CDA involved in Grand Hayat Hotel scam: FIA

Author: By Muhammad Asad Chaudhry

ISLAMABAD: The Director, Federal Investigation Agency (FIA), has informed the senate committee that the higher ups of the Capital Development Authority (CDA) were involved and responsible for extending illegal favours to Grand Hayat Hotel while sharing the outcomes of a probe initiated by FIA in this regard. The senate body has sought the names of all those, who were involved in this case.

The senate body on interior met here at the Parliament House Islamabad under the chairmanship of Senator Rahman Malik to discuss the irregularities made by the CDA in the case of Grand Hayat Hotel owned by the BNP group.

While briefing the committee, the Director FIA Dr. Usman Anwar, declared the whole case as an example of malpractices, favouritism and corruption and informed that malafide intention was involved in the case from day one, when the Authority auctioned a plot measuring 13.5 acres at a price of Rs. 75,000 per square yard, which was comparatively a low price as compare to the then market price.

He said that at the time of auction the Authority had imposed a condition that only those firms can take part in bidding, which have dual expertise of construction and hotel management. In response a total of nine firms showed their interest in bidding, but only seven were left for the purpose because of strict conditions imposed by the Authority.

The BNP group was not a sole company, but it was a collation of four companies, in which one had the reputation in hotel management and the others in construction. The bidding was secured by the BNP group as whole, but later on the CDA signed a sale agreement with the BNP private limited company by violating auction rules as it did not have the experience of hotel management because three other companies refused to become a part of the agreement, the Director FIA added.

He maintained further that instead of the one-year time mentioned in the contract for making full payment of the plot, the CDA gave the allotted firms three years to clear the payment by making post bid changes in the terms and conditions of the allotment letter, which was also against the rules and regulations of the civic body.

“The hotel owner also sold the service apartments as commercial apartment in connivance with the CDA officials, which caused a loss of seven billion rupees to the pubic exchequers”, the director informed further.

While responding on the findings of the probe, the Member Planning of the CDA Board, Wasim Ahmed Khan, admitted of the wrong doings on the part of the CDA.

Senator Syed Shibli Faraz lambasted on the CDA officials and said; “CDA is one of the most inefficient and corrupt institutions of our country.” He said further; “nobody can do a business in Islamabad as one officer of the CDA gives illegal approvals and the other spends his tenure to fix those illegal actions, but simultaneously he also does other irregularities to fix what his successors did.”

Waseem Ahmed Khan, while answering the Senator said, that “we cannot give a legal cover to those irregularities made by the Authority in the past and we are responsible for our era; whereas, we have cancelled the lease agreement of Grand Hayat Hotel as it was illegal”.

Senator Shahi Syed sharing the burden of the CDA said; “only the CDA is not responsible for the whole case, but politicians are also a part of the game and without our involvement no illegal thing is possible.”

The Chairman Committee, Senator Rehman Malik directed the FIA to present the names of all those involved in favouring the Grand Hayat Hotel management.

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