Report: ANI
Islamabad: A Joint Investigation Team (JIT) report on the One Constitution Avenue project has revealed serious alleged irregularities in the auction of land, lease agreements, joint venture arrangements and the sale of apartments. The federal cabinet had approved the release of the report, while the Prime Minister constituted a committee in May, headed by the National Accountability Bureau (NAB), to investigate the matter. The committee included representatives of the FIA, FBR, SECP and intelligence agencies.
According to the JIT report, approximately 13.5 acres of land were allocated exclusively for the construction of a hotel. However, the investigation found evidence of alleged manipulation in the auction process. The first auction was cancelled without approval from the CDA Board, followed by changes in regulations and the issuance of a second bidding process. The report stated that rules were relaxed after bids had been received, including changes to building height, covered area and parking requirements without board approval.
The report further revealed that although a four-member consortium won the second bidding process, the lease was awarded to a company that was not part of the consortium. The CDA allegedly failed to verify the relationship between the company and the consortium. The requirement for a bank guarantee was also withdrawn just three days before the signing of the lease, directly benefiting the developer, according to the JIT.
The investigation also raised questions over the authenticity of documents submitted in connection with the joint venture. The agreement was reportedly entered into the CDA record in 2012, several years after the relevant transaction. The signatures of two consortium members were allegedly forged, while one witness was reportedly abroad on the date mentioned in the agreement. The report also questioned the registration of the lease through a Rent Controller instead of the relevant Sub-Registrar.
According to the JIT, the project had originally been approved as a five-star hotel with serviced apartments. However, 254 apartments were allegedly sold as residential units through 99-year subleases, in violation of the approved project terms.
The report identified Abdul Hafeez Sheikh as the alleged mastermind of the arrangement involving CDA officials. It also named Kamran Lashari, Faisal Awan, Azhar Chaudhry, Brigadier Nusratullah and the late Rai Nawaz Kharl among those allegedly involved in the irregularities.
The JIT concluded that the alleged collusion caused losses to the national exchequer while providing unlawful financial benefits to the individuals concerned and their associates.
Key Recommendations of the JIT
The report contains recommendations for the Prime Minister, including blacklisting Abdul Hafeez Sheikh and BNP from all government projects and conducting a comprehensive legal review of the project. It also recommends that the building should not be allowed to be used for residential purposes.
The JIT proposed that the land and buildings be auctioned again through a transparent process and that security, CCA and Environmental Protection Agency (EPA) clearances be made mandatory for such projects. It also called for the immediate installation of adequate fire safety equipment in the building.
Other recommendations include changing the name of One Constitution Avenue, as the project currently serves as the official address of the Ministry of Foreign Affairs, and directing the CDA to refund the original buyers' payments along with interest.
The report further recommends a comprehensive review of the CDA Ordinance, the establishment of an independent Master Plan Commission, and the digitisation of all CDA records and approvals.
It also proposes transfers of officers serving in the Estate, Planning, Enforcement and Building Control departments every two years, third-party audits of auctions and agreements, and accelerated NAB investigations.
The JIT has recommended that NAB complete its investigation and file a reference before the court within three months.
