Massive Irregularities Exposed in Famous Housing Scheme

A parliamentary subcommittee has uncovered major irregularities in Pakistan’s Federal Lodges and Federal Government Employees Housing Authority, including illegal allotments, unpaid rent worth millions, and flawed housing ventures. The revelations came during a meeting of the Public Accounts Committee (PAC) subcommittee, chaired by Muhammad Moin Amer Pirzada, which reviewed audit objections against the Ministry of Housing and Works from 2011 to 2023. Serious irregularities were also discovered in the Federal Government Employees Housing Authority’s (FGEHA) projects. An irregular joint venture with Best Construction Builders caused Rs. 885.5 million in losses on a Rs. 8.85 billion apartment project in Lahore. Another Rs. 1.49 billion housing venture was also flagged for irregularities. Both cases have been referred to the Federal Investigation Agency (FIA). Officials also revealed that rooms and suites in the Federal Lodges had been permanently allotted to officers of the National Accountability Bureau (NAB) which is an unauthorized practice. Ten NAB officers have reportedly been residing there since 2012 without proper approval. Senator Saleem Mandviwalla blasted the ministry over the “embarrassing” state of the lodges, saying electricity had been disconnected and the premises now resembled “a haunted house.” The committee ordered a special audit of the entire complex and demanded a complete list of occupants. The subcommittee learned that Rs. 15.6 million in rent remains unpaid by various government employees living in official residences without payment. It ordered that dues be deducted directly from salaries and that all pending payments be recovered from federal and provincial staff. Senator Mandviwalla described the findings as a “major scandal”, warning that more irregularities could emerge once a detailed investigation is completed. The committee demanded a 30-day report and warned that official records for Federal Lodges II which are missing since 2015, must be recovered.