State land’s allotment to PSP workers causes Rs5 bn loss to kitty

KARACHI: Allotment of a state land to Pakistan Sarzameen Party (PSP) workers and sympathizers by Karachi’s former mayor Mustafa Kamal caused a loss of Rs5 billion to the national exchequer, it has been learnt.

The land measuring 50 acres was reserved for ‘greater Karachi sewerage plant’ and its market price was Rs4.5 billion at the time of allotment, Official documents of Inquiries and Anti-Corruption Establishment, Sindh show.

The estimated cost of the plant was Rs4 billion which has now risen to Rs5 billion. The current market value of the allotted land is now Rs5 billion.

Earlier in January this year during a hearing in the Supreme Court, secretary Sindh Local Government submitted a report on illegal allotment of the plant land.

The top court ordered the Sindh chief secretary to take an appropriate action.

The matter was then transferred to the Inquiries and Anti-corruption Establishment for investigation.

In this regard, a notice was issued to Mustafa Kamal to join investigation.

Kamal appeared before the Inquiries and Anti-Corruption Establishment Deputy Director Zameer Abbasi on last Wednesday and was handed over a questionnaire.

Sources in the ACE confided to The News that the land was allotted illegally to MQM workers and sympathisers to get lead for the party in elections.

Documents further revealed that the Karachi Municipal Corporation (KMC) also issued lease certificates the MQM workers and sympathisers due to political pressure.

ACE sources told The News that the role of KMC officials was also being investigated and officials would also be called for inquiry.

On Thursday, a former officer of Karachi Water and Sewage Board and an accused in the same matter in his confessional statement before the Inquiries and Anti-Corruption Establishment (a copy exclusively available with The News) confessed illegal allotment of the said land allegedly on gunpoint by Mr. Kamal and his former party fellows.

This officer (whose identity is being kept secret for his security) in his statement further revealed that Mr. Kamal allegedly appointed dozens of his party workers in the Water and Sewage Board, installed illegal water hydrants and distributed water to his favorite areas and others.

Anti-Corruption department authorities termed the revelations of this officer a big achievement.

Talking to the media, Mustafa Kamal rejected all the accusations and said he was being punished for his efforts to develop Karachi.

Kamal added that the plant’s around 50 acre extra land was allotted for resettlement of people affected by Preedy Street project and in this regard the city council had in 2008 adopted a resolution on allotment.

Rejecting all the accusations, PSP leader Raza Haroon told The News that Mustafa Kamal had received a questionnaire and would submit his response after consulting with his legal advisers.