ISLAMABAD: The National Assembly standing committee on cabinet secretariat was informed on Thursday that only automation and an amendment to the Capital Development Authority (CDA) Ordinance can steer the civic agency out of the financial crisis.

The meeting of the committee, chaired by Rana Mohammad Hayat Khan, was also informed that there was a need to clear encroachments - Afghan Basti - from Sector I-11 as the land had already been allotted to individual buyers since 1989.

Briefing the committee, CDA Chairman Maroof Afzal said it was imperative to clear the Afghan settlement if Sector I-11 was to be developed.

“The actual Afghan Basti was cleared with the help of the relevant UN agency in 2005-06 but gradually the locals encroached on the land.”

He added several attempts had been made to launch an operation against the encroachments but other developments in the city kept the police busy. As a result, the operation had to be delayed.

“We have made lists and collected all the details about the residents who are locals and some of them are even professional land grabbers,” the CDA chairman added.

MNA Dr Tariq Fazal Chaudhry seconded the CDA chief’s point of view and said most of the katchi abadis in the city were on the government land except the Afghan Basti which was on an allotted land.

“The CDA should either give them alternative plots or clear the land and develop it,” Mr Chaudhry said.

The committee members noted that the CDA was not working effectively as a development agency and as a civic body.

They also inquired about the ongoing verification of the documents of employees recruited during the last five years.

The chairman CDA said only an automation can plug the loopholes and leakages in the system.

“Automation is needed regarding data of all the human resource in CDA. This is the only way to keep a check on mismanagement.”

He said same was the case with files of land record. There are duplication in allotments and many files go missing without any trace.

“Regarding improvement of financial health of the authority, there has to be an amendment to the law allowing the CDA to execute projects with the private sector,” he added.

The committee was told that an amendment to the CDA ordinance by parliament would allow the authority to execute projects in partnership with the private sector.

“The CDA will place its land as an equity whereas the private sector would make major investments,” the CDA chairman added. “This formula will be applicable for land development, commercial ventures and infrastructure development.”

The committee was informed that the CDA was facing financial challenges to meet its expenses and all the civic functions, including maintenance works, were being financed through the sale of land.

The CDA faces a monthly outflow of Rs560 million, including Rs400 million in terms of salaries, Rs100 million utility bills and Rs60 million in other expenses. The non-development expenditure in the current budget 2014-15 is estimated at Rs15.68 billion.

Published in Dawn, November 7th, 2014