ISLAMABAD - The Public Accounts Committee (PAC) on Tuesday referred two cases of CDA to the National Accountability Bureau (NAB) for early recovery of the amounts involved and sought their reports within two months.
The committee discussed the embezzlement issues of Rs 3.31 billion mainly due to non-recovery factors. It also sought reports of recoveries of most of the cases within one month from Cabinet Division and CDA while some audit paras were settled.
Chairman PAC Nadeem Afzal Chan and other members of the committee discussed in detail the audit reports for the years from 2004 to 2007 in the presence of CDA Chairman Engineer Farkhand Iqbal, Cabinet Division’s Additional Secretary Shahidullah Baig and Auditor General of Pakistan (AGP) Buland Akhtar Rana.
Chan referred non-recovery of cost of land Rs 24.014 million to NAB and directed it to submit its recovery report within two months. It was revealed in the meeting while discussing this case that Al-Mustafa Towers (apartments) were constructed on a plot in F-10 Markaz despite cancellation by the CDA seven years ago. According to details, the Estate Management Director-II had allotted a plot for construction of luxury apartments in F-10 Markaz in August 1992 for Rs 51.047 million and recovered an amount of Rs 12.761 million as 25 per cent cost of the plot whereas the balance amount of Rs 38.285 million was required to be recovered in four equal half yearly installments. However, the bidder failed to deposit the balance amount as scheduled and allotment was cancelled. The CDA Board decided to recover the balance amount by imposing simple interest. The amount calculated up to June 30, 2004 was Rs 24.014 million.
The meeting was told that CDA did not take any action during the seven years when the apartments were being constructed on a plot, which was cancelled by it. The allottee also filed a civil suit against cancellation of plot and obtained status quo from the court.
The meeting was also informed that the officials who were involved in the case including Amanat Ullah who died and Kamal was retired from service in 2000.
The PAC expressed its serious concern over the lax attitude and irresponsibility of CDA and referred it to the NAB for investigation and recovery and sought report within two months.
The committee also discussed another case of non-recovery of dues for re-payment of foreign loans of Rs 2.338 billion.
The audit official told the meeting that the CDA had completed a scheme of water supply from Khanpur Dam to Islamabad and Rawalpindi in November 1999. The scheme costing Rs 6.82 billion was financed through a Japanese loan of Rs4.01 billion. According to the repayment procedure, CDA had to repay this loan along with interest to the Economic Affairs Division as per amortization schedule.
He said that CDA being the executor and coordinator of the project could not recover the sharing cost for the repayment of foreign loan from RCB and WASA Rawalpindi. He said that a request for adjustment of the loan was made to the Finance Division by CDA through a Cabinet Division letter dated November 2003. He said that the matter was not resolved.
He said that as per the CDA letter dated May 13, 2004 an amount of Rs 232.21 million was deposited out of total principal amount including interest of Rs 2.57 billion leaving the balance amount of Rs 2.338 billion up to June 2004. This amount will accumulate with the passage of time, if not recovered promptly.
The CDA Chairman assured the Committee the payment would be completed at the end of December this year.
The PAC Chairman also directed the CDA while discussing no-recovery of property tax and water charges amounting to Rs 12.848 million to install water meters at all big hotels in Islamabad and Rawalpindi.
The Committee also sought a comprehensive report from FIA on short recovery due to charging of reserve price of the plot instead of prevailing market price Rs 6.804 million by the CDA.
The committee also referred the case of non-recovery of risk and cost charges from a defaulting contractor amounting to Rs 289.6 million to the NAB and sought its report within two months.