Lawmakers Probe Multibillion Rupee Corruption Scandal in Housing Scheme

The Senate Committee on Less Developed Areas, chaired by Senator Shahzeb Durrani, met to discuss allegations of massive corruption in the Park Road Housing Scheme. The committee ordered the Cabinet Division Secretary to launch a comprehensive inquiry into the matter, despite the ongoing investigation by the Federal Investigation Agency (FIA). During the meeting, the Cabinet Division Secretary stated that the FIA is already conducting an investigation and emphasized that their experts should be allowed to complete the process. However, he assured the committee that if the FIA’s findings were unsatisfactory, the Cabinet Division would conduct its own inquiry. Senator Durrani insisted that both inquiries should proceed simultaneously to uncover the full extent of the irregularities. The committee expressed grave concerns over the issuance of fraudulent bank guarantees and the disbursement of significant funds. Senator Durrani revealed that a forged bank guarantee had enabled the release of Rs. 720 million, with an additional Rs. 1.4 billion slated for disbursement through similar means. He questioned how such large-scale fraud could occur despite oversight by the National Engineering Services Pakistan (NESPAK), which is known for its strict project management protocols. NESPAK’s Managing Director defended the organization, stating that two complaints had been investigated, and no evidence of corruption was found. However, the committee rejected this claim, with Senator Durrani accusing the Housing Directorate’s Director of Finance of direct involvement in the scandal. He alleged that the official had used a forged bank guarantee obtained through questionable means to facilitate the fraudulent transactions. Senator Hamid Khan highlighted that even lawyers had billions of rupees trapped in the project and criticized the inadequate compliance report submitted by the Federal Government Employees Housing Authority (FGEHA). The committee demanded detailed reports from NESPAK and the Housing Directorate, vowing to uncover the truth behind what they described as one of the largest corruption scandals in recent years.