ISLAMABAD, July 9: The Public Accounts Committee (PAC) on Friday took exception to the failure of the Capital Development Authority (CDA) in recovering Rs40 million outstanding dues from various contractors working with its different formations.

According to a press release, the committee in its meeting presided over by MNA Malik Allah Yar Khan discussed the audit report of the Capital Development Authority for the year 1999- 2001.

The PAC chairman asked the interior ministry to strengthen the financial discipline and internal control in the authority. It lamented the authority's recovery system as the department concerned had failed to realize the outstanding amount against different contractors, which had left the work unfinished.

The committee also directed the authority to immediately blacklist all such contractors and circulate their list to other government departments so that the same contractors may not get any contract again.

The committee discussed an audit para pertaining to non- recovery of Rs34.976 million paid to contractors as secured advances. The contractors neither completed the work in stipulated time nor the authority realized the outstanding amounts by forfeiting their securities. The PAC directed the CDA to strictly observe the financial rules laid down by the government.

In another case of non-recovery of water and sewerage dues from the ministry of religious affairs, the committee directed the finance ministry to adjust the amount in question through exercising their powers as adjuster.

The PAC chairman also directed the authority to take disciplinary action against the Director CDA (Parliament House) for releasing full payment of Rs3.075 million to the contractor, who provided electrical equipment and spares part for the SIS System installed at Parliament House in contravention of the rules, and recover the excess amount paid to the contractor.

The committee also constituted a sub-committee headed by MNA Makhdoom Khusro Bakhtiar to probe into the extension of the contract of a bus/wagon stand at Islamabad to the same firm from 1992 to 1999 instead of an open auction.

The sub-committee would suggest further action to the PAC in this regard. The committee regularised various audit observations subject to their confirmation by the audit department and as recommended by the Departmental Accounts Committees (DAC). However, the committee directed the labour ministry and the CDA to provide relevant record to the audit department without delay.

The meeting was attended by MNAs Mohammad Safdar Shakir, Riaz Fatyana, Kanwar Khalid Yunas, Major Tanvir Hussain Syed, Maulana Abdul Ghafoor Haideri, Ghulam Rasool Sahi, Hafiz Hussain Ahmed, Ch Qamaruz Zaman Kaira, Prof Asiya Azeem, Syed Qurban Ali Shah, Makhdoom Shah Mehmood Qureshi, Ghulam Sarwar Khan, Makhdoom Khusro Bakhtiar apart from the Auditor General of Pakistan, secretary ministry of interior, CDA chairman and other officials of the departments concerned.