PAC seeks report from CDA on selling land for peanuts

ISLAMABAD: The Public Accounts Committee (PAC) on Wednesday sought a report from the Capital Development Authority (CDA) on selling land at cheap rates.
The PAC issued the directive that the report should be submitted in the next meeting.The CDA sold the land, adjacent to the Convention Centre, to a private party at a price of Rs4.8 billion, with installments to be paid in 15 years but so far out of Rs4.8 billion only Rs977 million have been paid.
The PAC held its meeting with its Chairman Syed Khursheed Shah in the chair. In the meeting, the audit paras for the financial year 2011-12 relating to the CDA were examined.The audit officials told the committee that silver was being sold at expensive rates while gold and diamonds were being sold at cheaper prices.
Officials of the National Accountability Bureau (NAB) told the committee that it had completed its inquiry report regarding the sale of the costly land to a private company in 2005 for the construction of the Grand Hayat Hotel at low rates and it would be presented to the NAB Executive Board by the end of the current month for further consideration. CDA Chairman Maroof Afzal told the committee that in 2005, an area of 13.5 acre of land was sold to a private company, BNP, after the pre-qualification process in which five companies were selected.
CDA chairman told the PAC that the BNP was the higher bidder that gave bid at the rate of Rs75,000 per square feet that translated into Rs4.8 billion. Under the agreement, they have to pay 20 percent immediately while remaining 80 percent in the span of 20 years in easy installments.
He said that in 2007, the company approached the CDA for rescheduling as they said the building code had been changed following the earthquake and they have redesigned new building code so the CDA referred it to the Economic Coordination Committee of the Cabinet which directed that the CDA had a power of rescheduling itself.
CDA chairman said that so far the private company had only paid Rs977 million to CDA out of Rs4.8 billion.He admitted that this particular case had already been referred to Federal Investigation Agency and NAB for probe regarding making such a deal.
PAC Chairman Syed Khursheed Shah inquired from the CDA whether it was not correct that the private company had not paid dues of the CDA but got the loan of Rs1.5 billion from Punjab Bank after mortgaging the land.
PAC member, Junaid Anwar Chaudhry termed it a security threat because important buildings were located on the Constitution Avenue, including the Supreme Court building, the Parliament and Diplomatic Enclave.
PAC Chairman Syed Khursheed Shah directed the CDA chairman to submit the complete report on this issue in the PAC’s next meeting.Meanwhile, the PAC had deferred the issue of Gun Club till the decision of the Supreme Court where the case was pending since 2014.
CDA Chairman Maroof Afzal gave presentation to the PAC on the Gun Club and stated that a land of 145 acres was allotted to Pakistan Sports Board (PSB) in 1977 and the total cost of the land was Rs736,600 at the rate of Rs5,060 per acre.
He said that in 2000, the 9th SAF Games were proposed to be held in Islamabad and a steering committee was constituted which reserved 44 acres for shooting ranges at the PSB out of allocated 145 acres of land.
He told the committee that as per plan of the zone known as Sports and Recreational Zone, the area was meant for sports activities and therefore, the allocation of the land for Gun Club would be as provision of Master plan of Islamabad. The shooting ranges were constructed in the sports zone where present Gun Club was established.
The CDA chairman told the committee that on January 27, 2011, the Sports Ministry forwarded the proposed amendment in Gun Club Resolution 2002 to PSB seeking its comment and the PSB issued NOC qua aforesaid amendments on January 27, 2011 and the Gun Club was mandated to directly deal with the CDA inter alia qua its land-related issues.
Consequently, he said the request for formal allotment of 72 acres of land to the Gun Club was received via Ministry of Sports on April 14, 2011. The CDA Board in its meeting held on May 11, 2011 approved the formal allotment of 72 acres of land to Gun Club with condition that Finance wing may propose lease amount and Annual ground Rent in line with CDA policy upon regularisation of this land from 2001 to date at the current prevailing rate. The news appeared in the Daily Jang on August 1, 2011 regarding allotment of land to Gun and Country Club on concessional rate on which the Supreme Court took a suo motu notice. No formal allotment since then had been made for Gun and Country club since the matter is sub judice before the Supreme Court of Pakistan, he told the committee.
He further told the committee that the major construction work took place in 2001. “The CDA issued notice to PSB on February 8, 2013 for unauthorised construction of various buildings/facilities by PSB without approval of the CDA,” he said.
On the query of PAC Chairman Syed Khursheed Shah, the CDA chairman said that though the Gun club was a corporate body, it was administered by the government of Pakistan through Capital Administration and Development Division as president of Pakistan was a patron and the government nominated the administrator.
PAC Chairman Syed Khursheed Shah directed the CDA to present both the lease agreement that was signed between CDA and PSB.The PAC chairman said that it seemed the PSB owned the land and it had given it to Gun Club which meant that this issue did not relate to CDA.