CDGK owes Rs 2bn to contractors

[Lahore_Real_Estate]

By Irfan Aligi

KARACHI: Contractors working on various development projects of the City District Government Karachi (CDGK) have demanded the CDGK for the payment of outstanding bills worth around Rs 2 billion, Daily Times has learnt.

According to a CDGK finance department officer, the CDGK’s financial condition has improved and there was no significant shortfall of funds except Rs 309 million regarding single line transfer funds, however, the Sindh finance department was likely to release this amount in a couple of days.

The officer further said the delay in the settlement of outstanding dues was due to exaggerated non-development funds and flaws in the CDGK recovery and revenue departments, which needed immediate overhauling to improve the financial flow.

The Saddar Car Parking Plaza contractor had submitted his bills in May 2009 but has not received the payment of outstanding dues of Rs 100 million as yet. The failure to make the parking plaza operational for the last two years due to administrative disorders including ban on lease and lack of cooperation from Capital City Traffic Police and Capital City Police has caused the project to become dead.

Moreover, the contractor of Bacha Khan Flyover at Banaras, SITE has also been waiting for payment of Rs 150 million. The failure to settle outstanding dues of the contractor might lead to the cessation of the ongoing construction.