PAC told Rs1.27 billion embezzlement detected in CDA land compensation payments

The Public Accounts Committee (PAC) was informed on Wednesday that irregularities worth Rs1.27 billion had been detected in land compensation payments made by the Capital Development Authority (CDA), including payments issued to fictitious and deceased affectees, The News reproted. 

The committee reviewed the CDA’s audit report for 2023–24 during a meeting chaired by a committee member and examined several audit observations referred to the Federal Investigation Agency.

Audit officials told the committee that Rs305.8 million had been paid to non-genuine affectees, while Rs59.4 million was issued in the names of deceased individuals. They also reported overpayments amounting to Rs380 million.

Officials said a separate case involving the allotment of 43 plots in Islamabad caused an estimated loss of around Rs1 billion to the national exchequer.

The Federal Investigation Agency informed the committee that FIRs had been registered against 57 CDA officials, employees and private individuals in connection with the case. Authorities have so far arrested 37 suspects.

The CDA chairman told the committee that criminal proceedings had been initiated against those involved and several individuals were already in custody.

Members of the committee raised concerns over the compensation system and the handling of land allotments. Questions were also raised regarding recruitment practices within the authority and the safeguards in place to prevent irregularities.

The committee was further informed that compensation to affectees in some cases was still being calculated at the 2008 rate of Rs800,000 per kanal, while land prices in the same areas have risen significantly.

Officials also told the committee that some of the affected individuals in the case included orphans and persons with disabilities.