ISLAMABAD - Missed development targets, a sharp increase in non-development expenditures, low revenue collection and above all irregularities in over Rs 27.72 billion - this is all the Auditor General of Pakistan has unearthed in its report on the accounts of the Capital Development Authority (CDA) for audit year 2011-12.
The report mentioned that the Authority missed an enormous 65 per cent of its planned targets pertaining to the development of the federal capital for fiscal year 2011-12. While during the same year there was an excess of 135.35 per cent in non-development budget of the Authority.
“During fiscal year 2011-12, the non-development expenditure was on rise whereas development activities were not being given priority,” audit report stated.
The AGP also pointed out the unrealistic and over-ambitious estimates in terms of collection of revenue the Authority had portrayed in its budget document for year 2011-12.
The CDA, during 2011-12, collected revenue of Rs 10.23 billion - from self-financing sector and other receipts - against estimated receipts of Rs18.9 billion. Thus, there was a shortfall of Rs 8.67 billion (45.86 per cent) in overall estimated receipts.
“The figures indicate that estimates of receipts were either unrealistic or the Authority failed to exploit and derive benefits from the available resources,” the report stated.
During the outgoing fiscal year the federal government under the head of Public Sector Development Programme (PSDP) for the year 2010-11 released Rs 326.967 million to Authority out of Rs 2.23 billion allocations it had announced for the outgoing fiscal year. However, the authority did not fully utilise the released funds under PSDP by leaving a balance of Rs 17.822 million in its accounts. The audit report has lamented weak internal controls and absence of proper monitoring for irregularities of Rs 27,722.98 million. The AGP has found massive irregularities running into billion of rupees in land and estate directorate of the Authority. It pointed out massive irregularity of Rs 13.34 billion in an unjustified announcement of award for the acquisition of land for development of Sector H-16 and I-17. Audit observed that award was announced by Director Land and Rehabilitation only for compensation of land and did not take into account cost of damages and built up property. In the absence of compensation for cost of damages and built up property, the CDA could not take possession of the land, meanwhile, the occupants approached the court for status quo and the matter is still pending with the court.
Audit held that due to aforementioned ill planning the CDA despite payment of Rs1.25 billion could not take possession of the land. Similarly, in another case, audit pointed an irregularity of Rs1.128 billion when CDA announced award for acquisition of land and built-up property in Kuri and Rehara village. CDA paid the compensation but it failed to get possession of land till to date. While over the period of time a large part of the subject land was encroached upon.
The audit observed that when initially compensation was announced there were only 1071 houses in Kuri and Rehahra villages, while in year 2010 these houses were reckoned as 7096 houses.
In another case where CDA incurred a loss of Rs1.88 billion owing to non-recovery of cost of land and annual ground rent.
Audit observed that Planning Wing of the Authority allowed establishment of Gun Club by an entity, which was neither registered under any law as a business concern nor as a non-governmental organization, on 72 acres of land without signing any lease agreement during the year 2001. The entity did not pay the cost of land and annual ground rent.
The audit also pointed out irregularities amounting to Rs938.25 million due to non-recovery of fine due to violation of Zoning Regulations.
AGP stated, the terms and conditions of lease agreement of Nursery plots, Park Road provides that lessees would develop nursery plots in three years from the date of license, while Director Estate Management II did not take any action towards cancellation or recovery of fine from the allottees that did not develop nursery plots within specified time of three years.
Irregular award of contracts without proper competition, deviation from contract clauses, frequent revision of estimates, award of work at higher rates, non-acceptance of highest bids, non-recovery of penalties/licence fees/income tax/withholding tax/water and property tax/ etc also caused loss of million of rupees to Authority.
Audit observed that in several cases CDA even did not bother to respond positively to directions of AGP in this regard.