PAC reviews audit objections against CDA, grants four months for recovery of dues

A meeting of the Public Accounts Committee (PAC), chaired by Acting Chairperson Shahida Akhtar Ali, reviewed audit objections for the year 2023–24 relating to the Ministry of Interior, with a focus on financial irregularities and non-recovery of dues by the Capital Development Authority (CDA).

During the meeting, audit officials highlighted objections regarding the non-collection of fines from housing societies that failed to complete development within the stipulated time.

The audit authorities informed the committee that the CDA had approved letters of permission (LOPs) for 50 housing societies and issued no-objection certificates (NOCs) to 24 societies. These societies were required to complete development within three to six years but failed to do so. As a result, fines amounting to Rs2.3 billion were to be imposed. However, CDA officials stated that only Rs45 million had been recovered so far. Audit officials warned that public investment was at stake.

Chairman CDA informed the committee that the High Court had issued a stay order on the recovery of Rs410 million and requested four to six months to recover the remaining amount. The committee subsequently granted CDA four months to ensure recovery.

The meeting also discussed serious audit objections related to bogus allotments of plots in Islamabad. Audit officials revealed that CDA had suffered a loss of Rs1 billion due to suspicious allotments of 43 plots in different sectors. It was disclosed that when records were demanded, two files were said to be with the Federal Investigation Agency (FIA), while 41 files were missing. The case was referred to the FIA, the Interior Secretary confirmed.

Expressing concern, Senator Afnanullah Khan questioned how records of 43 plots could disappear. FIA officials informed the committee that 37 accused had been arrested and a challan had been submitted to the court.

They added that the accused included CDA officers of grades 18 and 19. FIA officials further revealed that the files were bogus, the allotments were fake, and the plots did not exist. CDA officers were also involved in the scam.

Committee members asked who was the chairman of CDA during the period in question. The PAC postponed the audit objection, citing that the matter was under investigation by the FIA, but directed that the name of the CDA chairman serving at the time should also be mentioned. Acting Chairperson Shahida Akhtar Ali noted that the issue had been ongoing for the past 13 years.

Separately, the committee reviewed an audit objection regarding the non-recovery of Rs230 million in extension charges by the CDA. Officials stated that the matter involved two cases: Centaurus and Grand Hyatt. Chairman CDA informed the committee that the plot of Grand Hyatt had been cancelled and the case was pending in court, while CDA officials said that Rs148 million in dues from Centaurus had been recovered. They also noted that the third tower of Centaurus had not yet been constructed.

Following the briefing, the PAC disposed of the audit objection related to extension charges.