05 December 2004	Sunday	22 Shawwal 1425

KARACHI, Dec 4: The Sindh Local Government Commission (PLGC) has asked the City Nazim to furnish details of the contract made by the City District Government Karachi with a local firm.

In a letter to the city nazim, the commission has sought further clarifications from the nazim on the auction of plot on Saddar nullah.

The commission pointed out that during the course of an inquiry initiated by the commission pertaining to orders passed by the City Nazim, giving approval for auction of plot on a nullah, commonly known as "Americano", some discrepancies surfaced which need to be clarified at the earliest.

The commission inquired whether the contract was awarded under SLGO 1979 and, if so, it asked for the specified Section and whether the City Council had considered the proposal and passed any resolution approving the orders of the City Nazim.

The commission observed that the previous owner of Americano was offered a price of Rs 25,000 per square feet (Rs 225,000 per square yards).

It noted that the reserved price, kept for the auction, was much less and the auction was finalized at Rs 94,500 per square yards, which was too on the lower side and called for reasons, thereof.

The commission pointed out that the orders of the City Nazim, approving the auction for 99 years lease without the recommendations/consent of district coordination officer, seem to be is illegal, as the auction could only be held for the period of not more than five years as per Section 124 of the SLGO 2001. It asked for specification, if there were any other powers with him.

The Commission said that EDO (Law) gave his consent before the High Court for auctioning the property for 99 years lease and asked whether he gave the consent with the approval of the City Nazim, and if he did, whether the City Nazim had any authority to give such instructions.

The Commission pointed out that City Nazim by ignoring the advice of the DCO had violated the provisions of Section 13(2) of the SLGO 2001.

It noted that EDO (Revenue) did not take any part in the auction proceedings though he was the chairman of the committee and he failed to authenticate the proceedings of the auction, thus the proceedings were not covered under the law.

According to the Commission, after passing the orders to finalize the matter of lease of nullah, the Nazim returned the papers through Chairman, Land Committee, instead of the DCO and questioned why channel of correspondence was not followed and papers were handed over to a third person who was not supposed to play any role under the rules.

It said the successful party was, under the law, required to deposit 1/4th of the cost offered by it at the fall of hammer. Hence they have defaulted and by no means could be treated as successful bidders.

The commission called for explanation of the points/issues raised and said the same be furnished at the earliest but not later than seven days of the receipt of this letter.

It said after receipt of the explanation, if found unsatisfactory, he (Nazim) will be given an opportunity of being heard.

With the issuance of this notification, it seems that the ongoing dispute over auction of "Americano" nullah would intensify further.

Through the letter, the commission has referred to Section 3 sub section (b) of the SLGO 2001, which states that "no contract exceeding the value specified in column 2 of the first schedule against the local government specified in column 1, thereof, shall be made without the approval of council".-APP