Audit detects Rs 12b irregularities in CDA

[Lahore_Real_Estate]

Audit detects Rs 12b irregularities in CDA.
2010-11 report carries 77 objections in the form of overpayments and embezzlement
Irfan Bukhari

ISLAMABAD - The federal audit authorities have found financial irregularities, losses and misappropriation of funds worth Rs 12 billion in Capital Development Authority (CDA). The audit report 2010-11 on the CDA accounts carries 77 audit objections revealing gross financial irregularities in the form of overpayments and non-recoveries as well as embezzlement cases. Some of the prominent audit objections are as follows: The audit report says the CDA suffered a loss of Rs 276 million due to regularisation of plots allotted to fictitious owners.
The land and rehabilitation director allotted 19 residential plots to fictitious owners. Some of the allottees succeeded in getting double benefit, some did not deposit the cost of plots, but payment was shown in the official record. Instead of taking action against the fictitious allottees and officers/officials of CDA involved in fraudulent allotment, the allotments of plots were regularised, says the report.
In another case, Rs 2.6 billion were not deposited in the national exchequer due to unauthorised rescheduling for payment of cost of plots by the CDA officials.
The audit report says the project management o director entered into an agreement with M/s Pak Gulf Construction (Private) Limited for the lease of a plot at a total cost of Rs 6 billion, with 25% of the price paid in advance and balance 75% payable in 12 equal quarterly installments up to August 10, 2008. “The CDA rescheduled the terms of payment time and again through amendments to the contract and granted relaxation for payments up to December, 2012, without the approval of the Ministry of Finance.
Despite repeated rescheduling, the lessee failed to deposit the balance amount. This resulted in non-deposit of Rs 2.60 billion,” says the report. The CDA suffered the loss of Rs 184 million due to irregular/unauthentic waiver of Right of Way (ROW) charges. The federal audit authorities have also questioned irregular award of works amounting to Rs 257 million without inviting tenders for supply of furniture for 358 suites of Parliament Lodges, family suites in MNA Hostel worth Rs 44.27 million and various works amounting to Rs 38.20 million at Aiwan-e-Sadar.
In another case, Rs 275.10 million as charges for allowing additional storeys for a plot allotted to Pakistan Red Crescent Society were not recovered. The report also reveals that CDA suffered a loss of Rs 180 million due to unauthorized allotment of agro farms The report also reveals the CDA suffered a loss of Rs 49.45 million due to irregular allotment of petrol pumps/CNG stations. The CDA also suffered a loss of Rs 2.9 billion owing to allotment of land at lesser rates to Air University.
The estate management-II director leased 70 acres of land in Sector H-11/2, Islamabad, for 33 years, extendable for further two subsequent terms of 33 years each, to Air University at the rate of Rs 4,500 per square yard instead of Rs 13,100 per square yard as notified by the finance wing. The report also states that the CDA failed to collect licence fee/rent from different companies, licensees of various shops, restaurants, kiosks, parking sites, coach and taxi stands and suffered the loss of Rs 29.55 million.