ISLAMABAD: The Capital Development Authority (CDA) made an `irregular payment` of Rs575.1 million to Bahria Town and the son of a local politician when purchasing land in sectors H-16 and I-17, according to an audit report submitted to the Public Accounts Committee (PAC).

According to a report from the auditor general`s office, CDA purchased the land from Bahria Town and Usman Nawaz Khokhar between July 2008 and January 2009 at Rs830,000 per kanal, when the land was actually valued between Rs100,000 to 200,000 per kanal.

The audit report claimed that both Bahria Town and Khokhar `purchased the land from the owners at the rate of Rs100,000 and Rs200,000 per kanal, asper [the] record`.

However, it said that the land award was fixed by the authorities at Rs830,000 per kanal.

The audit report also points out that an `inquiry was not conducted to fix responsibility against the persons who made huge payment of land compensation to bigwigs`.

Auditors recommended the PAC direct CDA`s principal accounting officer (PAO) to conduct an inquiry and share the outcome with them.

As per the report, the then-CDA director (land) deliberately failed to implement the policy under which investors could not purchase property in places where the civic authority was set to acquire land for sector development and when the rate of the land had not been notified through an award.

Subsequently, investors were allowed to purchase the land in 2008, whereas the award of land was announced in January 2009.

The audit report said the `mutation/ transfer of land in the name of investors was unauthorised`.

CDA acquired 3,277 kanals in the Bhadana Kalan revenue estate from the landowners, but `made payment only inrespect of 222.13 kanals`, which was provided by the housing society and its middleman.

The original owners of the land, it should be noted, are still pursuing compensation-related petitions in the Islamabad High Court (IHC).

The report said that CDA paid Rs541 million to Bahria Town, while Mr Khokhar was just paid Rs34 million.

Retired Colonel Khalilur Rehman, a senior Bahria Town official, told Dawn the housing society would explain its position before the inquiry committee, as and when summoned.

In a related audit para, auditors pointed out that in July 2009, the CDA board banned payments for large land holdings due toañnancialcrunch.

The para again noted that CDA`s thendirector (land) made a payment Rs1.25 billion to selected land holders, in violation of the policy.

During a meeting of the departmental account committee (DAC) in March this year, the civic agency explained that payments were made to landowners as per the award announced by land acquisition collectors.

The DAC did not accept CDA`s explanation and directed the authority to conductan inquiry to fix responsibility in this matter.

Centaurus DG Audit Maqbool Gondal also told the PAC on Thursday that CDA had allowed post-bid changes in the contract agreement for the Centaurus mall to allow for the construction of a 42-storey building instead of the permitted 20-storeys.

He said that if the 42-storey provision had been part of the original bid, the offered rates to bidders would have been different, due to the need for a wider covered space for commercial activities.

The audit report pointed out that the CDA`s member for finance had decided on Aug 22, 2007 that the construction of additional storey would be charged at the rate of Rs4,229 per square yard (Rs135.5 million), but that this amount was not collected.

When the PAC inquired about progress from the National Accountability Bureau (NAB), an official said that the investigation into the matter had been closed.

However, Mr Gondal suggested that the PAC could seek the investigation report to ascertain why NAB gave the builder a clean chit.