A corruption scandal involving billions of rupees has been unearthed in Employees Old-Age Benefit Institution (EOBI), a subsidiary of the Ministry of Human Rights and Overseas Pakistanis, which caused a loss of millions to the exchequer, reported 24NewsHD TV channel on Tuesday. 

The Federal Investigation Agency (FIA) launched an inquiry after seven audit paras came to light. 

According to the audit report, the contract for the Old Age Multiplex Hall in I-8 was awarded for more than estimated cost. PEC and engineers had estimated a cost of Rs2 billion, but EOBI awarded the same project at Rs3 billion with a 45 percent cost overrun. 

Moreover, scams were also reported in the project to link the EOBI building to the central AC system. 

The report further states that a company offered Rs71 million for the AC system and it had to furnish the complete building with AC in four months. However, EOBI installed the same system in Rs80 million which could not be operational for three years. 

Similarly, EOBI's Sialkot residential project for pensioners in Sialkot was also rife with irregularities. The project was started in 2014, and only 45 percent of the work has been completed so far, despite paying any additional cost overruns to the contractor for the project.

The report also added that the total cost of the project was Rs67 million, which has now been treble. 

The project also reported the incompetence and collusion of both the consultant and the construction company. 

Public Accounts Committee (PAC) has also tasked the FIA separately to investigate the matter. 

FIA directed all concerned zones to submit reports on EOBI cases, adding that the investigation should be finished and submitted in accordance with the Public Accounts Committee's directions.

Reporter: Tayyab Saif