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ISLAMABAD: T&T Employees Co-op Housing Society managers suspended on corruption
12-25-2010, 04:06 PM
Post: #1
ISLAMABAD: T&T Employees Co-op Housing Society managers suspended on corruption
* New administration committee to hold election in the society

The managing committee of T&T Employees Cooperative Housing Society (T&TECHS), Sector F-17 in zone II of the federal capital, has been suspended after it is proved guilty of corruption of Rs 37.5 million and an administrative committee has been constituted to hold election for the new managing committee.

The administrative committee, constituted by Additional Deputy Commissioner (Revenue), has been assigned the task to file a First Information Report (FIR) against the managing committee and address the problems of the alotees. It is directed to hold free and fair election for a new managing committee within six months according to the bylaws of the society.

Daily Times had published a news story on November 5 reporting that over 15,00 allotees were deprived of plots despite paying money to the said housing society, adding the management of the society embezzled Rs 300 million. It was also mentioned that as per special audit report from July 01, 2004 to June 30, 2009, an amount of Rs 76,895,175 was recoverable in the head of advances for land that was a serious violation on the part of T&T Employees Cooperative Housing Society’s Managing Committee extending such a hefty amount to the land providers without any proper security.

Besides, the society’s vice president Malik Jamil had been given money in advance to purchase land, and as per special audit report, an amount of Rs 18,824,361 including the total amount of recovery of Rs 76,895,175 was recoverable from him. This was serious violation of byelaws of the society on part of the managing committee. It was further revealed that as per the special audit report, an investment of Rs 3,75,00,000 (long term investment) and Rs 21,70,00,000 (short term investment) was made by the managing committee of the society with M/S TSSL, owned by the society’s president without any proper bank guarantee. Besides, so many embezzlements were also pointed out through that news.

Following the news item, the Deputy Commissioner Amer Ali Ahmed took notice of the issue and marked Additional Deputy Commissioner (ADC) to conduct an enquiry into the reported embezzlement by the society’s management. Enquiry was marked in view of Section 43 of the Cooperative Housing Societies Act.

During the course of enquiry, which has been finalized now, the managing committee of the society had been failed to clarify the allegations. So, the committee has been suspended and an administrative committee is formed.

According to notification number 2256/CR/ICT/B which will be published in official gazette of Pakistan in exercise of the powers delegated under Rule 48 of the Cooperative Societies Rules 1927, the ADC (Revenue) had superseded the managing committee of T&T Employees Cooperative Housing Society because it was failed to satisfactorily reply to the show cause notice issued under Rule 48 of the Cooperative Societies Rules 1927 and were unable to refute the allegations of irregularities, misadministration and mismanagement in the affairs of the society. The notifications says the managing committee could not develop the scheme of the society despite the laps of a long time and there were still many patches of land in the scheme, which would be cleared for development of the scheme.

It said there were many complaints of members against managing committee of the society and members of the society did not approve agenda items of AGM held on March 28, 2010 showing distrust of members in managing committee of the society.

It said that as per special audit report huge amount was recoverable in the head of advances for land from the society’s vice president and others, which is the responsibility of the managing committee of the society. It said the special audit report revealed that a huge amount of Rs 3,75.00,000 (long term) and Rs 21,70.00.000 (short term), invested in M/s TSSL without any bank guarantee owned by the president of the society, was recoverable from the company along with interest.

The notification said the managing committee of the society held out assurance to the AGM, held on March 28, 2010, to return the amount of investment within six months but it did not pay back a single penny to the society’s accounts so far despite the laps of nine months, which was serious violation on the part of managing committee of the society. It further said the managing committee was given opportunity of personal hearing November 12, in addition to written reply, to meet the requirements of the Rule of Natural Justice, however, they failed to justify why they were working against the byelaws of the society and provisions of the Cooperative Societies Act, 1925 and Rules, 1927.

The additional committee, headed by Ch. Muhammad Ashraf Gujjar, comprises seven members including Muhammad Akram Khan, Shahid Islam Qureshi, Zahoor Ahmed, Aurang Zeb Atash, Mehmud Afridi and Azhar Balouch. It is assigned the task o file the cases under Section 50-A of the Cooperative Societies Act, 1925 for the recovery of the misappropriated amount of society from the ex-managing committee members. The committee will move the cases to Deputy Commissioner for attachment of persona/ properties of office bearers of ex-managing committee. A FIR will be registered against members of the ex-managing committee of the society and the cases will be moved for placing of their names on Exit Control List (ECL).

According to the notification, the extent of development work already undertaken on the site may be gauged and a report may be furnished to the registrar about the work still required to be completed along with its estimated cost. Similarly, the patches in the land of the society will be cleared after arranging necessary funds through recovery from the members of the ex-Managing Committee. The land of the society from the illegal occupants will be cleared as early as possible, the notification revealed adding the dispute with the neighboring societies will be amicably resolved for mutual benefit of both societies. It said the prior approval of cooperative department would be obtained for purchase and exchange of land and the payment of development work. It said that no payment, except staff salary and utility bills, would be paid without the approval of the cooperative department. It was affirmed that all efforts would be made to develop the scheme of the society for early possession of plots to the members of the society and the elections of the managing committee would be held according to the byelaws of the society and the approved election rules within six months.
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