Daily Times

KARACHI: Federal Investigating Agency (FIA) has initiated a forensic audit of housing societies and schemes registered under the Co-operative Housing Societies Act or any other federal and provincial law in compliance with the Supreme Court’s directives.

Earlier, FIA was directed to submit forensic audit reports of housing schemes in Multan and Islamabad by the Supreme Court of Pakistan (SCP). After receiving these reports, the SCP further directed FIA to begin forensic audit in other cities including Karachi.

According to FIA officials, a joint investigation team comprising of officials of FIA, National Accountability Bureau (NAB), Anti-Corruption Establishment and Revenue Department has been formed to look into the matter at district level. Reportedly, FIA Additional Director Abdul Hameed Bhutto is heading the joint investigation team.

In a notification issued on September 11 by Basharat M Shahzad who is serving as the additional director general of FIA Anti Corruption wing, representatives of 18 federal, provincial and military land control cooperative societies have been asked to submit details of the respective bodies and cooperate with the FIA team.

According to FIA officials, this step was taken in compliance with SCP’s directives in order to improve legislation. FIA officials were of the view that the forensic audit would be accomplished within a timeframe of 3 months.

Meanwhile, Sindh Building Control Authority (SBCA) Master Plan Department which controls 33 percent of Karachi’s land has constituted six teams which have already began working with FIA’s joint investigation team, confirmed SBCA officials. Keeping in view the urgency of the matter, these bodies were requested to put forward suggestions and proposal by September 15, 2018, officials added.

The objective of forensic audit is to ascertain weaknesses in existing laws. Taking advantage of these loopholes within the law, builders and cooperative housing scheme members have been looting investors’ and buyers’ money through receiving commissions by indulging in practices like fraud, embezzlement and cheating in areas of procurement of land, development work, lay out plan violation, allotment of areas and sale of fraudulent files.

Before this, the apex court had directed FIA Director General to go through these reports and submit recommendation regarding amendments required in laws regulating housing sector in consultation with federal, provincial law department and other stakeholders in order to safeguard interest of public.

The institutions which were served notices included military land control, six cantonment boards, Karachi Development Authority, Malir Development Authority, Lyari Development Authority, Karachi Port Trust, Port Qasim Authority, Pakistan Steel Mills, Pakistan Civil Aviation, Pakistan Railway, Defence
Housing Authority, Pakistan Administrative Cooperative Housing Society, Board of Revenue and Sindh Building Control Authority Master Plan Department.

Around 1,100 cooperative societies are active in Karachi and cooperative society district registrar is controlling 980 cooperative housing societies in city. A larger portion of such societies lies in Scheme 33, Pakistan Cooperative Housing Society under federal control and military land control schemes.

Published in Daily Times, September 26^th 2018.