ISLAMABAD: The Federal Government Employees Housing Authority (FGEHA) has formed a four-member committee to look into the controversial bidding process of a development project in sub-sector G-14 worth over Rs3.5 billion.

The FGEHA had opened the tender in December 2024 to award a contract for infrastructure development work in sub-sector G-14/1. The lowest bid of Rs3.92bn turned out to be 25 per cent higher than the estimated cost of Rs3.13bn.

Later, the FGEHA cancelled the bid in July this year without issuing a work order. The contractor then moved the Islamabad High Court (IHC), which directed the FGEHA board to decide the matter through a speaking order within 30 days, after giving the petitioner a proper hearing.

Sources said the FGEHA board took up the matter in its previous meeting and formed a three-member committee. On September 11, the committee proposed a way forward before the executive board, which also gave a hearing to the contractor.

They said that following the board’s recommendation, the FGEHA on September 17 formed an internal committee “to examine and review the matter”.

A letter issued after the 42nd Executive Board meeting held on September 11 stated, “The board granted the petitioner [contractor] a hearing in light of IHC directions and directed DG FGEHA to examine and review the case on merit and dispose of the petition through a speaking order in light of findings and recommendations of the board-constituted committee under the Managing Director, Pakistan Housing Foundation, and relevant laws/rules. The order must be passed within 15 days, under intimation to the FGEHA board,” read the notification dated September 17.

The newly constituted four-member committee is headed by Project Director of Life Style Residency Attaul-Haq Waqas, Director Law Basit Khan, Director Joint Venture Faiz Umer Sial and Deputy Director FGEHA Ammer Hamza.

Meanwhile, sources said that hours after the FGEHA board hearing, the construction company, in writing, offered a 10pc rebate on its quoted rate to seek restoration of the bid. “If the bid is restored, work will be started immediately, otherwise we will have to go for fresh tendering,” said an official.

“This 10.6pc rebate of our quoted bid is being extended solely to support the objection of the FGEHA board and contribute positively towards the successful execution of the project,” read the construction firm’s letter.

It is relevant to note that in response to the FGEHA tender, four firms had applied, but only one was declared a qualified bidder.

However, according to FGEHA, the disqualified bidders did not oppose the criteria.

Sources said the internal audit wing of FGEHA and the Chief Engineer had raised objections to the bidding process. Following these objections, the bidding was annulled in July this year.

The allottees of sector G-14/1 have been waiting for proper facilities for years.

Published in Dawn, September 22nd, 2025