04-06-2012, 12:30 PM
CDA sells off plot to wrap up issue
ISLAMABAD – Finally, the Capital Development Authority (CDA) has wrapped up the issue of outstanding compensation amounting to Rs 1.19 billion - the Authority has to pay to a cooperative housing society against the development of 54 acres of land in the northern strip of Sector E-11.It was earlier decided by the city managers that owing to prevailing grave financial crunch, the authority would clear off this Rs 1.19 billion liability by using its land bank option. TheNation has reported a few days ago that as per new arrangements finalised between CDA and MPCHS, the former would give same-priced plot to the latter in return of its approved compensation amount.The other day, administration of MPCHS taking part in auction of commercial plots offered the highest bid of Rs 261,000 per square yard against Plot No 56-D measuring 4,888 square yards and located in Blue Area F-6/G-6. The total cost of the plot is Rs 1.27 billion.Earlier, CDA Board on February 17, 2012 has approved the results of a local audit firm assigned the task to audit Rs 2.036 billion initial claim of Multi-Professional Cooperative Housing Society against the development of E-11 northern strip.The claim was submitted by the cooperative society after the apex court has declared a joint venture between CDA and MPCHS as illegal in 2011. The court had directed the administration of the housing society to pursue the remedy for recovery of any amount it had spent on the project in accordance with law. The CDA has already paid Rs 320 million out of the claimed amount to MPCHS on October 5, 2011 against tangible transactions. While rest of amount, Rs 1.64 billion was audited by an audit firm and fixed Rs1.19 billion as payable to MPCHS.The local auditors have refused to owner Rs 0.45 billion of the claimed amount, as the society administration remained fail to provide sufficient details of expenditures. Though the CDA Board has approved the amount, it had nothing to pay in cash to the society owing to financial crunch.“I don’t know from where we will pay to MPCHS, as I don’t have such huge amount in CDA accounts. But its possible if MPCHS took part in an open auction of CDA’s land and took some plot of the value of their approved amount,” CDA Engineer Farkhand Iqbal said while talking to The Nation few days ago.Though the audit was done by a local audit firm present on the panel of cooperative department under the Cooperative Housing Societies Act, it by rejecting approximately Rs 0.45 billion claimed amount endorsed the observations of the judges of the apex court.The court had observed, “It is not believable that such large sums of money were paid in cash. There was, so to say, no valid proof of payment furnished to our satisfaction. Thus, looked at from any angle, the transaction appears to be a sham deal. The whole exercise appears to be an eyewash. This also negates the claim of huge investment made by the MPCHS in this project.”Earlier, a commission formed by CDA was mandated to resolve the complexities in Rs 2.036 billion claim submitted by the MPCHS. Commission has suggested the CDA Board to audit the claim from an internationally recognised audit firm. The same suggestion was later endorsed by CDA Board
ISLAMABAD – Finally, the Capital Development Authority (CDA) has wrapped up the issue of outstanding compensation amounting to Rs 1.19 billion - the Authority has to pay to a cooperative housing society against the development of 54 acres of land in the northern strip of Sector E-11.It was earlier decided by the city managers that owing to prevailing grave financial crunch, the authority would clear off this Rs 1.19 billion liability by using its land bank option. TheNation has reported a few days ago that as per new arrangements finalised between CDA and MPCHS, the former would give same-priced plot to the latter in return of its approved compensation amount.The other day, administration of MPCHS taking part in auction of commercial plots offered the highest bid of Rs 261,000 per square yard against Plot No 56-D measuring 4,888 square yards and located in Blue Area F-6/G-6. The total cost of the plot is Rs 1.27 billion.Earlier, CDA Board on February 17, 2012 has approved the results of a local audit firm assigned the task to audit Rs 2.036 billion initial claim of Multi-Professional Cooperative Housing Society against the development of E-11 northern strip.The claim was submitted by the cooperative society after the apex court has declared a joint venture between CDA and MPCHS as illegal in 2011. The court had directed the administration of the housing society to pursue the remedy for recovery of any amount it had spent on the project in accordance with law. The CDA has already paid Rs 320 million out of the claimed amount to MPCHS on October 5, 2011 against tangible transactions. While rest of amount, Rs 1.64 billion was audited by an audit firm and fixed Rs1.19 billion as payable to MPCHS.The local auditors have refused to owner Rs 0.45 billion of the claimed amount, as the society administration remained fail to provide sufficient details of expenditures. Though the CDA Board has approved the amount, it had nothing to pay in cash to the society owing to financial crunch.“I don’t know from where we will pay to MPCHS, as I don’t have such huge amount in CDA accounts. But its possible if MPCHS took part in an open auction of CDA’s land and took some plot of the value of their approved amount,” CDA Engineer Farkhand Iqbal said while talking to The Nation few days ago.Though the audit was done by a local audit firm present on the panel of cooperative department under the Cooperative Housing Societies Act, it by rejecting approximately Rs 0.45 billion claimed amount endorsed the observations of the judges of the apex court.The court had observed, “It is not believable that such large sums of money were paid in cash. There was, so to say, no valid proof of payment furnished to our satisfaction. Thus, looked at from any angle, the transaction appears to be a sham deal. The whole exercise appears to be an eyewash. This also negates the claim of huge investment made by the MPCHS in this project.”Earlier, a commission formed by CDA was mandated to resolve the complexities in Rs 2.036 billion claim submitted by the MPCHS. Commission has suggested the CDA Board to audit the claim from an internationally recognised audit firm. The same suggestion was later endorsed by CDA Board