Staff Report
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal said on Wednesday that the federal cabinet had approved the Joint Investigation Team (JIT) report on alleged irregularities in the project, marketed as One Constitution Avenue, recommending legal action against those responsible, blacklisting of the developer and compensation for affected investors.
Addressing a press conference alongside Federal Minister for Information and Broadcasting Attaullah Tarar and Minister of State for Interior, Talal Chaudhry, the minister said the inquiry had been initiated on the directions of the Prime Minister, following allegations of fraud and irregularities in the project situated on Constitution Avenue, Islamabad.
He said the JIT report was presented before the federal cabinet, which considered and approved its findings. The investigation team comprised representatives of the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), and other relevant security and intelligence institutions, including the ISI.
Ahsan Iqbal said the JIT had identified serious irregularities and manipulation in the project, observing that the bidding process was rigged, rules were relaxed to favour certain interests, and the lease was awarded to a company that did not qualify on merit.
He said the Capital Development Authority (CDA) had been found negligent and allegedly involved in the irregularities. The requirement for a bank guarantee was also removed to facilitate the developer, while the bidding process itself was found to be suspicious and manipulated.
The minister further said the project, originally approved as a five-star hotel, was subsequently marketed and sold as residential apartments, despite the alleged illegal nature of such sales.
Referring to the JIT findings, he said Abdul Hafeez Sheikh had been identified as the alleged mastermind of the scheme, who reportedly acted in connivance with CDA officials.
He said the report had also identified the alleged involvement of former CDA chairman Kamran Lashari, Dr Faisal Awan, retired Azhar Ali Chaudhry, retired Brigadier Nasrullah and the late Rai Nawaz Kharal in the irregularities.
The minister said the alleged wrongdoing had caused losses to the national exchequer and exploited the financial vulnerability of ordinary Pakistanis, many of whom had invested their hard-earned savings in the project.
Outlining the recommendations of the JIT, Ahsan Iqbal said Abdul Hafeez Sheikh and his company should be blacklisted from participating in all future public-sector projects and appropriate legal action should be initiated against them.
He said the investigation had also recommended a fresh and transparent review of the project, taking into account its original purpose and obtaining the necessary security clearances and approvals from all relevant institutions.
The minister said a comprehensive framework should be developed for future projects to prevent similar irregularities, while fire safety measures and other mandatory protocols must be ensured.
He further said the project should be renamed as the title ‘One Constitution Avenue’ had allegedly been obtained through fraudulent means.
Explaining the controversy surrounding the project’s name and address, he said the Ministry of Foreign Affairs was the first building situated on Constitution Avenue and had also asserted its claim to that address. He said the address had allegedly been used for marketing purposes to attract investors and promote the project.
Ahsan Iqbal stressed that the government had a responsibility to protect Pakistani citizens who had invested their savings in the project and had been deceived.
He said the government had decided that affected investors would be compensated; with their principal investment refunded and the applicable interest adjusted accordingly to ensure that they did not suffer financial losses.
The minister also announced that the JIT had recommended a comprehensive overhaul of the CDA, including amendments to its governing ordinance and the establishment of an independent Master Plan Commission to prevent the recurrence of such irregularities.
He said all official records should be digitised to eliminate the possibility of manipulation, while officials serving in the Town Planning, Enforcement and Building Control departments should be rotated after every two years.
He observed that certain officials had remained posted in the same offices for 10 to 20 years, creating opportunities for entrenched irregularities and corrupt practices.
Regular rotation of officials, he said, would help close avenues of corruption and improve transparency in the authority’s functioning.
The JIT had also recommended the introduction of pre-audit mechanisms for auctions and contracts through independent third parties to strengthen financial oversight and ensure transparency.
Ahsan Iqbal said NAB had been directed to initiate a comprehensive investigation in the light of the JIT report against all individuals found involved in the matter, including those whose signatures appeared on the relevant documents.
He added that the accountability bureau should also investigate whether any individuals involved were being protected by other institutions or influential quarters, ensuring that the investigation proceeded comprehensively and strictly in accordance with the law.
