Every year the Municipal Corporation Rawalpindi (MCR) losses more than Rs 182 million approximately due to the alleged corruption and irregularities in the assets management of the department, Daily Times learnt.
The official documents available with Daily Times show that the MCR has more than 2,800 properties, including shops, petrol pumps, canteens, and cinema, which they had leased to different government departments and general public. MCR receives Rs 85 million annually as rent against these properties, much lesser than market value.
According to Punjab Local Government (Property) Rules 2018, the public body shall ensure that the rented property fetches the maximum rent, but the property of the department which is mostly situated in the main commercial areas of the city are at minimum rent. The average rent of private shops in the same area is more than Rs 80,000, while the average rent of municipal corporation’s shops in these areas ranges from Rs 500 to Rs 1,000 per month only, data availed through RTI shows.
Additionally, property rules of the corporation say that lease holders are not eligible to transfer or sell the shops to anyone else, but allegedly with the support of department’s officials and traders unions, more than 80 percent shops are sold out for millions of rupees to others.
The audit reports have also highlighted the mega corruption and irregularities in the assets management of the department, but the public body never tried to re-auction its assets.
Para-05 of the recent audit report stated that during audit it was notices that these shops/properties were allotted to people since long (more than five years), these properties were required to be re-auctioned after 2001, Moreover, the rent agreements along with original files were also missing in the record.
Audit report further pointed out that audit team during a visit of the markets its notice that rent of the other shops in the same locality was very high while the rent of the shops being collected by the department is very low, which result in loss of amounting to Rs 182.378 million per year.
An official of MCR, wishing anonymity said the lease agreement of almost all properties expired many years ago, but due to the negligence of the officers, the property is not leased again.
The Local Government and Rural Development Department – Punjab through his letter No. SOIII(LG)2-11 dated 30th May 2002, directed the public body to re-auction the contract of the shops, but authorities concerned in the department kept that letter under the table and did not took any notice.
Sources said, the officials of the Tax & Revenue Department MCR are the basic hurdle in the re-auctions of these properties, as they do not inform the higher authorities about the exact situation. Moreover, they allegedly get heavy bribe money when any shops owner illegally sales or sub-let these properties.
While answering a question regarding the irregularities in the assets management, Muhammad Azad – Superintendent Tax MCR – it is a fact that majority of the shops have been sub-let, but it is not only in Rawalpindi. If the government properties in any big city are investigated such irregularities will be also being found there, he added. Despite multiple attempts the Chief Officer MCR could not be reached for comments.