ISLAMABAD: The auditor general of Pakistan has found Rs228 billion irregularities in two housing ventures of the Federal Government Employees Housing Foundation (FGEHF) in the federal capital.

The audit report claimed that in violation of the prime minister’s directions the FGEHF gave preference to the superior courts, media and the Ministry of Housing and Works, the parent ministry of the foundation, in the allotment of quota plots.

In violation of the guidelines issued by the prime minister, the FGEHF issued consent letters to 6,058 individuals causing Rs174.77 billion irregularities.

It said the secretary to the premier on Feb 6, 2016, conveyed the directives to the FGEHF to amend the policy of plot allotment for organisations such as the Supreme Court, Interior Division, Intelligence Bureau and the Ministry of Commerce since members and employees of these organisations had their own housing schemes and could get plots on subsidised rates.

Despite PM’s directions, FGEHF gave preference to employees of different departments and organisations in plot allotments, says audit report

In response, the FGEHF approved a policy and submitted a summary to the prime minister on June 16, 2016. Subsequently, the premier directed the foundation “not to fix any preference/special quota for any group/service/organisation.”

The FGEHF was supposed to make allotments for its upcoming F-14 and F-15 sectors.

But the audit observed that in violation of the PM’s directives the FGEHF “fixed 12pc quota for occupational groups, constitutional bodies, professional bodies, staff and members of superior courts, journalists, media workers, employees of the housing foundation, ministry of housing and works, IB and other ministries which have their own residential schemes”.

The audit was of the view that the FGEHF also violated rules related to the allotment of plots for different categories, adding “unequal distribution of plots was made due to non-adherence to the policy guidelines of the PM.”

The audit called for the implementation of the PM’s orders and fixing responsibility for the wrongdoings.

Besides, the audit report claimed that the FGEHF award of infrastructure development work at F-14 and F-15 to the Frontier Works Organisation (FWO) at higher rates resulted in Rs15.12 billion irregularities.

As per the audit report, the FGEHF issued a request for proposal documents to 16 firms but only two of them - ASCG Co (joint venture) and the FWO - responded. The FWO bid was found technically responsive.

The audit was of the view that the bid evaluation committee accepted FWO’s proposal on higher rates without checking the “reasonability and workability of rates.”

Moreover, the report pointed out that the FWO was not registered with the Pakistan Engineering Council (PEC) which was a prerequisite for its selection.

The auditors recommended an investigation into the case to fix the responsibility.

Bhara Kahu housing scheme

The audit report claimed that the Green Enclave Housing Scheme of the FGEHF in Bhara Kahu was launched for shelterless government employees. It was financed through 100pc receipt from the allottees on a first come and first serve basis.

The audit observed that self-financed schemes were required to be processed through the Departmental Development Working Party (DDWP) for sanction of the development schemes in accordance with the PC-I. But neither the PC-I was prepared nor the DDWP was constituted for the approval and sanction of the scheme.

A review of the record shows that no such detailed estimates and technical sanctions were approved by the competent authority. In absence of which, the accuracy of estimates and structural soundness of the proposal could not be adjudged, it added.

The report disclosed that there was no technical authority in the FGEHF having powers to accord technical sanctions of projects/schemes. This resulted in the award of the scheme without approval of the technical estimate of Rs38 billion.

Published in Dawn, September 2nd, 2017