PAC flags irregularities in CDA’s Rs37bn commercial plots auction

Committee also orders audits of Gun and Country Club, Ministry of Interior, and Frontier Constabulary over financial discrepancies

The Public Accounts Committee (PAC) was informed that the Capital Development Authority (CDA) conducted a non-transparent auction of 29 commercial plots worth Rs37 billion, according to a news report.  

The PAC, chaired by MNA Junaid Akbar, reviewed audit reports for the Ministry of Inter-Provincial Coordination for the fiscal year 2023-24. Audit officials revealed that while the CDA board had approved the auction of these plots, five auctions were later postponed, and one plot was entangled in legal complications. 

Committee members questioned why legal aspects were overlooked before approval. PAC Chairman Junaid Akbar also asked why the CDA had failed to prepare financial statements certified by a chartered accountant, a requirement under the CDA Act. Audit officials warned that violations of the ordinance could lead to legal action against responsible officers.

CDA’s Member Finance admitted that financial statements had never been prepared in the past but assured that one for 2023-24 was in progress. PAC members expressed dissatisfaction over the CDA chairman’s handling of the matter and directed the authority to submit financial statements within six months.

The committee also examined audit findings regarding the Gun and Country Club’s possession of unlicensed weapons and ammunition. PAC member Syed Hussain Tariq questioned how a government entity could engage in such an illegal practice, while other members voiced similar concerns. The committee ordered a detailed report on the matter within a month.

Further scrutiny revealed that the Gun and Country Club failed to deposit Rs480 million in additional funds into the Sports Endowment Fund account. The PAC mandated a complete audit of the club and demanded a report within one month.

The committee also investigated financial losses amounting to Rs46.12 million due to the Ministry of Interior’s overpriced uniform procurement and Rs30 million lost through a non-transparent purchase of cameras by the Frontier Constabulary in Khyber Pakhtunkhwa. 

Committee members criticised the absence of the Inspector General of Frontier Constabulary (IGFC) from the session, with Sher Arbab stating that the IGFC should have been present. The PAC directed the Interior Ministry to recover the misused funds and submit a report on action taken against those responsible within a month.

Additionally, the PAC noted that a supplementary grant allocated to the Interior Ministry had not been approved by the National Assembly. The committee found responses from ministry officials unsatisfactory and summoned the secretary of finance for further clarification.

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