Massive Corruption Scandal Exposed in Famous Housing Scheme in Islamabad

A massive corruption scandal has rocked the Federal Government Employees Housing Authority (FGEHA), revealing alleged embezzlement within its Park Road Housing Scheme.

The scheme, purportedly marred by forged payments for work never executed, has sparked investigations into suspected collusion among contractors and project officials.

Reportedly, the contractor, in collaboration with the project director and others, obtained a mobilization advance of Rs. 719 million through a counterfeit bank guarantee.

Moreover, discrepancies in interim payment certificates (IPC) and irregularities in quantities and additional contractual incorporations have surfaced, raising serious concerns.

The FGEHA Executive Board convened a meeting on Thursday, chaired by Federal Secretary Housing Dr. Shahzad Khan Bangash, to address the alarming revelations.

Expressing profound apprehension over the apparent fraudulence, the board has ordered a thorough inquiry to identify and hold accountable those responsible for the malpractice.

The Park Road Housing Scheme, a collaborative endeavor between FGEHA and the Supreme Court Bar Association (SCBA), situated near COMSATS University on Park Road, encompasses 4,781 plots. Of these, 2,088 are allocated for FGEHA while 2,693 are designated for SCBA members.

Initiated pursuant to Supreme Court orders issued in April 2015, the scheme aimed to acquire land on a parity basis, with 50% allotted to SCBA and the remaining to federal government employees.

FGEHA Director General Muhammad Zafar Iqbal has pledged stringent action against implicated parties. The project director has been suspended pending investigations, with the case referred to the Federal Investigation Agency (FIA) for further scrutiny.

Scrutiny of IPC-3 uncovered alarming figures, with discrepancies in amounts verified by the engineer representative (ER). The abrupt escalation of costs, coupled with suspicious timelines, underscores the magnitude of irregularities in the project.

Following the referral to the FIA, on-site activities have been halted for 15 days. Additionally, the FGEHA has urged consultant Nespak to replace the engineer and ER promptly, advocating for disciplinary measures against them.

The contractor has been formally instructed to furnish a valid bank guarantee in adherence to the contract terms. Concurrently, the matter has been escalated to the relevant ministry for a comprehensive inquiry into counterfeit bills and forged bank guarantees.

Last week, the SCBA voiced concerns regarding alleged fraudulence in the scheme, prompting a dialogue between FGEHA and SCBA representatives. The authority has shared its actions against the perpetrators with the SCBA, aiming to reassure stakeholders amidst escalating controversy.

The Park Road Housing Scheme has been beset by challenges since its inception, facing resistance during land acquisition due to discrepancies in government rates. Negotiations with local landowners are underway to resolve outstanding issues amicably, marking a concerted effort to salvage the project’s integrity.

Via: Dawn

  • FGEHA is itself corrupt to the core. Many of their projects are also on halt due to irregularities. I am myself a victim of their project which is 8 years late.

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