CDA kitty suffers over Rs28 bn loss

ISLAMABAD: Irregular allotment of plots to the employees of the Capital Development Authority (CDA) in posh sectors of the capital and the encroachment of land by different business groups caused a loss of over Rs28 billion to the authority, the Public Accountability Committee (PAC) learnt to its surprise during a briefing by the Auditor General of Pakistan here on Tuesday.
The irregular allotment of plots alone caused a loss of Rs20 billion to the authority. According to details presented by the audit officials in the Public Accounts Committee, Member Estate, Capital Development Authority, has created 800 additional plots in Sector I-8 and 3,187 plots in sectors 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 the admissible 5 percent quota reserved for CDA employees as provided in the Land Disposal Regulations, 2005. This resulted in the irregular allotment of plots and a loss to the authority to the tune of Rs20 billion.
The PAC met under the chairmanship of Syed Khursheed Shah in which the audit paras relating to the Cabinet Division with regard to the Capital Development Authority for the financial year 2011-2013 were examined.
The CDA replied that the plots were allotted in sector I-8 (Phase-1) to its employees in lieu of the plots utilised in sectors D-12 and E-12 by the Federal Government Employees Housing Foundation while the plots in other developed sectors were allotted in the light of the memorandum of settlement signed by the CDA management with the collective bargaining agent (CBA) in accordance with section 5(2) of the Land Disposal Regulations, 2005.
Auditor General of Pakistan Buland Akhtar Rana observed that it was a mega scandal as plots were allotted to CDA employees in the I-8 sector, which is commonly known as a VIP sector. “I say this not because that I did not get any plot but all these plots were allotted in developed sectors against the rules and regulations under which plots are offered to CDA employees in undeveloped sectors, so all these allotments are illegal,” he said.
However, CDA Chairman Maroof Afzal defended the allotment of the plots to CDA employee saying 800 additional plots were created without changing the plots allocated for mosques, parks and schools.
On this, the PAC sought the details of the allotment of plots and a map of the 1-8 sector from the CDA to examine how an additional 800 plots were created.Another mega encroachment scam came to the notice of the PAC as the audit officials told the committee that the Islamabad Marriott, Serena and Shifa International Hospital have encroached CDA land.
The audit officials told the committee that CDA land measuring 10,067 square yards was encroached by Marriott Hotel in F-5, 14,000 square yards by Serena hotel in G-5 and the hotel authorities constructed car parking on the CDA’s land without a formal lease agreement. “The CDA neither removed the encroachment nor recovered the cost of the plot/rent from hotels at the market rate which resulted in a loss of Rs1.05 billion (Rs1058.95 million).
The audit found that CDA land measuring 14,410 sq yards was occupied by Shifa International Hospital Islamabad as pointed out vide Building Control section-111, CDA letter No CDA/DD/(BCS-111)/Shifa-Intl/H-8/2007/1006 dated October 10, 2007 and the land of the authority was encroached upon by the hospital for the last 15 years. The medical collage and car parking were constructed illegally in total disregard to CDA bye-laws without any formal lease/deed agreement.
The audit officials told the PAC that the CDA has suffered a loss of Rs5.15 billion on account of the cost of land at the prevailing market rates.Audit official also said that the Director Municipal Administration CDA granted a licence to M/s Capital View Point for a restaurant at Gokina Viewpoint, Pir Sohawa, Islamabad in November 1999 on land measuring 16’x35’for one year, extendable on a yearly basis.
The audit observed that the licensee of the restaurant constructed a structure measuring 196.66 sq yards which was beyond the approved site plan and in violation of covenants by the licensee, and the CDA neither removed the unauthorised construction nor cancelled the licence as required under the conditions of the licence.
Replying to audit objections, CDA Chairman Maroof Afzal told the PAC that is team physically inspected the site and it was found that the Serena Hotel did not encroach the land of the CDA.
However, the Auditor general of Pakistan observed that if the land is re-measured then the encroachment would be proved. “If the land is utilised by the hotels then they should pay rent,” he said.
Chairman PAC Syed Khursheed Shah directed that that the CDA, audit department and revenue department should measure the allocated land of the hotel and present the report to the committee within 15 days.The committee was also told that six plots were auctioned in the Blue Area and over Rs2 billion loss was inflicted on the CDA.The chairman PAC sought a report on this issue from the CDA within 15 days.