The audit authorities have detected the financial irregularities, losses, mismanagement and embezzlement worth around 28 billion rupees in the accounts of the Capital Development Authority.
In their annual report for fiscal 2011-12, the federal audit authorities have encompassed non-compliance, poor performance and weak internal control, losses, non-recovery, irregular work award, unjustified payments and wasteful expenditures by the Authority.
The report has raised 68 objections on CDA's accounts. The audit found that non-recovery of the penalties, rents, property taxes, water charges, contract advances have incurred the CDA a loss of around Rs3.703 billion, recommending the CDA to implement departmental audit committee on the audit observations.
The report observed that the CDA has illegally awarded development works worth Rs3.777 billion to the contractors not fulfilling the criteria, open competition or awarded additional work to the same contractor in violation of Public Procurement Regulatory Authority rules.
The CDA unlawfully awarded Rs1.419 billion work for widening of Kashmir Highway (Rs828.4 million), Ladies Club (Rs159.523 million), procurement of 16 water tankers (Rs48 million) and construction of Citizens Club (Rs383.967 million). The audit observation involving highest amount is unjustified announcement of land award worth Rs13.343 billion to develop sectors H-16 and I-17. The CDA had announced award for compensation of land but did not take into account cost of damages and built up properties that prompted the people to move court.
Audit pointed out that due to ill-planning, the CDA could not take possession of the land despite payment of Rs1.25 billion, observing that award was announced without fulfilling codal requirement and lacking commitment to protect Authority's interests.
The CDA had announced award of land acquisition in Kuri and Rehara village in 1966, 1968, 1969 and 1971 but it failed to get possession. After 40 years, the CDA announced another award worth Rs 1.128 billion in August 2010 for taking over built-up-properties from encroachers.
Audit observed that at time of initial award, the number of houses in Kuri was 940 and 131 in Rehara those increased to 7,096 in 2010. The CDA unlawfully paid compensation against the new settlements, in connivance with the encroachers.