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Report on multi-billion housing scam presented to NA

ISLAMABAD: The National Assembly adopted a multibillion scam report of its [NA] special committee on Employees Cooperative Housing Society (NAECHS), in which the committee has identified five employees of the Lower House and Islamabad administration.

“During the course of investigation, some elements tried to influence the committee members; however, the work assigned to it was completed with total impartially and fairness,” said convener of the special committee on NAECHS Sheikh Waqas Akram while presetting the report in the National Assembly.

He said that during the process of investigation, it came into the notice of the special committee that some previous administrators and office bearers of the NAECHS violated the rules and regulation and were also found involved in the embezzlement of society’s funds.

He said that names of all those who were involved in the embezzlement and violations of rules and regulations have been mentioned in the report and recommended action against the elements involved in the irregularities and embezzlement. “The Special Committee, in its report, also proposed future guidelines for the ICT Administration and CDA to check the illegal and fake housing societies,” he added.

The report said that the committee has decided that the National Assembly’s Standing Committee on House and Library will monitor the proposed actions against the individuals involved.

The committee has identified Shahid Hussain Jilani, ex-President of the NAECHS Management Committee; Salamat Ali, ex-Deputy Commissioner/Registrar, ICT cooperative; Asadullah Faiz, Malik Din and Tariq Khan Khakwani and recommended action against them.

The committee asked the Interior Ministry to place the names of the persons against whom action has been proposed in this report, on the Exit Control List (ECL) till conclusion of the actions.

Tariq Khan Khakwani, found guilty of irregularities, malpractices and misappropriations of the society funds as he caused illegal drainage of deposits of the members of the society amounting to Rs212.5 million on account of the development work without approval of layout plan and NOC.

According to report, the committee asked the recovery of Rs7,390,000 from Tariq Khakwani on account of payments made for purchase of land that has not been transferred, so the FIA may look into the matter that the 92 Kanals and 17 marlas of land purchased by him is not in compact block.

Apart from 30 kanals retrieved by this inquiry committee, the rest of land is not suitable, and he further purchased 7.5 kanals of land that wasalready mortgaged to someone else, and a total of Rs90 million was misspent under this head.

The committee found Tariq Khakwani responsible for Rs98,120, 260 losses, so the FIA may prosecute him, and either the amount be deposited to the societies account or equalient development work be carried out at the site NAECHS.

The reports stated that Rs50 million, which was refunded to the Society in July-August 2009, an amount of Rs2.6 million was received in cash by Tariq Khakwani. It’s stated that this amount may be recovered from Khakwani, or he may furnish proof of its depositing back to the society’s bank account.

The committee recommended that Shahid Hussain Jilani may be suspended from service in his capacity as Joint Secretary, National Assembly Secretariat. It recommended that a show cause notice followed by his termination from service should be served upon him as he being the President of the Management Committee (2005-08) of NAECHS committed irregularities and malpractices.

Shahid Jilani Purchased the land measuring 11 kanals and 16 marlas in Moza Phad, Zone-V, Islamabad, which was situated out side the proposed layout plan for Rs7,280,000 by charging double of the local average market rate.

He also purchased scattered land measuring about 205 kanals in Moza Chocha by charging approximately an extra amount of Rs300,000 per kanal.He made the arrangements with the property dealer on the stamp papers, which were not registered with the stamp vender.

He withdrew deposited amounts against memberships NO 132-C and NO 778-C of NAECHS by transferring the said membership in his own name fraudulently on fake document/agreements.

The committee recommended that an amount of equal to present value of the loans or Rs7,280,000, whichever is more, be recovered from Shahid Hussain Jilani on account of purchase of the land measuring 11 kanal and 16 marlas in Moza Phag, which was outside the proposed layout plan.

The committee recommended that Salamt Ali be suspended from his government service in his capacity as private secretary National Assembly Secretariat and disciplinary action be initiated against him under the relevant laws/rules.

The committee finding stated that Salamat Ali floated the tenders in the newspapers in 2003 for award of development work on the site of the society without NOC from the CDA. Salamat Ali gave the contract to M/s Sadaat Enterprises, which was reportedly a defaulter of CDA, for development work on the site of the society without approval of layout plan and NOC from the CDA, and he also made various payments on account of the above unauthorized development work.

The committee also recommended for the suspension of Asadullah Faiz from the government service besides strict disciplinary actions. The committee finding stated that during the tenure of Asadullah Faiz from March 3, 2009, till June 19, 2009, as deputy commissioner in which massive irregularities were committed.

He granted permissions for purchase of land in April 2009 and development work was condoned by this officer on April 16, 2009 and by not adhering to Rules and Regulations, a loss of Rs210 million occurred on account of this actions.

He approved de-freezing of the society’s bank accounts, which were earlier frozen on the directions of the Senate Standing Committee on Interior, without prior consultation of the said committee.

He also allowed development work of housing scheme of the NAECHS at Zone-V, Islamabad, which had earlier been stopped for want of NOC from the CDA; no justification of the same decision is available on record nor could satisfy the committee for his account.

The committee finds that due to this decision, the deposits of members of the society approximately amounting to Rs100 million were gone in waste on payment to the developers in the absence of NOC and LOP.

The committee findings stated that on account of violation of Cooperative Laws, violations of Guidelines of the CDA and issuance of letter for de-freezing the funds and recommending purchase of land in Zone-V at exorbitant rates and without the approval AGM, Asadullah Faiz contributed a loss of Rs210 million.

The committee recommended that the Establishment division should proceed into his misconduct and take necessary action as to why he did not adhere to rules and regulations. The committee believes that sufficient evidence has been accumulated against the accused.

Hence the Establishment Division is directed to suspend him from service forthwith followed by disciplinary action against him, and he should be further debarred from holding any government assignment where revenue matters of financial matters are handled.

The committee finds that Malik Din manipulated de-freezing of the society’s bank account despite the order of Senate Standing Committee on Interior.

The committee recommended for the recovery of Rs90,720,260- from M/s Muhammad Ayub & Brothers, Rs7.4 million from M/s MKN Consulting Engineers, Rs1.95 million from Malik Masood Ilyas, Rs915,000 from Muhammad Ilyas Butt, Rs1,925,000 from Rizwan Ahmed and Rs3.38 million from Usman Nawaz Kokhar.

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