- Private banks were allegedly paying huge interests to influential people in the government of Gilgit-Baltistan.
In an apparent unlawful move and violation of set rules, administration in Gilgit-Baltistan has held billions of rupees worth compensation funds of Diamar Bhasha Dam in private banks instead of the National Bank of Pakistan (NBP), with the intention of pocketing huge interests secretly.
According to reliable sources, the district administration of Diamar, which is responsible for disbursement of the compensation amount, has been depositing the fund in current accounts of private banks instead of a profitable account at the NBP. The private banks were allegedly paying huge interests to influential people in the administration and the government of Gilgit-Baltistan.
Sources at the Water and Power Development Authority (WAPDA) said that Rs 58.27 billion out of the Rs 64.88 billion, allocated for land accusation and compensation for assets, have so far been released to the district administration.
The huge amount being distributed among dam’s affectees since 2012 have been deposited in private banks despite the fact that government must pay a markup on the billions of rupees loaned from various sources for land acquisition of the mega project.
According to a source in the WAPDA, who did not want to be named, the project director of Diamar Bhasha Dam had written multiple letters to the administration and federal government informing the malpractices on the part of the administration but all in vain. The project director had asked the local administration to keep the huge amount deposited in the profitable account of NBP until their disbursement to affectees to pay the interests to the government for repaying the markup set by lenders. “WAPDA usually submits the interests of fund if disbursement/use of the amount is delayed for various reasons,” he said.
There were around Rs 12 billion at the local administration for court stay or dispute among affected people by the dam construction.
Following the complaints about the malpractices, Federal Minister for Water and Power Khwaja Asif, during a meeting held in Islamabad, asked the regional government and administration of Diamar district to immediately deposit the amount in the NBP.
Talking to Pakistan Today, Secretary Water and Power Younus Dhaga said that the ministry had directed the GB government to end the wrong practices instantly when the ministry had come to know about the issue. “We were later informed that remaining compensation amount would soon be deposited in the official bank. I will take up this issue with regional government, again,” he said.
The deputy commissioner of Diamar did not respond despite repeated attempt to get his version on the issue. There are reports that the office of the deputy commissioner always remains crowded with the employees of private banks.
The administration has been keeping the funds in private banks even though people frequently hold demonstrations in Diamar to protest the non-payment of compensation for their land being affected by the project.
Sources said that federal government should investigate the matter by constituting parliamentary committee as the vested interests are playing with the $14 billion project, which is now being included in the China-Pakistan Economic Corridor (CPEC) after getting a red signal from other international lenders.
