Ashiana Housing: Two brothers of Paragon City CEO arrested

By our correspondent

LAHORE: In a major development in Ashiana Housing scandal, National Accountability Bureau (NAB) on Friday arrested two brothers of Paragon City CEO) Nadeem Zia.

The anti-graft watchdog arrested Muneer Zia and Umar Zia after the investigation in the land scam was extended, media reported.

Umar is a member of the Paragon’s board of directors, while Munir is a partner of Shahid Shafiq – CEO of Bismillah Engineering Services.

On the other hand, an accountability court on Friday extended physical remand of Lahore Development Authority (LDA) former DG Ahad Cheema and Shahid Shafiq by May 18. However, the court sent other accused, including Bilal Qadwai and Imtiaz Ahmed on judicial remand.

The NAB officials produced the accused before the court amid tight security as heavy contingent of police cordoned off the court premises.

The NAB prosecutor told the court that Cheema investment Rs 40 million in a private college in Dera Ghazi Khan and also purchased residential property in Islamabad.

On the other end, Cheema’s counsel argued that his client was NAB’s custody for over 80 days, but no evidence had been presented against him.

Previously, the NAB had informed the court that the Punjab government had already developed Ashiana Housing Scheme. However, changes were made in the scheme just to sponsor Paragon City. Moreover, the LDA awarded the contract in violation of given rules and regulations. The project cost was Rs14 billion but development work on ground was only worth Rs15 million.

As per NAB, Cheema was arrested on the charges of power abuse and, with criminal intent, processing and awarding Ashiana-e-lqbal project contract worth Rs14 billion to Lahore CASA Developers, a joint venture a firm which was ineligible for the same. The contract, in connivance with other accused persons, was awarded in violation of PPP Act, 2014.

The NAB inquiry further revealed that Bismillah Engineering Services Co (a major shareholder of JV titled Lahore CASA Developers) was a proxy firm working on behalf of Paragon City (Pvt) Ltd.

Cheema allegedly received illegal gratification in the form of 32 kanals of land valuing Rs30.09 million approximately from the owners of Paragon City (Pvt) Ltd.