ISLAMABAD: The Metropolitan Corporation Islamabad`s (MCI) recent decision to fund union councils (UC) to the tune of Rs250 million is likely to draw a reaction from the Capital Development Authority (CDA), which has been loaning MCI money to meet its necessary expenditures.

The MCI approved Rs250 million in funding for all 50 union councils in the capital amounting to Rs5 million each for development work. However, the MCI does not have any financial rules and regulations in place at this time to begin development projects.

CDA officials Dawn spoke to said the authority, which is facing financial difficulties itself, has been providing the MCI loans to pay employees and meet other expenses.

Instead of easing the CDA out of its financial burden, they said, the MCI has decided to provide union councils with Rs5m each, which it has collected in its receipt and revenues accountthroughvarious taxes.

`We have paid the MCI Rs16 billion in the last three years, because of which our development work has suffered,` a CDA engineer said.

He said MCI officials openly claim they do not have the funds to run the Islamabad zoo, provide water schemes or resolve other important issues, while taxes the corporation collects are being handed over to union council chairmen.

He likened the development funds to `discretionary funds`, asking how the MCI could distribute funding among its members without any rules or checks.

However, Mayor Sheikh Anser Aziz defended the MCI`s decision, saying all union council members were given Rs5 million worth of development schemes irrelevant of party affiliation.

`There is no violation of rules and regulations, the MCI can do this,` he added.

He said that before the MCI was formed, the CDA was regularly paying employees whose services had now been placed under the corporation, and the CDA was paying them under government directives.

`This is not a favour, as the CDA is following the directive of the federal government to continue paying employees` salaries and provide funds to the MCI for essential work. If the CDA stops paying us, the federal government will pay,` said.ISLAMABAD: The Metropolitan Corporation Islamabad`s (MCI) recent decision to fund union councils (UC) to the tune of Rs250 million is likely to draw a reaction from the Capital Development Authority (CDA), which has been loaning MCI money to meet its necessary expenditures.

The MCI approved Rs250 million in funding for all 50 union councils in the capital amounting to Rs5 million each for development work. However, the MCI does not have any financial rules and regulations in place at this time to begin development projects.

CDA officials Dawn spoke to said the authority, which is facing financial difficulties itself, has been providing the MCI loans to pay employees and meet other expenses.

Instead of easing the CDA out of its financial burden, they said, the MCI has decided to provide union councils with Rs5m each, which it has collected in its receipt and revenues accountthroughvarious taxes.

`We have paid the MCI Rs16 billion in the last three years, because of which our development work has suffered,` a CDA engineer said.

He said MCI officials openly claim they do not have the funds to run the Islamabad zoo, provide water schemes or resolve other important issues, while taxes the corporation collects are being handed over to union council chairmen.

He likened the development funds to `discretionary funds`, asking how the MCI could distribute funding among its members without any rules or checks.

However, Mayor Sheikh Anser Aziz defended the MCI`s decision, saying all union council members were given Rs5 million worth of development schemes irrelevant of party affiliation.

`There is no violation of rules and regulations, the MCI can do this,` he added.

He said that before the MCI was formed, the CDA was regularly paying employees whose services had now been placed under the corporation, and the CDA was paying them under government directives.

`This is not a favour, as the CDA is following the directive of the federal government to continue paying employees` salaries and provide funds to the MCI for essential work. If the CDA stops paying us, the federal government will pay,` said.