The audit authorities have detected financial embezzlement, mismanagement, irregularities and losses worth Rs 19.23 billion in accounts of the Capital Development Authority (CDA) during the outgoing fiscal 2013-14. The audit authorities have raised 52 audit objections to the CDA's accounts related to fraud/misappropriation, performance and internal control weakness.
The audit found that the CDA land measuring 1,342 kanal, 11 marlas in village kurri was encroached by a private housing scheme named Behria Enclave and 200 kanal land over which the same housing society constructed road is still in unauthorised possession of the Bahria enclave housing scheme.
According to a report prepared by Tehsildar CDA, more than 1500 kanal CDA land located in 85 Khasras was encroached by the private housing society. Audit further noted that Directorate enforcement CDA issued last notice to the management of the society on November 7, 2012 to vacate the CDA land within seven days but no action for eviction was taken. This resulted in non-taking over of possession of precious CDA land from private housing society valuing Rs 2,313.82 million.
The audit report has detected that director industrial planning CDA leased out 29 industrial plots in sector I-9/2 and 13 residential plots in sector I-9/4 to carrier telephone industries. On privatisation of the CTI in 2005, Siemens Pak acquired 18 industrial and 3 residential plots. Remaining plots were handed over to the CDA by Siemens. Audit observed that these plots were not disposed of through open auction. A report dated February, 20 2013 by surveyor of CDA disclosed that the plots were under possession of Telecom Foundation. This resulted in non deposal of plots for Rs 4456.00 million.
Audit noted that director housing societies planning wing CDA transferred land measuring 2605 kanals to various societies in sector E-11 whereas the societies collectively got the possession of 3063 kanal as recorded in the minutes of meeting held on June 12,2007. Audit observed that housing societies encroached upon 456 kanal, which was owned by the CDA. The record of the directorate was silent about the retrieval of the CDA land from the housing societies this resulted into non retrieval of CDA land from housing societies valuing Rs 2290.00 million.
Audit found that director planning CDA did not cancel the allotment of industrial plot for not establishing the manufacturing industry during last three decades due to lack of monitoring. Audit observed that allotees were in operation of commercial activities such as wedding hall, market, show room and university on the industrial plots in violation of lease and CDA bye laws. This resulted into non imposition/recovery of commercialisation charges amounting to Rs 2285.33 million.
The report also pointed out that directorate of water supply CDA allowed replacement of machinery including power motors, submersible pumps, M S pipes of 135 tube-wells in different locations of the city through a private agency under Memorandum of Understanding (MOU) signed by the then chairman CDA and USAID without any lawful authority. Further approval and NOC of the government was not sought before entering into such memorandum of understanding.
Audit observed that the existing machinery was handed over to the private agency as salvage condemned material without preparation of survey report and calculation of depreciated value of machinery of existing tube wells. Replacement of functional machinery of superior quality with lower capacity motors, equipment without declaring existing machinery condemned through the authorised forum is irregular and unlawful. This resulted in unauthorised replacement and disposal of machinery of the operational tube wells for Rs 819.45 million.
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