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The Public Accounts Committee (PAC) has uncovered a non-transparent auction of 29 commercial plots valued at Rs 37 billion by the Capital Development Authority (CDA).
During the review of audit paras for the Ministry of Interior’s subordinate institutions for the fiscal year 2023-24, members expressed their displeasure over the absence of key officials, including the Inspector General of Frontier Corps (IG FC) Khyber Pakhtunkhwa, the Director General (DG) of Sindh Rangers, the DG of Gilgit-Baltistan Scouts, and the DG of Pakistan Coastal Guards. In response, the PAC chairman postponed the discussion on these paras.
The meeting, chaired by Junaid Akbar, took place at the Parliament House, where the audit paras of the Ministry of Inter-Provincial Coordination for the fiscal year 2023-24 were discussed. One of the key issues raised was the unauthorized grant of over Rs 13 million to an unrecognized sports organization in the fiscal year 2022-23.
Audit officials clarified that this entity was not a legitimate sports body but merely an event organizer. The Secretary of the Ministry of Inter-Provincial Coordination informed the committee that an inquiry had been conducted in the Departmental Accounts Committee (DAC) to identify those responsible. As a result, the PAC chairman directed that the amount be recovered within 15 days to resolve the matter.
Another significant issue brought up was the possession of unlicensed weapons and ammunition by the Gun and Country Club. Committee member Syed Hussain Tariq questioned how a government institution could acquire weapons without a license, expressing serious concerns.
The PAC chairman noted that the club had initially resisted coming under the jurisdiction of the Ministry of Inter-Provincial Coordination. He subsequently ordered an inquiry into the matter, directing that a report be submitted within a month.
Additionally, the committee reviewed an audit para concerning the Gun and Country Club’s failure to deposit an additional balance of Rs 480 million into the Sports Endowment Fund account. In light of this, the PAC chairman mandated a complete audit of the club and instructed officials to submit a report within a month.
Later, the meeting examined the audit report of the CDA for the fiscal year 2023-24, revealing the non-transparent auction of 29 commercial plots. Audit officials reported that the CDA Board had approved the auction of these plots, worth over Rs 37 billion, with five plots postponed and one entangled in legal complexities. They questioned why legal considerations were not taken into account at the time of approval.
The PAC chairman further inquired why the CDA had not prepared its financial statement. Audit officials explained that, under the CDA Act, the authority is required to submit its financial statement to the federal government after verification by a chartered accountant. Failure to comply with this ordinance could lead to imprisonment.
The committee was also informed that the CDA had never prepared a financial statement before. The financial member of the CDA stated that they were now working on the financial statement for 2023-24. Frustrated by this revelation, PAC members strongly criticized the CDA for failing to meet this fundamental requirement and deemed the chairman’s attitude inappropriate. Consequently, the PAC ordered the CDA to submit its financial statement within six months.
The meeting also scrutinized an audit para regarding the Ministry of Interior’s procurement of uniforms at excessive prices, which resulted in a loss of over Rs 46.12 million to the national treasury. Committee members expressed their displeasure over the absence of the IG FC Khyber Pakhtunkhwa.
Committee member Sher Arbab emphasized that the IG FC should have been present. In response, the PAC chairman instructed the Ministry of Interior to recover the amount within a month and submit a report on the actions taken against those responsible.
Another audit para highlighted the non-transparent purchase of cameras by FC Khyber Pakhtunkhwa, causing a loss of over Rs 30 million to the national exchequer. The PAC directed that all FC-related audit paras be consolidated and the amount recovered accordingly.
The committee also reviewed audit paras related to the Gilgit-Baltistan Scouts, including the irregular procurement of medical equipment worth over Rs 53 million. Members expressed their dissatisfaction over the absence of the DG. Similarly, due to the absence of the DG Rangers Sindh, the PAC postponed the audit paras concerning the Sindh Rangers.
The committee also examined an audit para regarding the Bahria Enclave Bypass construction project, which was awarded through direct contracting at inflated prices, leading to procurement irregularities. Audit officials reported that during the construction, two people lost their lives in separate incidents.
The CDA chairman stated that the Bahria Enclave Bypass in Islamabad was constructed under emergency orders from the Prime Minister’s Office. However, audit officials questioned the justification for direct contracting, pointing out that the project was awarded to the National Logistics Cell (NLC) under emergency circumstances.
Although it was originally scheduled for completion in four months, 11 months had passed, and the project remained unfinished. The PAC chairman instructed the CDA to submit a comprehensive report on the matter within a month.
