FIA arrests CAA officials for land lease fraud

Karachi
The Federal Investigation Agency’s Anti-Corruption Circle, Karachi has unearthed a scam within the Pakistan Civil Aviation Authority and arrested its directors and other officials.
FIA deputy director Jawed Akber Riaz said on Friday that they had arrested air commodore (retd) Gulzar Ahmed Janjua, who had remained the director and chief of the Aviation Security of the Pakistan Civil Aviation Authority, CA Headquarters and also the president of the CA Club, Karachi.
The others who have been arrested include Mohammed Shakoor Abbasi, the senior joint director finance disbursement of the CA Headquarters and the treasurer of the CA Club, Karachi; Shaikh Mahboob, the assistant director electronics of the CA Headquarters and a senior administration officer of the CA Club; and Mohammad Raza, the chief executive officer of Al-Mubarrak Caterers and Decorators.
The FIA deputy director said these men were arrested following an inquiry conducted by the agency’s Anti-Corruption Circle, Karachi.
It was found that the retired air commodore, during his time as the director and chief of the Aviation Security of the Pakistan Civil Aviation Authority, CA Headquarters and the president of CA Club, Karachi, had caused losses worth millions of rupees to the public exchequer on account of criminal omissions and commissions worth millions he received for awarding the contract of a PCAA land - a jogging track of CA Club measuring 19,066 square yards - in collusion with the co-accused Mohammad Shakoor Abbasi and Shaikh Mahboob to Mohammad Raza, the CEO of a catering company.
The official added that as per the “Rules and By-Laws (January 2000)” of the CAA Club prevalent between July and September 2011, all assets and land of the club were the property of the Pakistan CAA.
During this period, as per the CAA Order 11-4 dated January 5, 1990 and the “Specimen of Tender Documents and License Agreement” dated September 20, 2003, the rules and regulations for awarding the contract of the PCAA land on commercial concessions on a licence (monthly rent) basis were: all commercial licences will be disposed of through inviting tenders after wide publicity in the newspapers, the tender committee will compose of the zonal manger, the concerned airport manger and the senior most finance officer, the security deposit will be fixed to an amount equal to three month’s licence fee, the tenders in a sealed cover will be dropped in a sealed box, the box and tender will be opened by the tender committee and the contents will be tabulated in the form of a comparative statement to be forwarded to the competent authority along with the recommendations of the committee for consideration and then the minutes of the meeting of the committee will be recorded and signed by all parties concerned for obtaining the approval of CA Headquarters or otherwise.
However, the FIA official said, no officer of the CA Club was competent to award the land on a licence basis.
The retired air commodore, being the then president of the CA Club, Karachi, awarded the contract of the jogging track of the club in July-August 2011 to Al Mubarak Caterers and Decorators for five years on a license agreement by means of fraud and corrupt practices in violation of the rules and regulations of the PCAA. He was neither a member of the tender committee, nor any formality for awarding the contract and tender was observed.
The official said Gulzar Ahmed plotted the scheme by calling quotations from selected caterers on July 28, 2011 and by abusing his official position, opened the quotations and offers himself.
In this connection, he prepared fake and bogus quotations of Prince Pakwan, Karachi and Rajput Caterers and Decorators and treated them as genuine in collusion with the co-accused, Mohammad Shakoor Abbasi and Shaikh Mahboob, and awarded the land to Al-Mubarrak Caterers and Decorators for five years on an annual subscription of Rs1,800,000 per year with an increase of 10 percent per annum whereas World Catering Services had offered an annual subscription of Rs4,800, 000 with an increase of 10 percent each year.
In this manner, a loss of Rs1.83 million was caused to the public exchequer.