NAB summons Shahbaz over Ashiana Housing Scheme probe

ISLAMABAD: National Accountability Bureau's (NAB) Lahore Regional Office summoned Punjab Chief Minister Shahbaz Sharif on January 22 with regard to an inquiry into Ashiana-e-Iqbal Housing Scheme.

The Lahore NAB has been conducting an inquiry against management/officials of Punjab Land Development Company (PLDC), Lahore Casa Developers, Lahore Development Authority (LDA) and others under section 19 of the NAO, 1999 in Ashiana-e-Iqbal project.

In a notice addressed to Punjab Chief Minister Shahbaz Sharif for inquiry, the Lahore NAB asked him to appear before its combined investigation team on January 22 as prima facie being a chief minister he ordered the actions without lawful authority, in sheer violation of laid down procedures for functioning Punjab Land Development Company and by unlawfully assuming functions of board of PLDC, which resulted in huge loss to the national exchequer.

In a notice letter to Punjab chief minister, Lahore NABstated that being Punjab chief minister, he ordered cancellation of award of contract of Ashiana-e-Iqbal to successful bidder M/s Ch Latif and sons, leading to award of contract to M/s Lahore Casa Developers (JV) a proxy group of M/s Paragon City (Pvt) limited, which resulted in loss of Rs193 million approximately.

The second allegation was leveled against the Punjab chief minister in a NAB notice, “You directed PLDC to assign the project of Ashiana-e-Iqbal to Lahore Development Authority (LDA) resulting in award of contract to M/s Lahore Casa Developers (JV), thus causing loss of Rs715 million approximately and ultimately failure to complete the project.”

Third allegation on which the NAB wanted to ask Punjab Chief Minister Shahbaz Sharif as to why he directed PLDC to award consultancy services of Ashiana-e-Iqbal project to M/s Engineering Consultancy Services Punjab (ECSP) for Rs192 million approximately whereas actual cost was Rs35 million as quoted by Nespak.

Meanwhile NAB Chairman Justice (R) Javed Iqbal took notice of corruption and embezzlement in the construction and expansion of Kachhi Canal and ordered inquiry for increasing the construction cost of Kachhi Canal from estimated Rs30 billion to Rs210 billion due to corrupt practices.

According to complaint received in the NAB, cost of the project was escalated due to corruption and embezzlement in the construction and expansion of Kachhi Canal.

Kachhi Canal is a 363-kilometre-long waterway which takes off from Taunsa Barrage in Muzaffargarh district of Punjab and ends in Dera Bugti district of Balochistan.

The project was started during the tenure of General (R) Pervez Musharraf in 2002 and is said to help irrigate 72,000 acres of land.

It is to be mentioned here that the Public Accounts Committee (PAC) in its meeting last month also took notice of increase in cost of the project due to delay in its completion with the complaints of embezzlements of funds and corruption.

NAB chairman also ordered conducting inquiry against Director General Public Relations, Officers of Information and Culture Department, Punjab for misusing their authority and causing millions of rupee loss to national exchequer.