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Inquiry into CDA affairs: Commission report made public

April 25, 2013

ISLAMABAD, April 24: The inquiry commission has declared illegal most of the appointments made in the Capital Development Authority during the Pakistan People’s Party (PPP) government.

The Islamabad High Court (IHC) on Wednesday made public the report of the commission it constituted to investigate the alleged irregularities in the affairs of the CDA.

The commission headed by Justice (retired) Sardar Raza Khan examined a number of projects and recommended disciplinary action against the delinquent officers.

It also scrutinised hundred of appointments made in the CDA during the PPP government and after scrutiny found most of them illegal.

The CDA member planning Syed Mustafain Kazmi when contacted said the authority would implement the court’s directions in letter and spirit and would proceed against the delinquent officers.

The commission commenced proceedings on November 11, 2012 and on April 8, 2013 submitted its report to the IHC Justice Shaukat Aziz Siddiqui.

The commission was constituted by Justice Siddiqui while he was hearing identical petitions against the alleged corruption in the awarding of multi-billion projects by the CDA.

Niazullah Niazi, the former president of Islamabad bar and one of the petitioners, said the report had exposed the wrongdoings of the former government and the corrupt CDA officials.

During the probe it examined 125 witnesses.

The commission examined the following projects:

Monal Restaurant

The tenders for Rs105.3 million project were not called through advertisement but were invited from the firms already pre-qualified by the CDA. Being the lowest one, the contract was awarded to M/s Arif Enterpirses.

The commission found that the “then chairman and all the signatories were responsible for grave violation of rules and procedure” and recommended “strict disciplinary action/departmental action against them.

It declared that the current lessee constructed shops, kiosks, gazebos, tree house on the premises of the restaurant in an illegal manner and directed the CDA to take control of the said structures.

IJP road project

The Rs971 million project for the construction of IJP was awarded to MS Sardar Mohammad Ashraf D. Baluch. CDA paid the firm Rs350 million initially but it could not complete the task. Remaining work was re-tendered to Frontier Works Organization (FWO) at a cost of Rs140 million.

MS Baluch did not return the amount and went into litigation.

The commission recommended disciplinary action against the officials of directorate of Road and Maintenance and the directorate of law of the CDA.

Grand Hyatt

The land for the construction of Grand Hyatt was leased to MS BNP group in 2005 against Rs4.8 billion, but the construction of the hotel was delayed after October 2005 earthquake when some changes were suggested for the design of the multi-storey hotel.

It was then asked to reduce the number of the storey. The lessee on the other hand stopped the payment to the CDA for eight long years.

The commission recommended action against the CDA officials and recovery of all outstanding amounts.

LED project

The Rs7.5 billion light-emitting diode project was tendered in 2010 and M/s Siteco secured the highest marks in the technical evaluation.

The then CDA financial adviser, however, recommended the award of contract to another firm MS Oslo but MS Siteco challenged the CDA decision in the IHC.

The commission pointed out that though the matter is pending, the “project must be retendered” if the civic body wanted the project to continue.

Double road leading to Bahria Enclave

Bahria Town constructed a double road on CDA land without obtaining permission of the civic body in 2011. The authority accorded approval of later in 2012.

The commission found that “from the oral and documentary evidence so far collected, it is apparent on the face of it that access to Bahria Enclave was intervened by Kuri Village, a property belonging to the CDA.”

The commission, however, was of the view that the dispute can only be solved by resorting to the proper forum (civil court) which shall hold demarcation on the spot.

Allotment at prime locations

The commission cleared the allotment of 21 kiosks at the Lakeview Park. It examined the allotment of 72 acres to Gun and Country Club. President Asif Ali Zardari is the Patron in Chief of the Gun Club while local politician Faisal Sakhi Butt of the PPP is the head of management committee of the said club.

The commission observed that the Gun Club management raised construction without the permission of the CDA and did not pay the rent to the CDA.

It recommended that the Gun Club shall be taken over from the present management and immediately handed over to Pakistan Sports Board.Since the matter is already pending in the Supreme Court the commission opined that “subject to decision of the Supreme Court, we would also recommend that the present administration should pay the prevailing rates of rent from the date of non-payment till the time of recovery and disciplinary action should be taken against the concerned officers of the CDA.”


The shuttle service was started to provide facility to all the visitors of different embassies situated in the Diplomatic Enclave. The commission found that the contractor M/s Diplomatic Shuttle and transport Service is charging Rs500 per passenger per trip against Rs200 which was fixed in the agreement.

The contractor, according to the report, said the extra charge was for providing special facility, which is again against the contract.

The commission recommended cancellation of the contract and suggested recovery of the overcharged amount, and action against the CDA officials involved.


In October 2005 earthquake Margalla Towers collapsed. The commission observed that the matter regarding Margalla Towers has been taken up at the Supreme Court level and there is nothing pending with regard to this residential project. It, however, recommended that the CDA officials concerned be dealt in accordance with the law for not maintaining check on the poor construction.


The commission examining the compensation matter of the affected persons of sector H-16 and I-17 observed that the CDA had made compensation to the influential people like Malik Riaz but had not paid any amount to the people affected. The commission recommended the CDA withdraw investment from Stock Exchange and instead invest in other profitable projects.


The commission pointed out that since 2008, CDA had employed 2,701 daily wage employees out of whom 900 had been regularised.

The commission recommended the CDA to “constitute a committee of senior officers headed by the chairman who shall scrutinise the lists” of the employees and to remove ineligible persons.

The commission also advised the CDA to stop the political influence in its affairs.