Islamabad: Rs 12bn bungling detected in CDA

[Lahore_Real_Estate]

The Auditor General of Pakistan (AGP) has identified embezzlement amounting to Rs 12 billion in the financial records of Capital Development Authority (CDA) during the financial year 2008-09.

The audit report made 14 observations in five categories, including mismanagement in different projects worth Rs 7.7 billion, loss to authority worth Rs 3.1 billion, irregularities in contract management worth Rs 643 million, non recovery of Rs 281 million and overpayment due to officials’ negligence amounting to Rs 206 million.

However, when contacted, spokesman of CDA Ramzan Chaudhry rejected the audit report and said that unless established by a concerned Public Accounts Committee (PAC), he could not term it as embezzlement under specific rules and regulations.

The total budget of CDA for the fiscal year 2008-09 was Rs 25.89 billion and the AGP exposed massive irregularities and mismanagement in the above stated amount.

The report identifies the mismanagement of Rs 7,769 million in CDA accounts due to the defective approval of building plan for Grand Hayyat, a five star hotel, without getting No Objection Certificate (NoC) from Civil Aviation Authority, unauthorized extension of commercial area, on cancellation and possession of Agro farms due to non-devolvement and non-confirming use.—APP