

Published in The Express Tribune, November 4^th, 2010.