Latest news with #CDRs
Express Tribune
5 days ago
- Business
- Express Tribune
RDA scam suspects in the NAB crosshairs
The National Accountability Bureau (NAB) has summoned two retired officials in connection with the Rawalpindi Development Authority (RDA) financial scandal. The summons were issued for Thursday (today) following their nomination as suspects by the RDA administration. The accused include former Director Asif Mehmood Janjua and retired Assistant Director Khawaja Arshad Javed. According to the NAB notice, both individuals are required to explain why they issued instructions to the bank regarding the issuance of Certificates of Deposit (CDRs), despite allegedly lacking the authority to do so. The bureau has asked them to provide a detailed explanation for their actions, submit complete records related to the CDRs, and furnish the names and details of all recipients. The notice further warned that failure to appear or comply would result in legal action in accordance with the law. This development marks a significant step in NAB's investigation into alleged financial irregularities within the RDA. More details emerge of scam Investigations have revealed that large sums of money were transferred to various companies, vendors, and individuals through Call Deposit Receipts (CDRs). These transactions were traced with the help of bank records and a report compiled by RDA's probe committee, which has now been provided to the investigative authorities. The companies and vendors involved in these transactions include MS Addad (Rs393.17million), Car Specialist Network (Rs11 million), Pothohar Associates (Rs74.26 million), SNK & Company (Rs324.46 million), Silver Stone (Rs339.4 million), and Smart Cubed (Rs309.77 million). RDA's investigation is currently comparing these transactions with records from the relevant banks. Meanwhile, a probe committee formed by RDA's Director-General Kanza Murtaza under Director State Management Nasir Shehzad Gondal has issued a report. The committee noted significant negligence and carelessness in RDA's Finance Department and found that the bank involved failed to verify the transactions with authorities before processing them. The committee concluded that the preparation of CDRs was an overstep of authority and illegal. As a result, the committee has recommended that the case be forwarded to the ACE and other relevant agencies to recover RDA funds and further investigate the irregularities.
Express Tribune
25-05-2025
- Business
- Express Tribune
RDA scam sparks NAB probe
An alleged embezzlement scandal involving Rs1.94 billion in the Rawalpindi Development Authority (RDA) has raised serious questions about negligence and misconduct by top officials over the past nine years. According to sources, the scandal reportedly implicates former and current director generals and directors of administration and finance, all of whom had signatory authority over the RDA's financial affairs. The matter has now been transferred to the National Accountability Bureau (NAB) via the Punjab Anti-Corruption Establishment for further investigation. According to sources, over the last nine years, payments amounting to nearly Rs1.94 billion were made from RDA's bank accounts to fictitious companies posing as registered vendors. These transactions were conducted through Call Deposit Receipts (CDRs), with around 21 transactions linked to eight companies and thirteen individuals. Standard operating procedures (SOPs) for financial dealings within the RDA were reportedly ignored, and the signatory authority granted to the director general and director admin & finance was misused. Meanwhile, the responsible authorities failed to monitor bank account activity or audit financial records held both in RDA offices and in the respective banks. Following the revelation, NAB has started collecting relevant documents from the RDA and corresponding banks. Letters have also been sent to the private banks involved, requesting transactional records. This has created a troubling situation for all individuals who held the roles of director general or director admin & finance during the past nine yearswhether in service or retired. Questions are being raised as to why they failed to oversee the issuance of CDRs, track their reference letters, and review how funds were funnelled to various companies and individuals. According to sources, investigations aim to identify the public officials, fake companies, and individuals involved in the scam, with the ultimate goal of recovering the embezzled public funds. Legal action is expected against those who received payments either as company representatives or in a personal capacity. On the other hand, the RDA has prepared a proposed Annual Development Plan (ADP) for the fiscal year 2025-26. The plan, which awaits final approval from the Punjab government, includes major infrastructure initiatives under the "Urban Development Package" and "City Development Package." The proposed projects consist of three underpasses, one flyover, a multi-storey parking plaza, and several road infrastructure schemes. Each development initiative has been recommended by the respective members of the national and provincial assemblies.
Express Tribune
22-05-2025
- Business
- Express Tribune
RDA sends corruption case to anti-graft body
A financial scandal involving alleged embezzlement at the Rawalpindi Development Authority (RDA) has expanded in scope, with the misappropriated amount now estimated at Rs1.94 billion, up from an earlier Rs1.64 billion. In response, RDA Director General Kanzeh Murtaza has referred the case to the director general of Punjab's Anti-Corruption Establishment for investigation. The alleged scam is believed to have stemmed from weak financial discipline and a lack of oversight from authorised officials over the past decade. According to sources, since fiscal year 2016-17, funds received by the RDA from the Metro Bus Project and other sources were reportedly disbursed via Call Deposit Receipts (CDRs) to various companies and fictitious vendors. The issue came to light roughly two weeks ago when a discrepancy in the RDA account balance prompted an internal review. Following this, an inquiry committee was established by the RDA DG. The committee was able to retrieve some records from a single bank but faced obstacles in obtaining documentation from other private banks. Attempts to register a First Information Report (FIR) at city police Station were unsuccessful, with police citing jurisdictional limitations. Consequently, a formal reference was submitted to the Punjab Anti-Corruption Establishment. Sources suggest that the involvement of private banks and the large scale of the embezzlement - approaching Rs2 billion - could lead to the case being forwarded to the Federal Investigation Agency (FIA) or the National Accountability Bureau (NAB).
Express Tribune
19-05-2025
- Business
- Express Tribune
Punjab ACE to probe RDA scam
In light of weak financial discipline within the Rawalpindi Development Authority (RDA), a major embezzlement scandal involving Rs1.64 billion in public funds has come to light. Talking to The Express Tribune on Monday, sources said authorities have decided to refer the matter to the Anti-Corruption Establishment Punjab for investigation. Depending on the findings and nature of the case, it may also be forwarded to the National Accountability Bureau (NAB) or the Federal Investigation Agency (FIA), based on recommendations from the anti-corruption body. According to the sources, the embezzlement is linked to RDA's role as the executing agency for the Rawalpindi-Islamabad Metro Bus Project. Starting in fiscal year 201617, RDA received its share of project funds, which, along with other public funds, were allegedly transferred over a prolonged period to various companies via Call Deposit Receipts (CDRs) from official RDA accounts. Initially, the suspected embezzlement amount was estimated at Rs3 billion. However, a detailed review of the CDR records confirmed the misappropriation stands at approximately Rs1.64 billion. In response, RDA Director General Kinza Murtaza first constituted a departmental inquiry committee comprising RDA officers. It included Director Admin and Finance Qazi Sohaib Ahmed, Director State Management Shehzad Nasir Gondal, Director Land Malik Ghazanfar Awan, and Director WASA Tahir Bashir, among others. However, during internal consultations, concerns were raised that while a departmental inquiry may establish facts, it lacks the authority to recover misappropriated funds or hold individuals accountable. Therefore, it was decided to treat the matter as a formal reference and forward it to the Anti-Corruption Establishment Punjab. Additionally, due to the suspected involvement of private banks in the transactions, the Anti-Corruption Establishment Punjab has the discretion to escalate the case to NAB or FIA as deemed appropriate. Meanwhile, several RDA officials who were in service during the period of the alleged embezzlementand who have since retiredhave been summoned by the DG RDA. Some have already appeared before the authority to present their statements, while others are expected to report soon. The sources further revealed that a special team within the RDA has already retrieved significant documentation and has identified the specific banks where funds were transferred into private company accounts. These banks have been formally requested to freeze the relevant accounts to prevent the withdrawal or disappearance of public money and to facilitate the possible recovery of misappropriated funds. It is important to note that authority for cash transfers and other financial matters rests jointly with the institution's head and the departmental chief. Despite multiple attempts, Director General Kinza Murtaza could not be reached for comment on the alleged financial scandal.
Express Tribune
17-05-2025
- Business
- Express Tribune
Rs1.5b financial scandal hits RDA
A major financial scandal has come to light within the Rawalpindi Development Authority (RDA). Allegations point to an embezzlement of approximately Rs1.5 billion, dating back to fiscal years 2016-2017. According to sources, relevant officials are now expected to face questioning. An internal inquiry committee has been constituted, and the matter may be referred to the National Accountability Bureau (NAB). Sources said the RDA — the executing agency behind major infrastructure projects such as the completed Rawalpindi-Islamabad Metro Bus and the under-construction Ring Road project — has long engaged in a practice of issuing Call Deposit Receipts (CDRs) despite having funds available in bank accounts. This was allegedly done to avoid income tax deductions. However, senior officers reportedly failed to maintain transparency and financial discipline in the process. By protocol, all financial transactions with the bank require joint authorisation from the agency's head and the head of the relevant department. Initially, reports suggested that Rs3 billion in RDA funds were missing. That figure was later revised down to Rs1.5 billion, prompting an internal investigation after years of silence on the issue. RDA Director General Kinza Murtaza has now constituted an internal inquiry committee to investigate the alleged financial misconduct. The committee includes Director Admin and Finance Qazi Sohaib Ahmed, Director State Management Shehzad Nasir Gondal, Director Land Malik Ghazanfar Awan, and Director WASA Tahir Bashir, among others. The committee is expected to summon retired RDA officials as part of the probe. Sources say the committee has yet to obtain any records from the bank. Relevant RDA officials are currently in contact with the concerned bank to secure documentation. The investigation will aim to verify the issuance of the CDRs and trace the actual recipients of the credited funds. According to internal findings so far, CDRs amounting to Rs1.5 billion were credited to various individuals and entities. It is important to note that authority for cash transfers and other financial matters rests jointly with the institution's head and the departmental chief. Despite multiple attempts, Director General Kinza Murtaza could not be reached for comment on the alleged financial scandal.
