Federal Ministry of Housing paid Rs 2.55bn in ‘fake project’ scam

[Lahore_Real_Estate]

* NA body to take up issue today

By Razi Syed

KARACHI: The Federal Ministry of Construction and Housing paid a huge amount of Rs 2.55 billion for ‘fake housing scheme’ for employees of construction companies, Daily Times learnt on Monday.

President Asif Ali Zardari and Prime Minister Yousaf Raza Gilana have been informed in this regard.

Talking to Daily Times, National Assembly Standing Committee on Housing Chairman Senator Pervaiz Khan who is also Senate housing committee chairman said federal housing ministry signed an agreement with a fake construction company for construction of an employees colony on 3,000 kanals of land in Islamabad.

The issue will be submitted today (Tuesday) before the NA standing committee on housing chairman and members - Khan, Rahaila Qaimkhani from Pakistan People’s Party, Shahid Iqbal from Pakistan Muslim League-Nawaz and Waqas Anwar from Pakistan Muslim League-Quaid.

It is astonishing that 3,000 kanals land is situated in Zone 4, which is declared a sensitive area and no construction or any other construction activity can be carried out without the permission of the defence and interior ministries. “Without going through the rules and regulations, the said ministry signed an accord with Green Tree Construction Company for construction of a employees colony under Federal Government Employees Housing Foundation,” Khan said.

He said the Green Tree Construction Company was paid Rs 1.57 billion in advance from the employees’ provident account of federal housing department. The accord was signed for a total amount of Rs 2.55 billion, to be spent on building the colony for low-income employees of housing ministry. He said the agreement was signed on April 9, 2009 for construction employees’ colony at Bahar Koh in Moaza Phal Karah near Islamabad.

The construction company was paid Rs 950,000 for a kanal, despite the fact that the original cost of each kanal is not more than Rs 150,000, he added.

He said this amount was paid for the possession of 1,650 kanals land, while the housing ministry is yet to take possession of the land.

Senator Khan flayed the behaviour of Federal Minister for Housing and Works Rahmatullah Khan Kaker for nor responding to the queries on the matter instead he showed ill behaviour towards the members of the committee.

Khan said the federal minister did not answer the anomalies committed in this agreement.

He said that he has written a detailed letter to the president and prime minister to asked the minister for providing details about the project to the NA and Senate committees besides documentary proof. He said in case the PM and president do not take any action against the federal minister for housing and works, the entire 13 member Senate committee would resign in protest.

According to the agreement, the said company was bound to complete development work and building of a bridge in nine months after signing of the agreement. On completion of the work, the Ministry of Housing had to pay 60 percent of the total project cost. The Ministry of Housing had to pay a signing amount on agreement of Rs 950,000 at a rate of five percent, but it paid Rs 1.57 billion, he maintained.

The remaining work was to be completed after five months of the payment of 60 percent cost of the said project.

According to an official of the Federal Ministry of Housing, former housing secretary G M Sikander, former director general housing Sher Afzal Khan and former additional interior secretary Zafar Abbasi are involved in this scam. Abbasi was a member of the executive committee of the government employees housing foundation at the time of awarding housing project to the Green Tree Company.

The owner of Green Tree Construction Company Dr Hafiz Abbasi is said to be the brother of Abbasi. He said the payment was made through cheques number, 4065294, 4065234 and 4065270 of Askari Commercial Bank.

It was astonishing that the Capital Development Authority has not issued No Objection Certificate to Green Tree Construction due to sensitiveness of the area.

Commenting on the matter, senior member Sindh Agriculture Forum, Shakeel Ahmad said, “It is a matter of great concern that a strategic place is allotted for construction work by the federal housing ministry.”

He said such anomalies in the funds and political pressure are eating the country’s public money.

If the ministries are making priorities on their own then how can one expect to provide relief to the downtrodden in the country, he lamented. He demanded of the president and Public Accounts Committee to inform the nation about the facts and the people and institutions, which are involved in mass corruption