Rs117b embezzlement detected in CDA last year

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Rs117b embezzlement detected in CDA last year

ISLAMABAD - The audit authorities have detected the financial embezzlement worth Rs 117 billion in accounts of the Capital Development Authority (CDA) during the outgoing fiscal 2012-13.

The audit authorities have raised 78 audit objections on the CDA's accounts out of those 50 audit paras related to the irregularities and non-compliance, 9 regarding performance, 17 related to internal control weaknesses and two highlighted the non-provision of record by the CDA authorities.


The audit report has detected the non-recovery of Rs 672 million premium of land from Pak-Gulf Construction and NLC, irregular plots allotment to husbands and wives of CDA employees worth Rs 112.53 million, allotment of plots worth Rs 20.2 billion in developed sectors. The audit found that the Member Estate created 800 additional plots in sector I-8 and 3187 plots in sector G-10, G-11, I-10, I-11, D-12 and E-12 and allotted these plots to CDA employees and deputationists in excess of five percent permissible quota.


The auditors have also detected the loss worth Rs 6.223 billion faced by the CDA due to encroachment on the CDA land by the Marriott Hotel, Serena Hotel, Shifa International Hospital and Capital View Point at Pir Sohawa.


The corruption watchdogs have found that CDA refused to accept the lowest bid worth Rs 5.53 billion by M/s Siteco for replacement of streetlights with LED lights and warded contract to the second lower bidder M/s Oslo. The CDA also failed to recover Rs 4.51 billion of lease extension of commercial plots in various sectors despite expiry of their lease.


Moreover, the CDA faced loss worth Rs 2.05 billion by accepting the auction bid at lesser rates without open auction of six commercial plots in Blue Area in June last year. The audit found that CDA auctioned plots to the pre-qualified firms through limited competition and received Rs 300,000 per square yard against Rs 433,000 per sq yd coming from the open auction of a plot there in the same period.


The audit report found that the CDA approved a layout plan of a housing society owned by a real estate tycoon and issued NOC without transferring 488.69 kanals land reserved for amenities to the CDA. The report also pointed out wasteful expenditure of Rs 77.94 million on Walk-in-Aviary as the CDA failed to complete the project despite lapse of 36 months that was supposed to be self-maintained and revenue generating project.


The auditors also detected wasteful expenditure of Rs 409.19 million at Parade Ground, irregular restoration of plots to a firm in sector G-9 against the by-laws, irregular auction and allotment of plot worth Rs 235.82 million in various sectors and the Orchard and Agro Farm Scheme.


The report also highlighted the allotment of 6,400 plots to illegal occupants of CDA acquired land worth Rs 18 billion in Kuri and Rehara villages of the federal capital. It has also been detected the illegal occupation of land measuring 352 kanals worth Rs7 billion by the National Police Foundation.


Among other irregularities found out by the CDA included exaggerated assessment of built-up properties worth Rs 1.83 billion, non-recovery of Rs 720 million income tax, property tax valuing Rs 924 million, Rs 1 billion fine imposed on non-conforming users, fictitious approval of layout plan and issuance of NoC to National Police Foundation involving Rs 2.4 billion, CDA's failure to construct flats in sector I-15 involving Rs 8.6 billion and loss due to announcing illegal award of possession CDA land measuring 2,909 acres in Kuri and Rehara villages.


The audit report revealed that the Member Engineering and Member Estate of the CDA did not produce record of around 23 projects despite several requisitions.The audit report also suggests corrective measures like award of independent work as an additional work to mobilized contractors, launching projects after proper planning, exploit revenue opportunities, revalidate all expired leases, follow due process of hiring and ensure obtaining bank guarantees and insurance from contractors.




Courtesy: Nation


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