-1.7 billion in losses accrue to allottees due to purchase of land at higher rates
ISLAMABAD: Already the subject of courts and allottees ire, according to documents available with Pakistan Today, Federal Government Employees Housing Foundation (FGEHF) bought land of the M-2 scheme at Thallian from an ineligible firm at the cost of 4.2 billion rupees.
As per expression of interest, only real owners or those having a valid power of attorney of land were eligible to the offer bid. A Memorandum of Understanding (MoU) signed with the bidder also provided that the land has to be under the exclusive dominion of the bidder.
However, it has surfaced that Messrs K.S Developers were not the owners of any compact piece of land or any kind of power of attorney. They only submitted agreements to sell land to housing foundations. Hence, bid of Messrs K.S Developers was non-responsive and liable to rejection but the contract for development of the housing scheme was signed with the non-responsive bidder resulting in an irregular purchase of land worth 4 billion rupees.
Furthermore, loss to allottees due to the purchase of land at higher rates amounted to 1.725 billion rupees.
According to documents, the rate of 500,000 and 350,000 per kanal for Mouza Moorat and Chehan were agreed in the contracts signed on September 23.
However, according to a State Bank appointed evaluator, the rates were higher than the evaluated rates of average market rates of land. The audit was of the opinion that due to non-adherence to the canons of financial propriety and the failure of management to protect the interests of the foundation from compromise, the allottees were put to a loss of 1.725 billion rupees.
Despite repeated reminders, the foundation did not reply to the audit paras.
It is pertinent to mention that not a single housing scheme inaugurated by FGEHF during the last five years has seen the light of the day; the allottees of these schemes still await possession. In the meanwhile, the foundation is busy fighting its F-14 scheme case in the Islamabad High Court (IHC), defending itself before the PAC which has halted work on its Thallian project.
Furthermore, the Federal Investigation Agency (FIA) is investigating its officers for the scam as well.
Federal Government Employees Housing Scheme is currently working on following projects Phase-VI, (Bhara-Kahu), Housing Scheme Phase-VI, (F-14/F-15), Housing Scheme Phase-VIII (Thallian), Housing Scheme Phase-IX (EHFPRO) and Housing Scheme Phase-X (Park Road)
FGEHF was set up in March 1990 and is registered as a company limited by guarantee under the Companies Ordinance, 1984. It was originally entrusted with the task of implementing the self-financing housing schemes on ownership basis for employees of the federal government.
Initially, the FGEHF did an exemplary job and about 16000 houses were constructed within half a decade and 4000 plots were allotted to successful applicants with an option to undertake construction under their own arrangements.
However, the zeal with which FGEHF started working soon petered out.