AGP takes notice of 100-acre land allotment to KIA Lucky Motors

Audit suspects nepotism in one of the largest industrial areas in Karachi which resulted in a loss of Rs813m

ISLAMABAD: The Auditor General of Pakistan (AGP) has directed the National Industrial Parks (NIP) to submit a comprehensive inquiry report regarding the allotment of 100 acres of land given at an old price to M/s KIA Lucky Motors at Bin Qasim Industrial Park (BQIP).

According to details, the AGP, in its audit report for 2020-21, stated that Pakistan Industrial Development Corporation (PIDC) being the holding company would review the already conducted inquiry into this matter and submit a comprehensive report within two months.

The auditor is of the view that undue favour was extended to KIA Lucky Motors, which paid Rs18 million per acre instead of the new price of Rs26 million per acre, resulting in a loss of Rs813 million. 

During the National Industrial Parks Development & Management Company (NIPD & MC) audit for the year 2018-19, it was observed that NIP’s Board of Directors (BoD) expressed serious concern over the findings of an initial inquiry report against ex-NIP CEO Mudassar lqbal for the allotment of 100 acres of land of BQIP to KIA Lucky Motors on the recommendation of the Allotment & Procurement Committee which was contrary to directives of the NIP BoD.

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Mudassar lqbal had assured KIA Lucky Motors that they will not be charged more than the old price.

The document states that the audit reported this matter to the management whereas the irregularity was also discussed in the Departmental Accounts Committee (DAC) in January this year; however, the management did not provide any record despite the fact that it was agreed upon during the meeting.

It is pertinent to mention here that only the Board is authorised to accord approval to plot allotments.

It was further observed that as per NIP’s letter dated January 23, 2017, the said plot was allotted to KIA Lucky Motors on the condition that the company would deposit Rs630 million in line with the pre-defined payment plan by Feb 4, 2017. However, the first installment that was received was of Rs50 million only, leaving a balance of Rs580 million whereas the company stated that the remaining amount would be paid by February 19. The remaining amount was finally received on June 29, after a delay of five months.

 

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Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]

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