Transparency International Pakistan has calculated that 321.3 kanal land purchased by Employees' Old-Age Benefit Institution (EOBI) from Defense Housing Authority (DHA) at a price of about Rs 16 billion amounts to making an unbelievable payment of approximately Rs 49 million per kanal which is many times higher than the market value of the property.
In a letter sent to the Chairman, EOBI, Zafar Gondal, Adviser Transparency International Pakistan, Syed Adil Gilani has referred to allegations of purchase of 321.3 kanals of land from the Defense Housing Authority (DHA) at an unbelievably exorbitant price of about Rs 16 billion without inviting public tenders thereby causing a loss of Rs 15 billion to EOBI. The current market rate for a residential plot of one kanal in DHA (old commoner town) is reported to be in the range of Rs 3 to 3-1/2 million.
Listing at least 13 allegations in this regard, Adil Gilani said that Employees' Old Age Benefit Institution had been informed by Transparency International Pakistan many times in the past that all procurements including procurement of property has to be made by EOBI only in compliance after permission by its Board of Trustees, which shall also comply with the EOBI Act, and PPRA Ordinance and Public Procurement Rules 2004.
He highlighted that Lahore High Court (LHC) in the WP No 1579 of 2012 on March 22, 2012 had declared that "all acts and things done after April 18, 2010 when the 18th Amendment became a part of the constitution with reference to Act No XVII of 1976 including issuance of Notification No 4-10/2011-mm-I dated July 20, 2011, Notification No S.R.O. 121(1)/20100 dated January 3, 2012 and all acts done pursuant to the said notifications are declared to be violation of the Constitution without lawful authority and of no legal effect."
Transparency International Pakistan referred to the landmark judgement announced by the Chief Justice of Pakistan on March 30, 2012 in the Human Rights Case No 7734-G/2009 & 1003-G/20l0, alleged corruption in Rental Power Plants, and Human Rights Case No 56712/2010, fraud in payment of Rental Power Plants detected by NEPRA. The Court had ordered that the words 'transparency' and 'accountability' are of high importance and cast a duty upon the authority who had invited the bids to ensure openness of the transaction without withholding any information.
The competition to establish transparency between the interested parties is in fact the theme of the PEPRA Ordinance as well as the rules framed there under (Public Procurement Rules, 2004). The bidders have to compete with each other by filing their respective bids. All the RPPs awarded in 2006 and 2008/9 were declared as non-transparent, illegal and void ab initio, and consequently, the contracts of RPPs were ordered to be rescinded forthwith and all the persons responsible for the same are liable to be dealt with for civil and criminal action in accordance with law.
Adil Gilani requested the Chairman, EOBI to confirm whether the allegations of purchase of 321 kanal land from DHA at Rs 16 billion are correct or not. "In case the allegations are correct, kindly provide a copy of the contract agreement and evaluation report as per requirement of Rule No 48 to Transparency International Pakistan and also to Chairman, NAB under NAO 1999 Section 33 B, as these documents which are mandatory to be posted on PPRA website are not available on PPRA website". He also stated that July 8, 2008 Defense Housing Authority Islamabad signed an agreement with M/s Elysium Holdings Pakistan Limited.