KARACHI: The very existence of the Pakistan Real Estate Investment and Management Company (Primaco), a subsidiary of the Employees Old Age Benefits Institution (EOBI), has been found to be 'illegal' while corruption has also been uncovered at the organisation, DawnNews reported.

The observations were made in an auditor general report that has questioned the legal existence of Primaco, which is responsible to invest the parent company’s capital in construction projects.

According to the report, the existence of Primaco is illegal as it is against the 1976 Act of EOBI. Some major corruption charges have also been leveled against Primaco’s management.

However, despite the observations made in the report, the company continues to operate and invest in future projects.

Also read: EOBI fails to complete projects despite SC order

Primaco CEO Brig (retd) Amjad Ali Jaan categorically denied the allegations in the DawnNews programme Exposed, aired on January 2.

“Primaco was formed in 2006, and no report since then has raised the issue of its legality,” said Ali Jaan.

He further clarified that the corruption mentioned in the audit report pertains to the previous Primaco management under Zafar Gondal, whose case is already in the Supreme Court.

“I joined (as CEO) only a year ago and since then we have been working to make things right,” said the company's CEO.

Also read: Ex-chief of EOBI arrested in Rs44bn scam

EOBI Director General Investments Muhammad Riazuddin spoke about the status of current investments being made, despite a case having been registered in the Supreme Court.

“The projects are already delayed for two years, we can’t stop them now,” said Riazuddin.

It has been speculated that EOBI may lose Rs80 million of workers' pensions, which they invested in failed construction projects.

Journalist Azmat Rehmani raised question regarding "most of the construction projects" that are either incomplete or not rented out after completion.

He elaborated, “Among several projects in the country, residential apartments in Nazimabad and commercial buildings in Malir are still vacant.”