ISLAMABAD: The Islamabad High Court (IHC) on Wednesday suspended the Public Accounts Committee’s (PAC) order to stop work on a five-star hotel (Grand Hyatt) in Diplomatic Enclave near the Convention Centre.

The PAC had not only stopped the work but also ordered the arrest of the construction company’s officials.

The construction company, Bismillah Niagara Paragon (BNP), through Barrister Aitzaz Ahsan, had challenged the orders of the PAC.

The committee in May had also directed the Capital Development Authority (CDA) to lodge cases against its officials involved in corruption as well as those of the company with National Accountability Bureau (NAB).

The IHC bench, during the course of the hearing, issued notices to the PAC and CDA and directed them to submit their comments within a fortnight.

The petitioner had acquired land for the construction of a five-star hotel. The CDA leased out the land to the company in 2005 for Rs5 billion which it had to pay in installments by 2020.

According to the petition, in the aftermath of October 2005 earthquake, the CDA changed its laws regarding building code and structure, which raised the cost of the hotel construction.

This forced BNP to file an application with the then prime minister seeking relaxation in schedule of lease payment. The prime minister referred the matter to the Economic Coordination Committee (ECC).

The ECC allowed the CDA board to decide the matter, which rescheduled the payment allowing it to complete the installments by 2021, giving one-year relaxation.

The petition further said that in 2010-11 the auditor general raised objection over rescheduling of the amount and observed in the audit para that this rescheduling was not discussed with the auditor general’s office.

The PAC then took up the matter and issued directions for the arrest of the BNP and CDA officials besides recommending lodging of cases against them with the National Accountability Bureau.

The counsel adopted before the IHC that the PAC unilaterally decided this matter without providing them a chance of hearing.

The court while issuing the above order adjourned the hearing till a date to be fixed by the registrar office.

Published in Dawn, August 21st, 2014