Latest news with #Rawalpindi-IslamabadMetroBusProject
Express Tribune
16-07-2025
- Business
- Express Tribune
Scandal-hit RDA abolishes CDR system
The Rawalpindi Development Authority (RDA) has scrapped its Call Deposit Receipt (CDR) system after it became the conduit for the transfer of Rs1.94 billion from the authority's accounts. In its place, a new foolproof financial system has been implemented, under which all payments to companies, firms, and individuals will be made strictly through cross cheques. Investigations into the scandal are currently underway, with both the Punjab government's fact-finding committee and the National Accountability Bureau (NAB) actively probing the matter. During the third session of the committee, held in Lahore, former RDA officials and current employees failed to provide satisfactory responses to the committee's questions. Written statements were demanded from all those summoned, which will be scrutinised in the upcoming sessions. The scandal first came to light in the second week of May 2025, following the alleged suicide of a former RDA deputy director of finance in Sialkot. A review of financial records revealed that the CDR system had been introduced in 2016 after a significant deduction was made from RDA's account by the income tax department at the start of the Rawalpindi-Islamabad Metro Bus Project. Initially, the CDR system operated transparently between 2016 and 2019. However, records from 2020 to 2025 revealed that CDRs based on the RDA's account balance were used to transfer funds to the bank accounts of various companies, firms, and individuals. Letters were written requesting the issuance of new CDRs in their names. Officials with financial signing authority, including the Director General and director finance at the time, allegedly displayed gross negligence, allowing these transfers to proceed undetected. The discrepancy was discovered only after the newly appointed Director of Admin and Finance, Ahmed Sohaib Qazi, conducted a thorough review of the financial records. In response, RDA has now eliminated the CDR mechanism and implemented a secure payment system. Under the new protocol, cross-cheques will only be issued after the director general, director of finance, and deputy director of finance have verified the complete documentation and affixed their signatures. Banks will only process these cheques after verifying them with RDA. Meanwhile, the fact-finding committee, formed by Punjab Chief Secretary Zahid Akhtar Zaman and led by Board of Revenue Member (Taxes) Mudassar Waheed Malik, includes members Moazzam Iqbal Supra and Madiha Tahir Shah. The committee held its third session on July 14 in Lahore, where several former and current RDA finance officials appeared. Two former officials who claimed ignorance about the preparation and signing of the CDRs failed to convince the committee. Another employee, whose wife received Rs1.8 million in her bank account, also failed to offer a satisfactory explanation.
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.
