ISLAMABAD: The digital car parking project launched last year is facing serious corruption allegations as the Metropolitan Corporation Islamabad (MCI) has formed an inquiry committee to examine the tendering process and fee collection mechanism.

Last year, the Capital Development Authority (CDA) outsourced the parking fee collection system in Islamabad and hired the services of a private company.

Sources said that after receiving complaints of alleged embezzlement in revenue collection and a dubious tendering process, the MCI chief formed an inquiry committee to look into the matter. Additionally, an FIR has been registered against the owner and staff of the company over embezzlement allegations.

The company is supposed to collect parking fees through the digital parking system under a pre-determined profit-sharing formula. The MCI had authorised the company to install digital gadgets and collect fees to promote cash-free collection.

MCI forms inquiry committee to probe tendering process, fee collection mechanism

However, sources said that except for the installation of a few small machines, a proper mechanism was not installed.

The company also stands accused of minting money while showing a lower number of car entries.

Under the agreed formula, the MCI was supposed to receive 75 per cent of the revenue while the company was entitled to the rest.

Interestingly, MCI and CDA raised parking fees last year for the said project, putting an additional burden on citizens by increasing car parking charges from Rs50 to Rs100 and motorcycle parking charges from Rs20 to Rs50.

Sources said there were reports of overcharging by the contractor and the Directorate of Municipal Administration (DMA) submitted two applications with the Margalla and Kohsar police stations against the said company, alleging overcharging.

Sources said that the Margalla police are yet to register an FIR, while Kohsar police have registered a case.

According to the FIR dated April 25, 2025, DMA and the private company signed an agreement on April 24, 2024, for revenue sharing. The FIR further stated that at the Daman-e-Koh site, it was pointed out during an inspection that the contractor’s staff was tampering with the record of fee collection by showing a lower number of parking entries.

Currently, the said company is collecting parking fees from eight different sites, including the parking lot adjacent to Centaurus, Daman-e-Koh, Rawal Dam Park, etc.

Meanwhile, the MCI chief has formed a committee headed by DMA Director Dr Anam Fatima.

The committee will examine and assess the request for proposal for pre-qualification, the process of contract formulation and execution of the contract agreement for the digitisation of parking sites on a revenue-sharing basis.

It will also assess the criteria used to screen and select the contractor in addition to evaluating whether the contractor met the necessary technical and financial qualifications to handle the project or not.

The committee will also gather detailed information on car parking sites regarding revenue collection. It will investigate revenue-sharing terms and the payment model from all car parking sites and highlight ground discrepancies if any, and violations of the contract agreement.

The committee is supposed to submit its report within 15 days.

When contacted, Islamabad Chief Commissioner Muhammad Ali Randhawa said, “Since the inquiry is under process, I can’t say anything on this issue at this stage. However, one thing is clear—we are not against the concept of digital car parking, but if corruption charges are established, then we will not spare anyone, as protecting the interests of the public and government institutions is our primary job.”

Published in Dawn, May 1st, 2025