Public Accounts Committee Irked Over CDA’s Financial Irregularities

The Public Accounts Committee (PAC), chaired by Junaid Akbar, reviewed the audit report of the Capital Development Authority (CDA) for the fiscal year 2023-24. The session revealed major irregularities, including the non-transparent auction of 29 commercial plots and the absence of financial statements. Audit officials disclosed that the CDA Board had approved the auction of these plots for over Rs. 37 billion, yet the process lacked transparency. Five plots were postponed, and one faced legal complications, raising questions about why such issues were not considered before approval. During the session, PAC members expressed strong dissatisfaction over CDA’s failure to prepare financial statements. The committee chair questioned why the CDA had not submitted financial reports despite being legally obligated under the CDA Act to provide audited statements to the federal government. Audit officials warned that violating the ordinance could lead to legal consequences, including imprisonment. The meeting further revealed that the CDA had never prepared financial statements in its history. CDA’s Finance Member acknowledged the lapse but assured that the financial statement for 2023-24 was currently being prepared. PAC members also criticized the conduct of CDA Chairman during the session. Senator Bilal Mandokhail objected to his dismissive attitude toward audit officials, questioning why he told them to “just read the report” instead of addressing their concerns properly. Following the criticism, the CDA Chairman apologized to the committee, admitting that his approach might have been inappropriate and assuring that he would be more mindful in the future. The committee also scrutinized the auction process, highlighting that while the CDA Board approved the auction of 29 plots, only 22 were actually auctioned. Audit officials stated that the failure to implement the board’s instructions made the process non-transparent. PAC members condemned this mismanagement and insisted on greater accountability in the auction process. In response to the ongoing financial and administrative concerns, the PAC issued a six-month deadline for the CDA to finalize and submit its financial statements. The committee ordered that progress updates be shared monthly to ensure compliance. The Secretary of the Interior apologized to the PAC for the CDA’s failure to prepare financial reports, while the committee remained firm in its demand for transparency and proper financial management in the authority’s operations.