This page is updated, as and when I come across any news related to the above persons or organizations.
24/11/2014
ISLAMABAD: The Rawalpindi district collector has claimed before the Supreme Court that the total area, which the Punjab Forest Department claims has been encroached by Bahria Town, is in fact 215 acres and not 684 acres as previously claimed.
“After superimposing the map of Rakh Takht Pari on a satellite image, the Urban Unit (of the Punjab government) worked out that the total area of Takht Pari Forest is 1,741 acres not 2,210 acres,” said a report submitted by Rawalpindi District Coordination Officer Sajid Zafar Dall, in his capacity as the district collector.
On Oct 25, a three-judge bench of the Supreme Court, headed by Chief Justice Nasirul Mulk had ordered the district collector to submit a comprehensive report regarding the demarcation of forest lands, allegedly encroached by Bahria Town (Pvt) Ltd in 2005. The land is originally owned by the Rawalpindi Forest Department.
The directions were issued during suo motu proceedings initiated on an application filed by Malik Muhammad Shafi in 2009, highlighting the destruction of forest and the illegal acquisition of land by Bahria Town in the Rakh Takht Pari area. In his application, Mr Shafi had alleged that revenue officials colluded with Bahria Town in the acquisition of the land.
Court told accurate demarcation no longer possible due to excessive construction in the area
The current dispute, according to the Forest Department,related to the illegal occupation by Bahria Town of 684 acres of land in Rakh Takht Pari.
Located about six kilometres outside of Rawalpindi city, near G.T. Road, Rakh Takht Pari was originally transferred to the Forest Department in August 4, 1856.
An earlier report of the Punjab government had suggested that almost the entire area of Rakh Takht Pari consisted of natural shrub forest. Neither the Takht Pari forests nor the private holdings in the area had been previously identified or earmarked, the report said.
The Supreme Court, however, ordered Rawalpindi District Forest Officer Abid Majid to come up with objections and submit original proofs to contradict the district collector’s report.
Meanwhile, Bahria Town’s counsel Advocate Ali Zafar maintained his original position that the Supreme Court had no jurisdiction to intervene in a private land dispute between Bahria Town and the Forest Department saying that the matter should be settled by the concerned court through a private civil suit.
In the latest report, the collector has clarified that the Punjab government’s urban unit is in possession of 1,526 acres and 215 acres may be considered encroached.
In an earlier demarcation, conducted in 2007, the report explained, encroachment of 146.25 acres was found and settled through exchange mutations, which have been upheld by the Punjab Board of Revenue.
However, the report assured the court that the district revenue authorities will further examine the remaining encroachment and work out the exact quantum of illegally occupied lands, either by Bahria Town, the Defence Housing Authority (DHA), Agosh Town and/or others.
Highlighting the discrepancy in the records of the forest department, the report stated that physical demarcation was not possible in the area because area surrounding the land in question has been built-up area.
Permanent points, which are essential reference points for field demarcation, are no longer in their original shape. Housing colonies, including Bahria Town, DHA, Agosh Town etc have been developed on almost all sides and residential units, commercial plazas and markets have mushroomed in the area. Since the land has practically assumed an urban character, there are serious issues with the demarcation process, the report said.
See: http://www.dawn.com/news/1146335/official-estimates-of-forest-land-inaccurate
26/10/2014
SLAMABAD: The Supreme Court has ordered Rawalpindi District Coordination Officer (DCO) Sajjid Zafar Dall to submit a demarcation report of around 1,416 acres of forest land, allegedly encroached upon by the Bahria Town Housing Society in 2005. The land was originally owned by the Rawalpindi Forest Department.
The directions were issued by a three-judge Supreme Court bench, headed by Chief Justice Nasir-ul-Mulk that had taken up a suo motu hearing on an application by Malik Mohammad Shafi.
In his petition, Shafi contended that Bahria Town acquired two separate pieces of land illegally and destroyed the forest area there to make way for housing units.
The application was first moved in 2009, where the applicant alleged that the pieces of land were illegally occupied, in collusion with revenue department officials.
Punjab govt yet to furnish demarcation report, keeps asking for more time
The dispute involves the illegal occupation of 684 acres in the Rakh Takht Pari forest and 732.5 acres of Lohi Bheer forest by Bahria Town.
When the case was last heard on May 13, 2013, then-Rawalpindi DCO Rashid Mehmood and Divisional Forest Officer (South) Ijaz Ahmed told the Supreme Court that Islamabad police and Rangers personnel had thwarted an attempt by the forest department to demarcate the land in the Takhat Pari area on September 7, 2011 by imposing a ban on ‘unlawful assembly’ in the area.
The court was told that this was done at the behest of Bahria Town, whose management had also held forest officials hostage for a couple of hours.
The former DCO had also told the court that the Rawalpindi Board of Revenue had already cancelled the mutation entries of these lands in favour of Bahria Town on September 10, 2012.
Tehsildar (collector) Noor Zaman, who had led the team attempting to demarcate forest land, could identify those law enforcement officials who had prevented them from carrying out their duties, he said.
On July 22, 2014, authorities from Punjab had sought a period of 45 days to submit the land demarcation report, but the court gave them only 30 days and postponed further proceedings for August 25.
When the case taken up again, another request was made on behalf of the DCO, seeking more time. The court then gave them another three weeks.
On Oct 20 this year, Additional Advocate General Punjab Razzaq A Mirza had told the apex court that despite earlier court orders, the demarcation report had not yet been finalised.
He told the court that demarcation had been carried out by a specially-constituted committee and employed modern global positioning (GPS) technology as well as old maps from the Survey of Pakistan.
Now, proceedings in the matter have been adjourned until November 17, when the DCO has been asked to appear in person with the report.
Takhat Pari is located at six kilometres from Rawalpindi city near G. T. Road with a total area of 2,210 acres. The land originally transferred to the Forest Department in August 4, 1856.
An earlier report submitted by the Punjab government suggested that nearly all of the Rakh Takht Pari area is natural shrub forest, dominated by “phulai and sanatha bushes”.
Neither the Takht Pari forests or private holdings (mostly shamlat) were previously identified or earmarked, the report said.
The Bahria Town management had allegedly begun construction on the encroached lands by developing roads and residential areas in the Takhat Pari area, knowing full well that the land belonged to the forest department.
Bahria Town’s counsel Ali Zafar, meanwhile, challenged the jurisdiction of the Supreme Court to hear the matter, arguing that the case at hand concerned a private piece of land and the dispute was between Bahria Town and the forest department, which should be settled by the concerned court through a civil suit.
He asked how the Supreme Court could take up the matter when a civil suit filed by Bahria Town is currently pending before a Rawalpindi civil judge and a number of ordinary civil suits are also being heard by other courts.
See: http://www.dawn.com/news/1140473/sc-seeks-report-on-forest-land-allegedly-occupied-by-bahria-town
13/09/2014
ISLAMABAD: The Islamabad High Court (IHC) on Thursday directed the chairman Capital Development Authority (CDA) to stop ‘illegal construction’ in Bahria Town and submit a compliance report to the court within a week.
Justice Athar Minallah passed the restraining order on a petition filed by the association of residents, Bahria Town.
Last year, the petitioners had filed an application with the CDA to stop the housing society from violating the layout plan according to which the Bahria Town management had to develop public parks, mosques, schools, greenbelts and other utilities on the land reserved for public services.
The petitioners approached the IHC in May last year, saying they purchased costly plots in the housing society but the town management sold out the amenity plots after developing them for commercial purposes.
IHC issues directions on a petition filed by residents’ association
They requested the court to direct the CDA to restrain the Bahria Town management from commercialising the amenity land.
The CDA legal adviser, Ataullah Kundi, submitted a report to the court confirming that the housing society had violated the layout plan and converted a number of greenbelts, parks and even land reserved for mosques into commercial plots. The court observed that the “CDA has completely failed to perform its statutory obligations. Prima facie, it seems quite disturbing that the no-objection certificate (NOC) was issued to Bahria Town on July 7, 2001, and the regulator first time visited the site on May 4, 2013, after the petition was filed.”
The court directed that “the CDA chairman shall constitute a team of officials, who shall visit the housing scheme and ensure that any construction in violation of the NOC granted in 2001 shall be forthwith stopped till the decision of a show-cause notice” issued by the authority.
After the court issued its written order, the management of Bahria Town filed an application against it with the IHC through their counsel Barrister Aitzaz Ahsan and Barrister Gohar Ali Khan. In the application, the housing society requested the court to recall the order.
Talking to Dawn, Barrister Gohar claimed that Bahria Town did not violate the layout plan. He said the construction in the housing society had been carried out under the light of an order passed by the Lahore High Court (LHC) in 2004.
On July 8, 2004, Justice Akhtar Shabbir of the LHC directed the CDA to approve the layout plan of the housing society. The civic body filed an appeal against the order with the LHC, saying that approving the layout plan to any housing society was the sole prerogative of the CDA and the court could not pass such a direction. After the establishment of the IHC in January 2011, the case was transferred to the IHC.
However, the CDA in April 2012 withdrew the appeal, which enabled Bahria Town management to continue the construction in accordance with their ‘controversial’ layout plan. The CDA was the appellant in the matter and on April 18, 2012, it filed an application with the IHC for the withdrawal of the appeal, stating that the authority was not interested in continuing the litigation against Bahria Town, which was accepted by the court.
It may be noted that following the withdrawal of the appeal, the then CDA legal adviser Mohammad Ramzan Chaudhry, who is the incumbent vice-chairman of the Pakistan Bar Council, resigned from the CDA, saying the withdrawal was against the interest of the civic body.
06/07/2014
OVER several years now, there have been warnings that Pakistan is an increasingly food-insecure country, and large sections of its population are going hungry or are malnourished. There are several reasons for this, from rising prices of daily dietary essentials to increasing rates of poverty and the fact that food production is simply not keeping pace with the needs of a growing population. This is disturbing enough given that this is a country that has a largely agricultural economy. But even more worrying is the manner in which myopia, mismanagement and policymaking for short-term gains at the cost of long-term benefits combine to strip away citizens’ most fundamental rights. Consider, for example, the recent news that the Pakistan Army-managed Defence Housing Authority has planned two major housing schemes in Peshawar. That this is the only news on the sector from the area is in itself surprising because while there is a severe shortage of housing in Khyber Pakhtunkhwa (and the rest of the country), the need is for affordable, low-income dwellings rather than mansions of the sort that are identified with the DHA, and which come with price tags in the multiple millions. But, as if to further insult the poor of the province, there is the location. These schemes are to be established on a vast tract of land that is populated, fertile and being used for agricultural purposes. The area is, indeed, considered the ‘food basket’ of the province and a variety of fruit, vegetables and crops are grown there. Moreover, should work go ahead with these housing schemes, the displacement of some 100,000 people is likely, along with bringing to an end their source of earning — farming.
There are precedents that can be used to show that in the past, policymakers have recommended that agricultural land not be given over for commercial or other purposes. Better sense needs to prevail here. The DHA is a powerful group with interests all over the country; its practice of swallowing land wholesale to build colonies for the elite while leaving the poor dispossessed is amply in evidence. It is for KP’s policymakers and Peshawar’s city planning authorities to intervene and make sure that alternative locations are found. Certainly, cities need to expand. But development must not cater to one section of society at the cost of another. Further, a food-insecure country cannot afford to throw away precious agricultural land.
See: http://www.dawn.com/news/1117365/dha-in-peshawar
05/07/2014
PESHAWAR: The two mega housing projects planned by the Defence Housing Authority in Peshawar have upset the local farming community, who fear the development of the proposed schemes will not only deprive them of a large swath of fertile land but will also adversely affect their livelihood.
The DHA Peshawar, a subsidiary of the Pakistani Army, has planned to develop the two schemes in the suburbs of the provincial capital and recently placed advertisements in newspapers to seek staff though the government has banned sale, purchase and allotment of land in areas specified for the projects.
Officials in the housing department said Chief Minister Pervez Khattak had approved the summary and authorised DHA to develop housing schemes in two Peshawar localities.
They said the revenue department had invoked Section 4 of the Land Acquisition Act, 1894 before banning the sale and purchase of immoveable properties in Wodpaga and portion of land opposite the Regi Lalma Township on Nasir Bagh Road.
Growers fear schemes to deprive them of fertile land, bread and butter
An official said under the DHA Peshawar Act, 2009, the housing department was bound to notify names of the areas allowing DHA to develop housing schemes there.
He said the chief minister had approved the DHA schemes.
The Khyber Pakhtunkhwa Assembly had passed a bill in January 2009 for the establishment of DHA, Peshawar.
The DHA Peshawar, the act says, will function under a governing body, while the Peshawar corps commander will head it as chairman.
The official said thousands of acres land would be acquired for the two projects and that use of land in the specified localities had been granted to DHA.
He said under the law, nobody would be able to develop housing schemes in the areas without the DHA permission.
The farmers and senior government officials have serious reservations about the DHA schemes, which, they fear, will deprive owners of fertile land as well as bread and butter and thus, causing the mass displacement in the area populated by over 100,000 people.
“In principal, this is unfair to develop a housing scheme on agricultural land already inhabited by thousands of people but the government has no other option,” said an official.
He said the housing scheme supposed to be developed either on barren or arid land but the army had its own thinking. “We are the government servants and have to obey the order,” he said.
Former provincial agriculture minister Arbab Ayub Jan, who owns the vast farmland in Wodpaga locality, where one of the schemes has been proposed, said development of housing schemes on agricultural land was a violation of the decision of the provincial cabinets.
He said the provincial cabinets had decided first in 1988, then in 1994-95 and later in 2008-13 that there would be no conversion of agricultural land for commercial and housing activities in future.
The former minister said the proposed schemes would adversely affect population in three union councils by depriving hundreds of families depending on farming of livelihoods.
“It will have negative impacts on economy and environment of Peshawar as 60 per cent fertile land will vanish,” he said, adding that he and other stakeholders would go to the court against the schemes.
Arbab Ayub said Peshawar had already lost its greenery and agricultural land due to the massive influx of people from Fata and settled areas of the province.
He said the areas, where schemes were to be developed, were known for producing a variety of fruits, vegetables and crops and if the area was converted into a housing sector, then the people would have to procure fruits and vegetables from other provinces.
The countryside of Peshawar towards Charsadda district is called ‘food basket’ for producing different agricultural products.
The ‘Landcover Atlas of Pakistan’ designed by the Pakistan Forest Institute in 2012 shows of the total 111,702 hectares of Peshawar district, agricultural area measures 84,138 hectares and that the settlement is on 12,907 hectares, which is 11.6 per cent of the total area.
Former MPA Saqibullah Khan Chamkani said agricultural land in Peshawar had already shrunk due to the unplanned human settlements and that construction of housing schemes on farmlands would ruin agriculture sector.
He said Peshawar was like a ‘food basket’ for the entire province and therefore, the government and other entities should develop housing projects on barren areas.
An official of DHA Peshawar claimed the authority was going to launch housing projects at the request of the provincial government.
He said around six years ago, the then government and governor had requested the DHA to execute housing schemes in Khyber Pakhtunkhwa.
“The (Pakistan) Army is a national institution and for national integration, it should also introduce housing schemes in Balochistan and Khyber Pakhtunkhwa like it has done in Punjab and Sindh,” he said while quoting a paragraph of a letter of the former governor, who wrote to the military leadership.
The official said there was no harm in developing planned housing project, while the mushroom growth of unplanned settlements had encroached on agricultural land.
See: http://www.dawn.com/news/1117227
10/06/2014
ISLAMABAD: A private land developer recently submitted a complaint to the Anti-Corruption Establishment (ACE) Rawalpindi against alleged nexus between the revenue officials and the ‘land mafia’.
But instead of probing the matter, the ACE referred it to the revenue department for adjudication.
In addition to ‘facilitating’ the land mafia, the revenue officials, especially tehsildars and patwaris, were also accused of providing financial support to the local politicians for their political activities.
The complaint filed with the chief secretary Punjab and the director general ACE by Allied Developers stated: “In order to safeguard the interest of the state and its citizens, the nexus of bureaucracy and the Qabza mafia should be broken.”
It cited an example where Additional District Collector (Revenue) Rawalpindi Talat Mehmood Gondal declined to adjudicate a controversy related to a sale deed in order to favour a private housing society.
Dr Mohammad Shafique, the director of the complainant firm, alleged that encroachment on forest land of Punjab and the multi-billion scam of the Employees Old-Age Benefits Institution (EOBI) had been committed in connivance with the revenue officials and the land mafia.
He alleged that in addition to the additional collector and the tehsildar Rawalpindi, a blue-eyed boy of an incumbent federal minister was protecting the land mafia.
After visiting different offices, when the complaint reached the ACE Rawalpindi, it forwarded the matter to the revenue officials against whom relief had been sought by the complainant.
When contacted, ACE Assistant Director Chaudhry Arshad Mehmood said the revenue officials had the judicial powers and would decide the matter.
He, however, said the ACE would intervene in the matter at a later stage after the disposal of the complaint by the revenue office.
It may be mentioned that the Lahore High Court (LHC) in June 2012 while deciding the petitions of the affectees of Bahria Town and the Revenue Cooperative Housing Society (RECHS) merger had directed the ACE to take action against those corrupt revenue officials who had allegedly ‘facilitated’ the deal against the interest of hundreds of RECHS members.
However, so far not a single revenue official has been booked by the ACE.
According to sources, the reason why the ACE shows leniency for revenue officials is the services of patwaris, tehsildars and additional collectors for the local politicians.
The sources said the revenue staff allegedly received kickbacks from the land mafia for protecting their interest and spent some of the ill-gotten money on the campaigns of the politicians.
According to the sources in the revenue office, despite claims made by the Pakistan Muslim League-Nawaz (PML-N) government, patwaris and tehsildars still allegedly took bribe from the land owners for issuing ‘fard’ (ownership document), transfer of land and registration of immovable property from one person to another.
They said the officials allegedly took thousands of rupees from the citizens for performing their official jobs for which they were already being paid salaries through the taxpayers’ money.
Those who refused to pay them the bribe are forced to wait for years to get a document which could be available in a single day.
Take the case of Dr Abdul Razzaq, 80, who has been visiting the offices of patwaris and tehsildars for several years to get his land transferred in his name which he bought in 1973.
Mr Razzaq, a resident of Rawalpindi, said after he refused to pay bribe to the tout of a tehsildar, the revenue staff - patwari, gardawar - not only refused to transfer his land but also raised a new objection on his application whenever he visited them.
“It is very difficult to meet these officials as because of my old age I cannot visit them on a daily basis and when I could manage to reach their offices they are not available,” he complained.
Ghulam Sarwar Khan, Member National Assembly (MNA) of the Pakistan Tehreek-e-Insaf (PTI), when contacted, alleged that the PML-N politicians used revenue officials to meet the expenses of their election campaigns and other political activities.
He also alleged that the blue-eyed tehsildars and patwaris collected bribe from those who visited their offices for the routine work. After keeping their share, they forward the rest to the minister, he alleged.
“The lifestyle of certain politicians of the PML-N does not commensurate with their known sources of income and it appears that they also get their share from the ‘revenue’ of the tehsildars and patwaris,” he added.
However, Mushahidullah Khan of the PML-N told Dawn that the rivals of his party always levelled allegations that the patwaris were behind the successful rallies and public gatherings of the party, which was not correct.
He said the PML-N bore the cost of arrangements for the rallies and other political activities from the funds it collected from the party members.
When he was reminded that the details of the expenses the PML-N submitted to the Election Commission of Pakistan did not commensurate with the huge amount its politicians spent on their publicity campaigns, he said the district organisers in different cities were responsible for the arrangements of such activities and they raised the finances on their own.
Additional Commissioner Rawalpindi Habibullah refused to comment on the matter. However, Assistant Commissioner Revenue Tasnim Ali said action was being taken against the corrupt officials.
He denied any political interference in the affairs of the revenue officials and said the revenue officials were working without the influence of outsiders.
See: http://www.dawn.com/news/1111324/revenue-officials-accused-of-conniving-with-land-mafia
28/05/2014
Tuesday, 27 May 2014 19:45
Posted by Imaduddin
ISLAMABAD: The Supreme Court on Tuesday allowed the Defence Housing Authority (DHA) to withdraw Rs 420 million from the seized account for payment of employees' salaries and utility bills.
The three-member bench of apex court headed by Justice Saqib Nisar resumed hearing of the case regarding multibillion corruption scam in Employees Old-Age Benefit Institute (EOBI).
The court directed the DHA to submit a bank guarantee for permanent revival of Rs 6 billion seized account.
During the course of proceedings, Chairman EOBI informed the court that Board of Trustees has decided to return the purchased properties to their original owners after receiving amount with interest.
Justice Nisar termed it a good omen and directed the counsels of different parties to discuss the matter with their clients. He said that if any party wants to get back property the court would facilitate them and the court would also issue directives to withdraw the cases registered against them.
He remarked that the case registered against EOBI employees would decide the concerned courts.
He observed that if concerned parties failed to reach any consensus then the court would issue proper directives in this regard and the court could also form a judicial commission to investigate the corruption cases.
The counsel for DHA informed the court that DHA was ready to get back the properties because its reputation will be badly affected in the market.
Chairman EOBI informed the court that the institute will also receive 9.5 per cent interest with expenditure after returning purchased properties.
Irfan Qadir counsel for DHA informed the court that DHA sold Rs 22 billion property and it did not agree the EOBI decision to get back the properties to their original owners.
Irfan Qadir pleaded the court to reopen the seized DHA accounts so that the authority can pay utility bills and salaries of the employees.
The court accepted the DHA counsel plea and ordered to release amounts and adjourned hearing for two weeks.
See: http://www.brecorder.com/pakistan/politics-a-policy/174692-sc-allowed-dha-to-withdraw-rs-420-million-for-employees-salaries.html
12/04/2014
ISLAMABAD: A lawyer representing the Defence Housing Authority (DHA) in the EOBI scandal said on Wednesday he hoped the Supreme Court would not assume jurisdiction on a suo motu in this case.
“It is a matter of universal testimony now that exercise of suo motu jurisdiction has been overstretched by some benches of this court ever since the restoration of former chief justice Iftikhar Muhammad Chaudhry,” Advocate Irfan Qadir said in a statement submitted to an apex court bench headed by Justice Anwar Zaheer Jamali.
The bench had taken suo motu notice of the multi-billion-rupee corruption scandal in the Employees Old-Age Benefits Institute (EOBI) relating to investment in private sector projects without approval by the Board of Trustees (BoT).
An investigation by the Federal Investigation Agency (FIA) suggested that the EOBI had made investment in two different DHA schemes. The first deal, worth Rs15.473 billion and signed on Jan 19, 2012, involved the purchase of 321 kanals of land in the DHA Islamabad. In the second deal signed on March 15 last year, the EOBI paid Rs6.82bn for 23 commercial plots of eight marla each, 12 residential plots of two kanals each and 162 three-bedroom and 29 five-bedroom villas in Sector F, Phase-I DHA Rawalpindi.
On Wednesday, the court asked the EOBI to reconsider in its BoT meeting scheduled for April 18 whether it intended to retain or surrender the properties after getting back payments it had made through investment in what was perceived to be a dubious real estate business with a number of housing societies.
Irfan Qadir argued that the BoT could not at this stage wriggle out of solemn commitments made earlier by the EOBI or in any way unilaterally recall the contract in question. Similarly, the Supreme Court has no jurisdiction to enter into lengthy investigations on questions of fact or law through tedious hair-splitting while exercising its jurisdiction under Article 184(3) and more so when the deal is even otherwise fair, transparent, legal and benefiting to the EOBI.
Mr Qadir, who served as attorney general when Iftikhar Chaudhry was the chief justice, cited the April 3 hearing in a different case which was later referred to Chief Justice Tassaduq Hussain Jillani with a request to constitute a larger bench and decide the scope and extent of exercise of suo motu jurisdiction by the Supreme Court.
Even at the last hearing a judge of this bench had observed in a preceding case that “time has come to clear this mess”, the counsel said, adding that he hoped the court, while taking into account this important consideration, would not be misled in assuming jurisdiction in the EOBI case in which it had none under Article 175(2) of the Constitution. Justice Anwar Jamali agreed with the counsel that suo motu jurisdiction should be used sparingly and that parameters needed to be determined for the exercise of this jurisdiction by the court.
At a reference held in honour of former chief justice Iftikhar Chaudhry on Dec 11 last year, the incumbent chief justice had also stressed the need for reconsidering and determining the limits and contours of jurisdiction under Article 184(3) of the Constitution with a view to discouraging frivolous petitions and preventing the misuse of jurisdiction by vested interests.
Irfan Qadir contended that no illegality in the deal between the DHA and the EOBI was committed. Prices and details of the properties were mutually agreed upon after due deliberation in an open and transparent arrangement which eventually culminated into a contract. It was duly entered and validly being executed for a lawful consideration in accordance with the provisions of the Contract Act 1872, Mr Qadir said in his statement.
As a whole the valuation of the properties on which these were sold to the EOBI by the DHA has been held to be correct and proper by Nespak which in its report verified an increase of approximately Rs1.9bn (12 per cent) in the price of property along Expressway and of Rs368 million (6pc) in property in Sector-F during the period.
See: http://www.dawn.com/news/1098881/suo-motu-jurisdiction-overstretched-dha-lawyer-tells-sc-in-eobi-case
17/03/2014
RAWALPINDI: Unwary residents of posh localities of the garrison city who fell for ‘quick gas connection’ offers find themselves in trouble after the Sui Northern Gas Pipelines (SNGPL) has come up with its own offer.
Dawn has learnt that scores of residents of Defence Housing Authority (DHA), Bahria Town and similar up-class localities who fell victim to conmen’s offers, have been charged by the SNGPL with securing illegal connections and installing stolen gas meters. Some of them have been heavily fined.
Theft of gas meters has been on the rise in Rawalpindi in recent months.
SNGPL sources said that during the last six months 730 domestic consumers reported to the company that their gas meters had been stolen.
It were, however, inquiries from some consumers in posh colonies why they were not getting bills that revealed to the SNGPL that conmen were using the stolen gas meters to provide quick connection to the moneyed needy living in DHA Phases I and II, Bahria Town and other localities for fees ranging from Rs60,000 to Rs100,000.
“Some DHA employee would have been part of the gang offering swift illegal connections,” suspected a SNGPL official.
After disconnecting gas supply, and imposing fines of up to Rs140,000 on the owners of some 70 houses fitted with stolen meters, the SNGPL passed on the case to the Federal Investigation Agency (FIA), which booked them for having stolen meters and using unaccounted for gas (UFG).
But soon the FIA realised that the SNGPL had handed it a hot potato, for many of the owners turned out to be serving or retired air commodores, brigadiers and colonels. It was understandable to them that desperate needs lead to desperate actions.
In order to avoid legal actions, the military officers submitted written statements to the SNGPL authorities, pleaded not guilty.
For instance, Air Commodore Siddique Akbar informed the SNGPL that he paid Rs60,000 for a quick connection but was not aware that the gas meter being installed at his house in DHA Phase II was stolen.
Brigadier Ashfaq, another resident of DHA, narrated the same story, but the gas company fined him Rs140,000 on account of UFG.
Raja Mansoor Nasir told Dawn that soon after he completed constructing his house in DHA Phase II, a shady character offered him a quick gas connection for Rs90,000.
“I ignored his offer because I had direct contacts with some SNGPL officials,” he said, wondering how the conman came to know he was seeking gas connection.
“There must be someone in the DHA administration and SNGPL who leaked the information regarding connection seekers to conmen,” he said.
Javed Iqbal Khan, general manager, SNGPL, Rawalpindi, claimed to Dawn that out-of-turn connections stopped after SNGPL cracked down on the corrupt elements in the company and the mafia active in the sector.
Though admitting that the mafia had moved its operations to other localities in the city, the SNGPL official assured that “stolen meters cannot remain hidden as the monthly meter reading process would reveal them one day”.
His advice to gas connection seekers was “avoid embarrassment and legal action by waiting for your turn rather than pay big money to shady middlemen”.
See: http://www.dawn.com/news/1093624/quick-gas-connections-put-house-owners-in-trouble
13/03/2014
Malik Riaz and Bahria Town had disappeared from the news for a while, but are now back:
ISLAMABAD: After five years, the Rawalpindi district administration is again out demarcating the vast tracts of forest land on the outskirts of the garrison city that a big real estate developer acquired, allegedly unlawfully, 14 years ago.
Dawn has learnt that the district administration has reassigned the task to the same three tehsildars (land revenue officers) who were given the assignment the first time in 2009 when the Supreme Court took suo motu notice of the allegations, and the litigations they gave rise to, and ordered the demarcation.
An annoyed Supreme Court summoned the District Coordination Officer of Rawalpindi recently to explain the inordinate delay.
That pushed the administration once again to go through the motions of demarcating the 684 acres the Bahria Town allegedly encroached upon in Rakh Takht Pari and another 732.5 acres in Loi Bher forested areas in 2005.
Since then, the issue of legal ownership of the land has been hanging fire in courts and become too complicated as part of the land the Bahria Town subsequently sold to the Defence Housing Authority (DHA) and to individuals.
Buyers, which included retired military officers, have raised commercial and residential buildings worth billions of rupees on the land they say they purchased lawfully, complicating a legal settlement.
Sixty-one civil and criminal cases are pending in various courts against the property tycoon Malik Riaz alone.
In the forestland case, his Bahria Town enterprise obtained a restraining order from a civil court against the demarcation process as Rawalpindi Revenue Board authorities allegedly dithered action.
There exists a feeling in the legal and political circles that the PML-N government in Punjab pursued the cases against Malik Riaz seriously when PPP coalition was ruling the country. But its vigour waned after the PML-N swept the 2013 general elections and came to power at the Centre too.
Punjab government’s additional prosecutor general Tariq Mustafa, however, insists the delay in prosecuting the cases was not deliberate. “It is the discretion of the courts to take them (the cases) up at regular intervals,” he told Dawn.
Though the Rawalpindi bench of the Lahore High Court (LHC) had declared illegal the merger of the Revenue Employees Cooperative Housing Society (RECHS) with the Bahria Town in June 2012, the judgment remains unimplemented due to legal complexities and the affected society members without relief.
Bahria Town lawyers have denied land-grabbing charges in courts, saying their client conformed to the law in developing the land and offered compensation if the interest of any RECHS members was hurt.
But in 2012, additional advocate general of the Punjab government Razzaq Mirza rejected the offer, saying forests are protected areas under the law and their land could not be sold or leased for housing purposes.
A revenue officer engaged in demarcation, speaking on the condition of anonymity, however, warned that demarcation of the forestland “at this stage when the Bahria Town has already sold the disputed land” would create further legal complexities.
“No one, neither the government nor the judiciary, had warned potential buyers of any encroachment. They purchased the land in a lawful manner and have raised buildings on them since,” he said.
A senior manager of the Bahria Town, Colonel (retired) Khalil, claimed to Dawn that the land in question was “undisputed and belongs to the Bahria Town
“Demarcating the land by government officials is tantamount to contempt of court,” he added, recalling the restraining order issued by a civil judge of Rawalpindi last year.
See: http://www.dawn.com/news/1092814/supreme-court-stirs-dormant-pindi-admin-into-action
03/01/2014
RAWALPINDI: After getting a no-objection certificate (noc) from the City District Government Rawalpindi (CDGR), the Small Dam Organisation (SDO) has sought Rs48 million from the Punjab government for the feasibility study of the proposed Daducha Dam on Soan River.
In 2001, the Rawalpindi Development Authority (RDA) and the SDO had proposed the construction of the dam but the project could not be initiated.
In 2006, the DHA purchased the 18,000 kanals of land on which the dam was to be built.
Later, the DHA established a housing scheme on the land in collaboration with Bahria Town. In 2011, the Supreme Court directed the provincial government to start work on the dam at its original site.
Following the directive, the Punjab government asked the city government Rawalpindi to cancel the sale deeds of the 18,000 kanals. In July 2012, the district administration froze all development activities in the area.
However, the DHA authorities contacted the Punjab government to construct the dam on the upstream instead of the proposed site. The plea was, however, turned down.
In December, the planning commission asked the SDO to start the feasibility study of the dam with the direction to the city government to issue the NOC for the acquisition of the land.
“The CDGR sought Rs2 billion from the Punjab government for the purchase of the land. However, the government allocated Rs48 million and asked the CDGR to complete the feasibility and then purchase the land,” an official in the local revenue department told Dawn.
He said after the feasibility study, work on the dam would be started next year.
When contacted, SDO superintending engineer Mirza Zafar Hussain told Dawn that the provincial government had allocated Rs48 million for the feasibility study and SDO had requested the government to release the funds. “Soon after receiving the funds, we would start the work,” he said.
The Daducha Dam project has been planned to provide 25 million gallon daily (MGD) water to the city and cantonment areas for the next 50 years.
At present, Rawalpindi gets 16 MGD water from the Rawal and Khanpur dams and 22 MGD from over 300 tubewells against its total need of 50 MGD.
The water supply from the Khanpur Dam is not enough to fulfil the requirements of the cantonment areas and city’s nine union councils.
Sources said a water crisis was feared to hit the city in the coming days if small dams were not built in three or four years. They said the city’s water demand would shoot up to 79 MGD in the next 20 years while the underground water level was receding rapidly.
See: http://www.dawn.com/news/1078035/rs48m-sought-for-feasibility-study-of-daducha-dam
29/12/2013
DHA Islamabad: FBR digs out non-NTN holder investors
The Directorate General of Intelligence and Investigation Inland Revenue, Federal Board of Revenue, has identified all investors, including both buyers and sellers, who have invested in DHA Islamabad, but doing business without obtaining any tax identifier - National Tax Number (NTN). Sources told Business Recorder here on Saturday that the directorate has completed a detailed exercise for taxing investment in the real estate sector-DHA Islamabad.
The agency has provided the details of all such un-documented buyers and sellers to the Commissioner Broadening the Tax-Base FBR House Islamabad for documentation of buyers and sellers in the real estate sector. The department would ensure that the investors must file their wealth statements disclosing details of their investment for documentation. According to the details, the Directorate General I&I-IR has initiated various projects aimed at digging out large scale tax evasion and non-compliance in the different sectors of the economy. One such project is the collection of information about investments in the real estate sector especially in prominent and expensive housing/commercial schemes.
As part of this exercise, information was collected about the investors (both sellers and purchasers) in the DHA Islamabad. The acquired information was cross-matched with the FBR data and cases of the investors not on the tax roll were filtered. List of such investors is available in the soft format for appropriate action by the Commissioner BTB FBR. Following aspects may be given due consideration to ensure proper incidence of tax in these cases: Firstly, the cases should be immediately brought on tax roll by initiating proceedings'' under the relevant provisions of law.
Sources said that the sale/purchase value of the plots mentioned in the acquired information seems to be on the lower side and efforts are needed to ascertain the actual sales/purchase value. Enforcing wealth statements and obtaining bank statements could prove beneficial for achieving this end. This could also lay bare other investments/incomes of the investors in the DHA. The information contains particulars of both the sellers and purchasers of the plots and action is required to be initiated against both, sources added.
See: http://www.brecorder.com/taxation/181/1268710/
04/10/2013
ISLAMABAD: Supreme Court Wednesday declared the agreement between the Defence Housing Authority (DHA) and the Evacuee Trust Property Board (ETPB) null and void, Geo News reported.
In a suo motu case relating to the ETPB land of billions of rupees selling for peanuts, the Supreme Court three-member bench while declaring the agreement void also ordered for initiating criminal proceedings against ETPB Chairman, Asif Hashmi and others, adding that FIA should soon complete the investigation.
It may be recalled that the Chief Justice of Pakistan Iftikhar Muhammad Chaudhry had taken the suo motu notice of the sale of ETPB land worth billions of rupees for peanuts.
During the hearing, CJ on one occasion had observed that the ETPB made the illegal agreement by closing their eyes and added that in accordance with the constitution and law the Trust land can neither be sold nor can be exchanged with other land.
23/08/2013
ISLAMABAD, Sept 22: The tunnel project is an assault on the Margallah Hills National Park (MHNP) and an unpopular decision made to facilitate land mafia. The decision to link Haripur to Islamabad is causing concern among environmentalists all over the country.
This was stated by former bureaucrat and president of the Margallah Hills Society (MHS), Roedad Khan, while speaking to the media after attending a meeting of the civil society.
The meeting, which was held at his residence in F-7/3 on Sunday, was attended by civil society activists Dr Dushka Syed, Wajahat Lateef, Aitzazuddin Ahmed, Ameer Usman and Afzal Qahot.
Roedad Khan said the MHNP was a gift of nature and an irreplaceable asset, but some elements were trying to destroy the beauty of the federal capital.
While talking to Dawn, Mr Khan said, “The tunnel project was first proposed by Gen (retired) Musharraf, a military dictator, in collusion with property tycoon Malik Riaz, but the MHS opposed it,” he said.
He added that Malik Riaz, during a live debate on a private channel, had stated that he had given a two-hour briefing to Mr Musharraf and a one-and-half hour briefing to the then premier Shaukat Aziz regarding the project.
According to Mr Khan, Malik Riaz had clearly said that he had the approval of Mr Musharraf and did not need the permission of the environmental protection agency.
“At that time, it was said that a new Islamabad will be constructed behind Margallah and now the government is claiming that the tunnel will open an economic corridor. I assume it is the same project because Malik Riaz never gives up. However, other land mafias may also be involved,” he said.
Roedad Khan said the Capital Development Authority (CDA) had informed the Supreme Court on March 29, 2012, that the project had been deferred and was not being considered anymore.
In response, the court said no further action was called for and the civil society thought the project was laid to rest permanently.
“But on August 23, 2013, at a meeting presided over by Prime Minister Nawaz Sharif, it was decided that the project will be initiated to link Islamabad with Haripur and provide a shorter route to commuters of Gilgit Baltistan, Mansehra and Abbottabad,” he said.
Roedad Khan, terming the project illegal, said: “It seems the tunnel project has not been considered by the planning commission or sanctioned by the Executive Committee of National Economic Council. Furthermore, it has not been approved by any higher authority including the Environment Division and the Environment Protection Agency.”
He said if the project was not checked and construction began straightaway, the Margallah Hills and Islamabad would be damaged beyond repair.
The MHS president further said that he had already sought the intervention of the Supreme Court of Pakistan on the issue.
He also thanked Senator Mushahid Hussain Syed for submitting a motion in the Senate and appealed to all citizens of Islamabad, environmentalists and media to oppose the project.
“We have done this before. We can do it again to save the Margallah Hills,” Roedad Khan said.
Ironically, Mr Nawaz Sharif had himself issued directives to conserve the national park when he was prime minister in 1991.
According to documents available with Dawn, Mr Sharif said: “I have received disturbing reports that the Margallah Hills National Park, established by the federal government on 18th April 1980 under Islamabad Wild Life Ordinance, has been exposed to activities which are prejudicial to its preservation as a national park area and are environmentally hazardous for Islamabad.”
Mr Nawaz Sharif had then instructed CDA to eliminate all such activities as were damaging the environment of the federal capital.
http://dawn.com/news/1044818/islamabad-tunnel-project-is-to-facilitate-land-mafia
04/09/2013
Non-compliance of load shedding schedule
LESCO suspends power to Bahria Town
LAHORE: The Lahore Electric Supply Company (LESCO) has suspended the electricity supply of Bahria Town for not complying with the orders of the authority.
It is for the first time that the residents of Bahria Town have experienced a power shutdown for four consecutive hours. The details available to The Media Times reveal that the Bahria Town has set up a grid station on the premises of the housing scheme on its own expenses and the staff deputed there is paid by the Bahria Town administration, not by the power supply company.
The Bahria Town purchases electricity from LESCO in bulk and distributes it to its residents from the feeder it had established in the housing society. According to the agreement between LESCO and Bahria Town, the latter is bound to comply with the schedule of load shedding announced by the former. LESCO had directed Bahria Town to observe six hours’ load shedding a day for its residents and give a schedule to the authority but Bahria administration neither gave the schedule of load shedding nor implemented the authority’s directions.
LESCO wrote several letters to Bahria Town administration in this regard but to no avail. Despite repeated notices, the Bahria Town administration remained unmoved and did not act upon the advice. It did not even bother to reply any of the letters. Earlier, it was not possible to determine who was observing the load shedding schedule and who was violating it, but now LESCO has installed its meters which provide details of every minute that a feeder is shut down or is supplying power.
These meters detected that Bahria Town feeder was supplying electricity uninterrupted and the load shedding schedule was not being implemented. “LESCO wrote several letters to Bahria Town for ensuring six-hour load shedding in a day for its residents but they did not comply with the orders. They have their own staff on the grid station who accepts orders only from the Bahria administration. We sent them many notices but they did not pay heed to those and we were left with no option but to cut their supply,” Arshad Rafique, LESCO chief told Media Times.
He also clarified that the Bahria Town gives impression of having its own power house but the fact was that it had a grid station built by its own funding and did not have any power generation capacity. The housing society buys electricity from LESCO and distributes it from that grid station. He said that the impression that Bahria has a power generating unit was not correct.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C09%5C03%5Cstory_3-9-2013_pg7_15
02/09/2013
ISLAMABAD, Aug 31: While hearing a petition against alleged land grabbing, an additional district and sessions judge of Islamabad on Saturday ordered the Bara Kahu police to register a case against property tycoon Malik Riaz, his son Ali Riaz and others.
Judge Zeba Chaudhry passed these directions while hearing a petition filed by Mohammad Moqarab Abbasi who sought the registration of an FIR against the accused. He alleged that Mr Riaz and others had grabbed 30 kanals of land in Phulgran village in the suburbs of Islamabad.
The petitioner maintained that a private firm, Green Tree, had purchased 118 kanal of his land in Phulgran which was later sold to Bahria Town.
However, he added that Bahria Town had also encroached upon an additional 30 kanals in the same area which belonged to the petitioner.
He said the owners of Bahria Town and their accomplices were ‘known land grabbers’ and had illegally occupied the private land belonging to local residents in addition to forest land to establish their private housing schemes.
In addition, the petitioner said the Islamabad police was under the land grabbers’ influence.
Despite repeated complaints, he said the police had not registered an FIR against the land grabbers including Malik Riaz, his son Ali Riaz and Captain (retired) Shahid, the site incharge of Bahria Town.
According to the petition, the accused had also destroyed the natural beauty of the area and were involved in cutting down numerous trees. However, no government department dared to stop them from damaging the environment.
Responding to the petition, the local police, in a reply submitted to the court, admitted that petitioner Abbasi had filed complaints with them against Malik Riaz and others.
However, they said the police were still investigating the matter.
On the other hand, Judge Chaudhry said the local police had failed to exercise their power because of which the court had to interfere.
“The petition is accepted and the SHO is directed to register an FIR against the accused to proceed in accordance with the law,” the judge added.
See: http://dawn.com/news/1039679/fir-ordered-against-malik-riaz
28/08/2013
FBR fails to recover Rs 119 billion tax from Malik Riaz: TI Pakistan
The Federal Board of Revenue (FBR) has failed to recover Rs 119 billion tax from Malik Riaz on his publicly declared assets of Rs 225 billion. Transparency International Pakistan Adviser, Syed Adil Gilani in a letter sent to Federal Board of Revenue, Tariq Bajwa on August 27 has regretted that even after seven reminders sent to the Chairman FBR, TI-Pakistan has not been informed about the tax collected on Malik Riaz's publicly declared assets of Rs 225 billion.
TI-Pakistan has referred to its letter dated September 4, 2010 on the news published on September 1, 2010, with following request; " Transparency International Pakistan request the Chairman FBR to provide information to Transparency International Pakistan on the total value of assets of Malik Riaz as assessed by FBR in accordance with Income Tax Ordinance 2001, including the Income tax and Capital Value Tax paid in 2009 on assets worth over Rs 225 Billion (US 3 Billion). In case these assets have not been declared to the FBR in 2009-2010 returns of Malik Riaz, Transparency International Pakistan request FBR to take action according to the law. TI Pakistan is working for FBR to become a "Zero Tolerance against Corruption" organisation."
Referring to TI-Pakistan letters dated June 12, 2012, December 8, 2012, December 29, 2012 and February 13, 2013 Adil Gilani has urged the FBR to take immediate measures in accordance with the rules and regulations to recover Rs 119 billion from Malik Riaz. He recalled that on June 18, 2012, TI Pakistan had reported to the FBR a similar information for recovery of due taxes ( if not already recovered) on an apartment worth US $1.2 million owned by Najam Sethi in New York. The FBR had very promptly issued a notice to Najam Sethi on August 31, 2012.
According to the requirement of Law, on April 24, 2103 FBR issued orders to recover Rs 10.26 million from Najam Sethi. Contrary to this case, the FBR has not taken similar action for the recovery of Rs 119 billion from Malik Riaz, which is favouritism by the FBR to a tax evader
On January 3, 2013, the FBR informed TI Pakistan vide letter No 6(12) S(IR-Operations)/2012-15762-R, that the case has been sent to concerned field office for taking cognizance of the tax evasion in the subject case, and again on March 21, 2013, FBR informed TI Pakistan vide letter No 6(12) S(IR-Operations)/2012 that progress report on the tax recovery from Malik Riaz Hussain, from Chief Commissioners RTO Islamabad and Lahore, and Chief Commissioners LTU Islamabad and Lahore has been requested.
Adil Gilani requested Chairman FBR to provide information to TI-Pakistan whether the tax recovery of Rs 119 billion has already been made from Malik Riaz Hussain or not. In case the recovery is still outstanding, the Chairman has been to make the recovery possible.
He has highlighted that any action to provide illegal benefit in any taxation matter amounts to corrupting and corrupt practice under Section 9 (vi) of NAB Ordinance 1999, which reads as follows:
(vi)) (if he misuses his authority so as to gain any benefit or favour for himself or any other person, or [renders or attempts to render) [or wilfully fails to exercise his authority to prevent the grant, or rendition of any undue benefit or favour which he could have prevented by exercising his authority]; (vii) if he has issued any directive, policy, or any SRO (Statutory Regulatory Order) or any other order which grants or (attempts to grant) any (undue) concession or benefit in any taxation matter or law or otherwise so as to benefit himself or any relative or associate or a benamidar (or any other person)"
He has further requested that action may also be taken against the concerned officers under NAO 1999 who deliberately did not act against the tax evader M/s Riaz-Arslan-Khalil under the Section 192 A of the Income Tax Ordinance 2001, and caused loss to the exchequer by not recovering the amount even after TI-Pakistan had in right time in 2010 informed FBR in September 2010 about this major tax evasion by Malik Riaz Hussain.
"TI-Pakistan is striving to have transparency in procedures and Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in country," he said.
See: http://www.brecorder.com/taxation/181:pakistan/1225779:fbr-fails-to-recover-rs-119-billion-tax-from-malik-riaz-ti-pakistan/
18/08/2013
Conspiracy underway to divide historic Sadiq Public School
LAHORE: The military establishment is manoeuvring the administration of legendary Sadiq Public School, Bahawalpur, to get 20 to 25 acres of school land in order to construct a road in the middle of the school.
The road is being constructed to provide direct access to the main road leading to the Defence Housing Authority (DHA) situated behind the school.
If the school administration allows construction of the road, the price of plots in DHA are likely to double – the key reason some influential military officers and some administrative officials of the school want to compromise and damage the school, sources said.
Bahawalpur Corps Commander Lt Gen Zubair Mahmood Hayat, the secretary of the school’s executive committee/board of governors, is allegedly influencing members of the board of governors to allow construction of the road to facilitate DHA, sources revealed.
All students, teachers and alumni of the school are against the division of the historic and traditional school.
Sources in the school management said that during a recent meeting of the BoG, Bahawalpur Commissioner Caption (r) Asadullah Khan took a firm stance against the construction of road. He said the school’s values and traditions, and the security of boarders would be at stake if the board allowed the division.
Sources said that most members of the BoG and alumni were also against the manoeuvring on part of the military establishment; however, some of them were being influenced or controlled, while others were being allured with bribe of plots in the DHA.
The DHA administration has also reportedly offered plots to members of the school administration in exchange for allowing the construction of the road.
The 2,000 students of the school, especially the 520 boarders, including 100 girls, consider this road a serious threat to their security.
The alumni of Sadiq Public School have also demanded army chief Gen Ashfaq Parvez Kayani, Punjab Chief Minister Shahbaz Sharif and Education Minister Rana Mashood Ahmad Khan to stop military manoeuvring.
The school is situated on 451 acres. The students and alumni have warned the government that they would come out on roads if the DHA administration was allowed to divide the school and damage their traditions.
The school’s board of governors consists of ex-officio members: General Officer in Command (GOC) Lt Gen Zubair Mahmood Hayat, Bahawalpur Commissioner Caption (r) Asadullah Khan, Sadiq Public School acting principal Prof Abdullah Shah (the seat of principal is currently vacant) and the Punjab schools education secretary.
Other members of the BoG are: Ch Muhammad Zaka Ashraf, Makhdoom Shahabuddin, Dewan Ashiq Hussain Bokhari, Farhat Aziz Khan Mazari, Lt Gen (r) Waseem Ahmad Ashraf, Muhammad Ali Laleka, Major (r) Tariq Mahmood Mazari, Sahibzada Muhammad Osman Abbasi, Riaz Hussain Pirzada, Sardar Muhammad Ayub Ghallu, Raheel Ahmad Siddiqui, Muhammad Nawazish Ali Pirzada and Saeed Ahmad Khan Manais.
Lt Gen Zubair Mahmood was not available for his comments despite several attempts to reach him. His staff officer refused to comment, saying that ISPR’s Major Waqas was the competent authority to speak on this issue.
When contacted, Major Waqas did not deny the information regarding the SPS land issue, and sought some time for his official comment. However, after two days, without denying the information, he refused to give any official point of view on the issue.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C08%5C18%5Cstory_18-8-2013_pg7_12
Govt admits DHA land scam in Punjab Assembly debate
By Kashif Hussain
LAHORE: A land scam worth billions of rupees in Defence Housing Authority (DHA) Lahore is admitted by the provincial government in the Punjab Assembly and the speaker announced to refer the case to Anti-Corruption Department for thorough inquiry and legal action.
The Punjab government has admitted this scam after the issue was highlighted by a treasury-bench legislator Sheikh Allauddin through an adjournment motion a week ago.
In reply to this motion on Thursday, the Law Minister Rana Sanaullah admitted government’s irregularities in the matter.
He said apparently it was confirmed by the concerned authorities of the department in their reply to Assembly that some irregularities had been done in the transfer of 350 kanal piece of land owned by the Evacuee Trust Property Board. He said he was not able to read this answer as it was lengthy so the mover (Allauddin) should read it personally and provided the written answer to him.
Sanaullah also recommended the House that because of irregularities which have been apparently disclosed, an inquiry should be held through the Revenue Department.
Meanwhile, the mover stressed the government to constitute a special committee of the House to probe the matter properly.
Allaudin also said it was not only a simple case but a fraud of billions of rupees belonging to national exchequer so proper inquiry should be held. The law minister also accepted the stance of the mover who also belongs to the treasury benches.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C08%5C16%5Cstory_16-8-2013_pg13_2
06/08/2013
Arrest warrants of ex-EOBI head issued
ISLAMABAD - The Federal Anti-Corruption Court resumed the hearing of EOBI case on Tuesday. The court once again issued non-bailable warrants of former EOBI chairman Zafar Gondal and Qasim Javed. The court directed the FIA to produce both the accused on August 16. The Supreme Court had taken a suo motu notice of the EOBI scandal over reports that the institution had caused a loss of Rs 40 billion to the national exchequer by investing huge amounts in private sector projects without approval of its board of trustees. -
See more at: http://www.pakistantoday.com.pk/2013/08/06/news/national/arrest-warrants-of-ex-eobi-head-issued/#sthash.mqSZw3bZ.dpuf
02/08/2013
ISLAMABAD, Aug 1: A bench of the Supreme Court Thursday brought joy to the worried employees of the Defence Housing Authority (DHA) establishment in the twin cities, by agreeing to unfreeze the DHA bank accounts to the extent that they get their salaries before Eid.
Chief Justice Iftikhar Mohammad Chaudhry, who heads the bench, accepted a DHA request for the same and wrote in the order that “keeping in view the hardship of the employees, as well as the widows and the orphans, we relax the condition (for the DHA) to withdraw Rs52.8 million.” The order also allowed the banks to accept deposits in the DHA accounts.
But the order bound the establishment of the DHA Islamabad-Rawalpindi to furnish to the court the balance amount left in the DHA bank accounts, after deducting the Rs52.8 million salary paycheck from its total deposits of Rs260 million on July 19.
That day the court had ordered all DHA accounts frozen until it deposited a staggering amount of Rs22.29 billion with the court.
In requesting a limited review of that freeze order, DHA counsel Irfan Qadir read out from the preamble of the DHA Act of 2013, concerning the purpose of establishment of DHA.
It stated that the purpose was “to carry out schemes and projects of land development inter alia for the welfare of the bereaved families of martyrs, war injured, disabled and other persons of the defence forces of Pakistan” by providing them financial security in recognition of their selfless service for the defence of the nation.
The bench had ordered the freeze during suo motu hearings in allegedly corrupt investments made by the EOBI (Employees Old Age Benefit Institute) in the DHA land and property projects, without seeking approval of its Board of Trustees.
A probe conducted by the Federal Investigation Agency (FIA) suggested that EOBI made investments in two different DHA schemes.
One deal, worth Rs15.473 billion and signed on January 19, 2012, involved the purchase of 321 kanals of lands in the DHA Islamabad.
A second deal signed on March 15 this year involved EOBI paying Rs6.82 billion for 23 commercial plots of eight marla each, 12 residential plots of two kanals each and 162 three-bedroom and 29 five-bedroom villas in Sector F, Phase-I DHA Rawalpindi.
FIA’s Additional Director General Law Muhammad Azam Khan submitted an evaluation report by the National Engineering Services Pakistan (Nespak) comparing the old and present market value of the DHA properties. Final report will be submitted later.
Implementing the EOBI-DHA deals also involved, in complicated ways, the Capital Development Authority, Bahria Town and the construction company Habib Rafiq.
In its Thursday’s proceedings, the bench also ordered unfreezing of the accounts of Messers Eden Housing Limited of Lahore after Advocate Tariq Mehmood told the court that the developers had deposited an amount of Rs976 million with the court registrar and a remaining amount of Rs900 million will be submitted before the next date of hearing which is August 21.
The counsel also prayed that the accounts of the society be released enabling it to make payments to its employees and construction labour before Eid.
Advocate Zulfikar Khalid Maluka, appearing as publico probono (in public interest), told the court that the properties sold to EOBI by DHA allegedly belonged to the DHA itself.
He explained that the total land handed over to the DHA by the CDA on June 22, 2007 was 1,937 kanals and nine marlas. The area measuring 321 kanals, which is the subject of EOBI scam, is part of that land which was never acquired by DHA.
Land measuring 1,937 kanals and nine marlas was allegedly exchanged between CDA and DHA on the condition that the housing authority would develop 482 plots of one kanal each.
No one knows for certain, Mr Maluka said, whether CDA got the developed plots from the DHA or not.
But DHA and its partners certainly became rich after selling 321 kanals to EOBI out of 1,937 kanals and nine marlas.
Mr Maluka insisted that the entire transaction between the CDA and the DHA was in sheer violation of CDA land and planning rules.
31/07/2013
ISLAMABAD: Munir Qureshi, chairman of the Employees’ Old Age Benefit Institution (EOBI), informed the Supreme Court Wednesday that corrupt elements in the institution were under investigation and that the auditor general had been instructed to conduct a special audit.
A three-member of the apex court, headed by Chief Justice Iftikhar Muhammad Chaudhry, heard the case pertaining to corruption in the EOBI.
The apex court had taken a suo motu notice of the EOBI scam over reports that the institution had caused a loss of Rs 40 billion to the national exchequer by investing huge amounts in private sector projects without approval of its board of trustees (BoT).
During the hearing, Qureshi informed the court that former chairman of EOBI, Zafar Iqbal Gondal, was inducted in the institution on deputation basis just like him.
He added that EOBI was receiving contributions from 3.4 million registered workers, whereas the institution was paying out Rs 1 billion monthly as pension for 400, 000 workers.
Qureshi said that former chairman had even suspended the pre-audit system, which was now restored.
Defence Housing Authority lawyer Irfan Qadir said salaries of its workers could not be prepared due to the freezing of the DHA bank accounts.
Chief Justice Iftikhar asked Qadir as to how much money he had deposited in the court, upon which he replied that 2.6 billion rupees had been submitted so far. He added that Eid was approaching soon and the workers’ salaries would have to be prepared.
The court asked Qadir to submit in writing the request for payment of workers’ salaries and adjourned the hearing till tomorrow.
See: http://dawn.com/news/1033177/eobi-scam-case-pre-audit-system-restored-says-chairman
26/07/2013
ISLAMABAD, July 25: The Capital Development Authority (CDA) has asked the Defence Housing Authority (DHA) to provide the files of only two of the remaining 47 plots to settle a five-year-old dispute.
The CDA had provided DHA 2,412 kanals in exchange for 729 developed plots, which the civic authority has still not received.
Earlier, the CDA had demanded the physical inspection and the layout plans of the 729 plots, and CDA Member Estate Shaista Sohail had conveyed the authority’s concerns to DHA via a letter dated May 16.
The letter stated that the files for 682 of the total 729 plots had been handed over to CDA, and asked for the files of the remaining 47 plots.
Similarly, Shaista Sohail, during a meeting with Col (retired) Ijaz Hussain (Secretary DHA) on July 3, warned him that the agreement would be cancelled if the plots were not handed over.
However, on July 23, the CDA acknowledged receiving the files of 45 of the 47 plots and requested the remaining two be handed over.
An official of the civic body told Dawn that under its land disposal regulations, the CDA could not provide land to the DHA as the land sharing formula, which was introduced for acquiring land from villagers, was not applicable.
He said the agreement could not be challenged in court, so the civic authority had changed its earlier tough stance by comprising on the files and giving up its demands for layout plans Moreover, he said senior officers of CDA had received plots in DHA and Bahria Town for brokering the deal, and now wanted an amicable solution to the matter.
CDA director general administration Naeem Rauf, the military spokesman and DHA officials did not comment on the matter despite repeated attempts.
ISLAMABAD, July 25: The capital police have decided to take strict action against the display of arms by land mafia groups operating in Islamabad and would prepare a list of police officers who were on the mafia’s pay role.
A senior police officer told Dawn on Thursday that the police had decided to take strict action against the private force of land mafias who displayed arms in the city, especially in the rural areas.
“The private guards of land grabbers, armed with modern sophisticated weapons, threaten local villagers and obtain their lands forcefully,” the officer said.
Furthermore, he said the private guards also abducted villagers who showed resistance and at a number of occasions, they had ambushed villagers for the vested interests of their employers, leading to injuries and death.
However, a few officers were of the view that the decision against the display of arms was made only to please the minister and no action would be taken since the majority of policemen was on the mafia’s pay role.
“It is an open secret that SHOs of Shahzad Town, Kural, Loi Bher, Sihala and Banigala, the Sub-Divisional Police Officers (SDPOs) of Shahzad Town and Rural Banigala, and the Superintendent (SP) Rural had been appointed on the recommendations of powerful politicians and land grabbers,” said a police official.
Moreover, officers said the directions to take action against policemen who were on the mafia’s pay role would not be implemented because those responsible to ensure this were themselves appointed on the recommendation of land mafias.
“There is a chance that the police will use these directions to settle their score with their rivals within the force,” a police official said.
However, it seems action has already been taken as Inspector Mehboob Ahmed, Sub-Inspector Muzaffar and Assistant Sub-Inspector Daud Sabir were suspended on Thursday. Furthermore, Deputy Superintendent of Police Arshad Ali Khokhar was served notice and asked to appear before the senior officers.
The inspector, SI and ASI were suspended as they allegedly helped the land mafia occupy plots while working in the Koral police station a year ago. They also misused their powers and victimised villagers by registering fake cases to pressurise the residents into vacating their lands. However, they took no action against the land mafia.
The DSP was served a notice for his failure to keep an eye on his subordinates and their illegal activities.
24/07/2013
NEW bits of disturbing news from the real estate or housing sector are cause for a deeper look at the manner in which the city development authorities in Pakistan are performing their basic duties. Doubts have been cast at a deal between Islamabad’s CDA and DHA involving money from the EOBI, the fund for pensioners. There is an assertion the CDA ‘illegally’ transferred its own job of developing acquired land to the DHA. More questions arise and once again we see a formula where a city development authority ends up as a mere go-between, a commission agent: it obtains land from individual owners on the promise of paying them in the shape of developed plots; it then outsources development and gets a few developed plots of its own in the bargain. Through this ingenious partnership and using its official status a city development authority can earn without much effort and without even troubling itself with its original assignment ie development. The current status of development authorities in Pakistan does not conform to the nature of work that is expected of them.
In fact, the job of a city development authority is not to facilitate real estate business but to come up with projects to meet the growing housing and similar needs of the people. Any diversion will corrupt the system, and in many ways. One consequence of a city development authority not functioning properly is evident in the mushrooming of unapproved housing schemes. Take the case of the Lahore Development Authority which is now vowing to move against illegal schemes in its jurisdiction. There are at least 175 of these societies now accused of fleecing people by selling them often cheaper but always underdeveloped plots of land, said a recent report. Obviously such a huge pile-up could not have been possible had the LDA been more vigilant and more committed to its brief of ensuring standards in an area that is open to anyone who cares to have a look.
See: http://dawn.com/news/1031552/lay-of-the-land-development-authorities
ISLAMABAD: The Federal Investigation Agency (FIA) discovered that the Evacuee Trust Property Board (ETPB) had failed to safeguard its interest by investing in a real estate business of the Defence Housing Authority (DHA) in Lahore, and ended up with a staggering loss of Rs1.9 billion in the business.
The information came through an inquiry submitted by FIA Additional Director General (Legal) Muhammad Azam before the Supreme Court on Tuesday during proceedings of a case initiated on a complaint filed by Sardar Mastan Singh, President of the Pakistan Sikh Council, who is based in the Sikh holy place of Nankana Sahib.
Chief Justice Iftikhar Muhammad Chaudhry, who was heading a three-judge bench, reiterated that the court was under a constitutional obligation to safeguard interests of the minority community.
Surprisingly, all transactions and deals between the ETPB and the DHA were executed during the period when ETPB chairman Asif Hashmi was in charge. Asif Hashmi was appointed by the previous PPP government and is now believed to be staying in the UAE.
On Feb 6, the Supreme Court had imposed a ban on the DHA Lahore from altering Sikh properties in its possession in any way. Advocate Hafiz S. A. Rehman appeared on behalf of the ETPB, Advocate Shahram Sarwar represented the Sikh community while the DHA Lahore was represented by Advocate Asim Hafeez.
During proceedings of the case, the Supreme Court dropped hints it may order the FIA to register criminal cases and proceed against those responsible for causing a huge loss to the ETPB or order the DHA to return all lands it had acquired from the ETPB, though Asif Hashmi will still be facing consequences for the deal.
An inquiry report submitted by Additional Director General (Legal) Muhammad Azam before the Supreme Court suggested that originally the ETPB owned 1152 kanals and 15 marlas of land at the Village Lidher, 2862 kanals at Motasinghwala and 244 kanals and 15 marlas at Dera Chahal in Tehsil Lahore Cantt.
The total ETPB land situated at Mouza Lidhar and Motasinghwala and transferred to the DHA, Lahore, comes to 843 kanals and 15 marlas against 25 per cent exemption plots files. Twenty-five per cent exemption plots means that the ETBP will get 25 per cent of plots in exchange after the lands were developed for the housing society by the DHA.
But 244 kanala and 15 marlas of land at Dera Chahal could not be transferred to DHA due to protest by the Sikh community because the land belongs to Gurdwara Bebe Nanki.
Though the June 9, 2006, agreement between the ETPB and DHA could not be executed and the exchange/transfer of the lands was stopped because of the public hue and cry, the actual agreement was not cancelled. This led to a liability of Rs18.8 million on ETPB for expenditures incurred by the DHA Lahore for vacation of these lands from land grabbers/occupants.
The Ministry of Minorities approved an ambiguous ETPB board resolution on April 28, 2009, for acquisition of ETPB lands by the DHA, Lahore Cantt, against 25 per cent exemption plot files without considering an earlier offer by DHA extended on July 20, 2007, to acquire lands against 33 per cent exemption plot files.
The FIA report also suggested that the DHA paid compensation of ETPB lands at Mauza Lidher and Motasinghwala to unauthorised men to the tune of Rs657 million (Rs126 million in cash and 59 plots of one kanal each) without justification when beneficiaries do not exist in the list of legitimate lessees of ETPB.
“Therefore distinct possibility could not be ruled out of having receipt commission/kickbacks by DHA and ETPB and officials of the ministry concerned through these beneficiaries,” the FIA report alleged.
In some cases DHA Lahore paid compensation to land grabbers prior to the execution of the agreement between DHA Lahore and ETPB whereas Rs22.3 million was paid through cash showing mala fide on part of the ETPB and DHA Lahore.
The FIA report said that it discovered massive irregularities in spending of ETPB funds due to non-observance of procedural formalities as envisioned in the Pak-PWD Code and Management and Disposal of Urban Evacuee Trust Properties 1977. The proceedings will again be taken up by the court on Thursday.
23/07/2013
ISLAMABAD, July 22: While the Employees Old-Age Benefits Institution (EOBI) is being taken to task in the Supreme Court, it seems as if no one has noticed the rules violated by the CDA while making a deal with the Defence Housing Authority (DHA).
CDA’s role in this latest scandal has also come to light as the court picked up the issue. But the civic agency, it seems, was aware of its weak position and tried to cover its tracks.
It held meetings and wrote letters to show that it had made efforts for the retrieval of its lost land from the DHA and even warned the latter of legal actions.
It is important to note that the land measuring 321.3 kanals, which the DHA sold to the EOBI for Rs15.74 billion, was parceled out from the 868 kanals that were partly owned by the CDA and Commoners Town (CT), a private housing society.
This CDA and CT land was acquired by the DHA in 2008 after signing agreements with both.
And by this year, the CDA was trying to push the issue with the DHA - if the civic authority’s records are to be believed.
On May 16, shortly after the May 11 elections, the CDA member estate asked the DHA to provide the layout plans and arrange physical inspection of the developed plots promised to the CDA in exchange for the land it (DHA) had taken six years back.
On July 5, CDA Director Estate Management-I Mohammad Latif Abid wrote to Brigadier Saadullah Fatimi, the administrator of DHA, that “the developed plots (as per agreement) be handed over… to CDA, failing which CDA shall have to review the alternate options.”
In 2008, the DHA offered CDA 729 developed plots in its extension project in exchange for the land.
The CDA immediately handed over 2,412 kanals to the DHA but six years later it is still waiting for the allotment letters and layout plans from the DHA. Not a single plot has been handed over to the CDA.
The letter by the CDA director estate management was written two days after a meeting held by CDA Member Estate Shaista Sohail which was also attended by secretary DHA Col (retired) Ijaz.The agenda of the meeting was to review “the inordinate/inexplicable delay on part of DHA… in defiance of the agreement between CDA and DHA.”
It is not difficult to guess the atmosphere of the meeting as the minutes record that, “Member (Estate) CDA opened the session with a very serious view that DHA’s non-implementation of the signed agreement is an unacceptable violation of the agreement.
“She underscored that the DHA committed 729 plots… in lieu of the land. However, the agreement has been violated for the last six years by DHA.”
The member (estate), according to the minutes of the July 3 meeting, also warned the DHA that “… failing (a prompt reply from DHA) CDA shall review the alternate options which may extend to the cancellation of the agreement and/or filing of a writ petition with the court of law for non-conforming to… the agreement.”
But more serious is the fact that legal experts find the CDA-DHA agreement illegal.
Mohammad Ramzan Chaudhry, member Pakistan Bar Council and a former legal adviser to the CDA, is one such lawyer. He said the Supreme Court in its judgment on the E-11 northern strip case had declared that the CDA, being a development authority, cannot assign its role to any other organisation.
The CDA Board in 2009 had approved the development of the northern strip on a joint venture basis with MPCHS (Multi-Purpose Cooperative Housing Society). This agreement was declared null and void by the SC.
The court in its judgment said, “The CDA, which is a statutory body established by law, is mandated not only to make arrangements for the planning and development of the capital city but is also authorised/compelled to perform functions of a municipal committee.”
Chaudhry quoted the judgment and added that “Under the Islamabad Land Disposal Regulations 2005, the authority cannot give its land to any developers.”
According to him, the agreement with the DHA was even worse than the Joint Venture (JV) deal between the CDA and the MPCHS.
He disclosed that the CDA had handed over 2,412 kanals to the DHA under its land-sharing formula. However, the lawyer pointed out that the formula had been introduced for acquiring land from villagers for the development of sectors.
In other words, this formula was introduced to allow the CDA to buy land when it was short of cash. It would promise the landowners a developed plot in exchange for the land.
Chaudhry added: “In this case, the CDA took over the role of a landowner and gave its land to the DHA in exchange for developed plots later.”
CDA Member Estate Shaista Sohail could not be contacted for comments despite repeated attempts while Asiya Gul, a CDA spokesman, expressed ignorance about the matter.
When contacted for comments, a spokesman for the ISPR promised to get back but did not so till the filing of this story.
Secretary DHA Col (retired) Ijaz, however, according to the minutes of July 3 meeting with the CDA Member Estate, “admitted the delay and had no cogent reasons to defend the delay. He gave no firm time lines except expressing the hope that the matter shall be formally responded to by the DHA shortly.
See: http://dawn.com/news/1031256/cda-covers-its-tracks/?commentPage=1&storyPage=2
Rs15.74 billion to the DHA for 321 kanals and Rs6.8 billion for commercial plots and villas in January and April 2012
Rs1 billion to Abdul Qayyum for the purchase of Crown Plaza in F-7 Markaz in August 2012
Rs2 billion for purchase of four acres in Karachi in May 2012
Rs1.4 billion on purchase of 40 kanal commercial plot in Lahore in November 2011
Rs610 million for purchase of hotel in Lahore in November 2011
Rs10.618 million for the construction of another hotel in Lahore in 2010
Rs15 million spent for purchase of Toyota Prado 4,100cc in December 2010
Rs6.05 million for development of recreational facilities in Islamabad in 2011 and 2012.
See: http://dawn.com/news/1031254/detail-of-eobi-payments
22/07/2013
ISLAMABAD: President Asif Ali Zardari dismissed the report submitted by the Suddle Commission in the Arsalan Iftikhar case, and has given property magnate Malik Riaz Hussain a clean chit in a suspected tax evasion of Rs 119.4 billion,according to a Daily Times report by the Daily Times Monitor.
The president accepted Malik Riaz’s representation, and dismissed the much questioned December 4, 2012 decision made by the federal tax ombudsman (FTO), the Monitor stated in its article citing reports containing references to official Presidency documents.
The Suddle Commission had been formed by the Supreme Court in order to probe an alleged Rs 342 million business deal between Malik Riaz and the son of Chief Justice of Pakistan Iftikhar Muhammad Chaudhry, Dr Arsalan Iftikhar.
The commission had incriminated Malik Riaz in a colossal tax evasion that amounted to Rs 119.4 billion, and proposed that a penalty for concealment of assets in wealth statements filed with income tax returns be enforced on the property tycoon in its interim results.
The documents cited by the Daily Times Monitor also stated that a joint representation questioning a suo motu order passed by the FTO had been filed by Malik Riaz and the principal officer of Bahria Town (Pvt.) Ltd, under Section 14(I) of the Federal Ombudsman Institutional Reform Act 2013. This was concurrently corroborated by the presidential order, which suggested that the representation had indeed been filed.
The notice and the representation explained that the suo motu case concerning an alleged business deal between Malik Riaz and Dr Arsalan Iftikhar – an attempt to influence the judicial process – was disposed of by the Supreme Court on June 14, 2012, and the attorney general of Pakistan was subsequently directed to set the state machinery in motion in order to ensure that “all those who may have committed any illegal acts, including Malik Riaz, Dr Arsalan Iftikhar and Salman Ali Khan, are pursued and brought to book with full force and rigour of the law”.
The attorney general wrote to the National Accountability Bureau (NAB) chairman regarding the matter on June 18, 2012. Subsequently, Dr Arsalan Iftikhar filed CRP No 167/2012, which was allowed by the apex court on August 30, 2012. The FTO was appointed as a one-man commission, who was expected to hold an inquiry into the matter.
According to the documents, the commission had submitted three interim reports. After the third report was received, it was noted that it was no longer necessary for the commission to proceed further in the inquiry, and the matter was therefore disposed of.
According to the FTO Ordinance of 2000, the FTO’s responsibility is to identify, examine, compensate and correct any injustice done to a person through the maladministration by functionaries that oversee the laws of taxation. Referring to the law, the main objection raised in the representation was that the federal tax ombudsman did not have any authority to commence suo motu proceedings and issue notices to the petitioners.
The Presidency’s letter further argued that the term maladministration has been defined in Section 2(3) of the afore-mentioned ordinance, while Section 9(1) gives the tax ombudsman the authority to investigate any charges of maladministration on the part of the Revenue Division or any tax employee, and this he can inter alia do on his own motion.
When the Law and Justice Division sought the FTO’s comments, the FTO Secretariat reported on March 16, 2013 that the proceedings had only been taken against the maladministration committed by the FBR, adding the board would be responsible for taking any action prescribed by the Income Tax Ordinance 2001.
Section 32 of FTO Ordinance, 2000 states, “The Revenue Division or any person aggrieved by a recommendation of the federal tax ombudsman may, within thirty days of the recommendation, make a representation to the president who may pass such order thereon as he may deem fit.”
Formerly, the petitioners had filed an application that challenged the said order, with the FTO issuing a subsequent notice. The Law and Justice Division dealt with the matter, thus arriving at the conclusion that the action was ultra vires and void.
“The representation, therefore, is competent at this stage... This secretariat agreed with the said conclusion,” the report affirmed, referring to the Presidency documents.
“It appears that the FTO has taken upon himself to continue with the proceedings conducted as a one-man commission, which is beyond the ambit of the FTO Ordinance 2000,” the letter stated. “The proceedings initiated and the notice issued, therefore, is without jurisdiction. The FTO Secretariat has not filed any comments despite notice. In its response to the earlier petition, the FTO Secretariat had given out that the case is only against maladministration of the FBR... Accordingly, the president has been pleased to accept representation and to set aside impugned decision of FTO commencing proceeding against the petitioners on the basis of third interim report.”
EVEN as the revelations of the Abbottabad Commission about the sweeping powers of the military and its multiple failures are being discussed, the armed forces have been caught up in another maelstrom. The EOBI scandal landed up in the Supreme Court and led straight to Islamabad’s Defence Housing Authority. The revelations highlighted how EOBI funds had apparently been lost in a number of shady deals and how a huge chunk of the money was ‘invested’ in DHA land. When the Authority expressed its inability to pay back the Rs22.29bn, the court froze its accounts..
The court case has highlighted once again the lack of transparency in the affairs of the Islamabad DHA and its widespread ramifications. The land bought by the EOBI, according to the information provided in the court, was at prices far higher than the market price and it appears that the land is disputed. In addition, the FIA investigations reveal that the agreement between the DHA and Bahria Town precludes the DHA from selling land to a third party including the EOBI. Neither has the land handed over to the EOBI been developed as promised. The picture is far from clear and it will take some time before the allegations and counter-allegations can be verified. But this is not the first time that the DHA Islamabad has faced allegations of wrongdoing. To give one example, the investors of the DHA Valley (a residential scheme launched for soldiers and other junior ranks) have also complained of being swindled because of the agreement between Bahria Town and DHA.
In fact, rumours about the wrongdoings in DHA schemes have been the talk of Islamabad for years now and the absence of real information and hard facts have only allowed them to flourish. The military leadership needs to realise that the lack of transparency and accountability in running DHA are now tarnishing its image. Unless the military leadership is willing to launch an inquiry to determine if those running DHA played any role in the EOBI scandal; satisfy the investors of the DHA Valley; shed light on the agreements between DHA and private parties such as Bahria Town and Habib Rafiq; and bring some transparency to the running of the Authority, the allegations and rumours will not die down. This will only bring disrepute to the entire institution of the armed forces.
20/07/2013
Massive scam: Supreme Court freezes DHA bank accounts
ISLAMABAD: The alleged multibillion-rupee scam in the Employees’ Old-Age Benefits Institution (EOBI) took a nasty turn for the Defence Housing Authority (DHA), Islamabad/Rawalpindi on Friday.The Supreme Court ordered freezing of the DHA’s bank accounts following its failure to deposit Rs22 billion with the registrar in compliance with the apex court’s earlier orders.
“All the accounts of the DHA Islamabad/Rawalpindi are being frozen till the authority deposits the money with the registrar of this court. During the course of the day the list of the DHA accounts is to be filed with the registrar,” ordered a three-judge bench, headed by Chief Justice Iftikhar Muhammad Chaudhry.
The bench was hearing a suo motu case regarding an alleged Rs40 billion scam in the EOBI. The bench ordered that all the banks in which the DHA maintains accounts file daily reports with the registrar, while the DHA will not be able to open new accounts.
In the meantime if the DHA wants to deposit the money in question, it can file an affidavit, deposit the money and get its accounts unfrozen, the bench observed.
The DHA counsel, Advocate Ahmer Bilal Soofi, informed the court that his client did not have the money in cash to deposit with the registrar. On July 17, the bench had given the DHA 48 hours to deposit the money.
Furthermore Advocate Sufi said that the DHA had already issued allotment letters for 50 acres of land the EOBI purchased in 2011 and 2012.
“You have only given them pieces of papers. The allotment letters are not equal to transfer of title of the land as possession has not been handed over to the EOBI,” observed Justice Jawwad S Khawaja, another member of the bench.
Justice Chaudhry took note of the last payment made by the EOBI to the DHA on March 15, 2013 – the last day in office of the Pakistan Peoples Party-led government. The hearing was adjourned till July 26.
The inquiry report submitted by the Federal Investigation Agency (FIA) regarding the EOBI deal with the DHA and purchase of land in Chakwal claimed that the deals were not transparent.
Flouting its rules, the EOBI invested in the private sector and purchased ‘raw land’ while paying price for ‘developed plots’ after an evaluation of the land’s market value by inexperienced and unqualified persons, FIA’s Additional Director General (Legal) Azam Khan informed the bench.
According to the FIA report – a copy of which is available with The Express Tribune – the EOBI paid the DHA Rs15.473 billion on January 18, 2012 for purchase of 321 kanals [50 acres] of land and another Rs6.82 billion on March 15, 2013 for the purchase of plots in Sector-F, Phase-I of DHA, Rawalpindi.
“The EOBI got the land evaluated by M/s Diamen Associates. The managing director of the firm, Wamiq, and his employee, Shujja, were questioned by the FIA. It was learnt that Shujja carried out the evaluation study while he does not have the intermediate certificate and has no relevant experience. Further, the EOBI paid the evaluator Rs44 million,” states the FIA report.
According to the evaluator, his firm had informed the EOBI that there had been no sale and purchase of property in the area where the Institution wanted to purchase land from the DHA.
The DHA administrator has admitted that the EOBI had not been given possession of land, states the FIA report. About the title of the land, he said that under the DHA rules the ownership always remained with the authority.
The report also points out that the EOBI purchased plots from the DHA in a disputed area as some local residents alleged that the DHA never purchased the land from the Capital Development Authority (CDA).
The report further points out that the EOBI purchased Crown Plaza in F-7 Markaz and paid Rs1.02 billion on October 16, 2012. EOBI officials received Rs150 million in kickbacks in the deal, the report alleges. In his statement, the seller, Abdul Qayum, confessed to the payment of kickbacks to EOBI officials. The deal was finalised by Wahid Khursheed, Adviser/Director General (Investment) EOBI.
According to the report, the EOBI didn’t seek prior permission from its Board of Trustees for the deal.
The report also highlights the deal for the purchase of a one acre plot of land in Kallar Kahar, Chakwal, from Maqsoodul Hassan Minhas, brother of Raja Azeem, who is the son-in-law of former premier Raja Pervaiz Ashraf. The land was purchased at Rs200,000 per marla, while its market value was Rs30,000 marla.
The EOBI also bought 1.9 kanals of land on Talagang Road, Chakwal, from Raja Sanaul Haq, also a brother of Raja Azeem, for Rs15,50,000 per marla while its market price was Rs60,000 per marla. Interestingly, the seller had demanded Rs12,00,000 per marla, reveals the FIA report.
It adds that the amount mentioned in the registered sale deed is less than the amount paid by the EOBI.
See: http://tribune.com.pk/story/579461/massive-scam-supreme-court-freezes-dha-bank-accounts/
19/07/2013
EOBI Scam: SC orders freezing of DHA Rawalpindi and Islamabad Accounts
ISLAMABAD: The Supreme Court of Pakistan has ordered that the accounts held by Defence Housing Authority (DHA) Rawalpindi and Islamabad be frozen, reportedExpress News on Friday. The order was given during the hearing of the Employees Old Age Benefit Institute (EOBI) scam case
The court further added that the accounts will remain frozen till the owed amount, Rs22.24 billion is not paid back.
The Supreme Court on Wednesday had ordered DHA to submit Rs22.24 billion that EOBI had paid to it in a shadowy deal to purchase 321 kanals of land.
Chief Justice Iftikhar Muhammad Chaudhry directed DHA’s advocate Ahmer Bilal Sufi to deposit the money with the court’s registrar office by July 19 or furnish the details of the DHA’s assets. “The assets can be attached if the money was not deposited,” he added.
Advocate Sufi tried to convince the bench that the land was worth purchasing, the deal would benefit the EOBI and its investment was secure. He said that the developmental work on the land had been 70% to 80% done and was due to complete within 3 months. He further added that Rs 9 billion and Rs 11 billion had also been respectively provided to the DHA and Habib Rafique Group and Bahria Town for the developmental work.
“The DHA does not have such a huge equity right now to deposit with the SC’s registrar and some time may be given to the authority for explaining its position,” Sufi argued on Thursday.
See: http://tribune.com.pk/story/579096/eobi-scam-sc-orders-freezing-of-dha-accounts/
real estate of billions....EOBI another form of NICL scam, involves....Brother of ex-PPP minister spent EOBI money like a king
ISLAMABAD: Absconding former chairman of the Employees Old-Age Benefit Institution (EOBI) Zafar Iqbal Gondal, who is sought by investigators for questioning about alleged massive shady deals involving billions, remained on an unprecedented shopping spree during his tenure as he spent Rs34b from the coffers of this organisation to purchase properties for it.
While Gondal “invested” Rs34,387,184,400 EOBI funds in real estate in less than three years of his stay in this position, the institution purchased commercial, residential, industrial, agricultural and amenity lands for Rs9,490,265,619 since its inception in 1982 till 2009, official documents available with The News show.
Efforts were made to reach Gondal to know his side of the story, but he was inaccessible and his cell phone was switched off.
Another scandal, akin to the scam involving NICL (National Insurance Corporation Company), looms large on the horizon where properties worth much less than the money paid by EOBI, were purchased by Gondal without following the due process, specifically the approval of the Board of Trustees.
The real estate bought by Gondal from 2010 to April 2013 from the EOBI funds was shown to have the market value of Rs35,520,710,009 while the worth of similar properties bought from 1982 to 2009 was stated to be Rs14,278,615,889.
The Supreme Court, which has taken a suo moto notice of the EOBI corruption scandal, has ordered the Defence Housing Authority (DHA) Islamabad to deposit Rs22 bn within 48 hours with its Registrar’s office or face freezing of all its accounts, and directed six individuals to deposit Rs7,087m they received from the EOBI for the purchase of property.
Zafar Iqbal is the younger brother of former federal minister Nazar Mohammad Gondal.In just four months, from January to April this year, Zafar Iqbal spent Rs11.334 bn from the EOBI funds to purchase properties. His last transaction was carried out on March 15, the last day of the previous government.
According to the documents, on March 15, the EOBI purchased 23 commercial plots and 538 residential plots and villas of the DHA Rawalpindi Phase-1 for Rs6.825b.
On February 20, plots of various sizes were purchased in the Pak Arab Housing Scheme, Ferozpur Road, Lahore, for Rs1.15b. They included 515 plots of 5 Marlas, 64 plots of 10 Marlas and 75 commercial plots from 2.5 to 5 Marlas.
On February 7, the EOBI spent Rs900m on purchasing residential plots located in Eden Villas Housing Scheme Faisalabad. These included 2,162 Marlas (355 residential plot of various sizes) and 339.19 Marlas (65 commercial plots of various sizes).
On February 9, Gondal spent another Rs1.3b of EOBI funds on purchasing commercial plots located in River Edge Housing Scheme (At Park View Villas) 17-KM Multan Road Lahore. These included 904 Marlas, 226 commercial plots located in Phase-II of the project.
On January 18, 3,500 shares of the Faqir Plaza and Company along with shares and property owned by the company were purchased by the EOBI for Rs36m.
On January 30, Gondal invested Rs790m of EOBI by purchasing open plot No. 101 having old building at Mall Road Lahore measuring 9.02 Kanals. On the same day, the EOBI bought for Rs333m plot No. 54, which is the residential property located on Main Gulberg Road Lahore measuring 12 Kanals.
The EOBI bought properties worth Rs21.28b in the year 2012. On January 18, the EOBI purchased 321.3 Kanals from DHA, Islamabad in Phase-I and Phase-II Extensions, DHA Expressway and DHA Valley for Rs15,743,700,000. This is the transaction about which the apex court Wednesday directed the DHA to deposit Rs22b with its registrar.
On January 13, Gondal invested Rs120.9m of EOBI to purchase 2,428 sq. yds. of plots Nos. 4 and 8 located next to Mobilink business centre, TCS, Warid Telecom & opposite to KFC at Sukkur.
On January 4, the EOBI spent Rs2b to buy 19,360 sq. yds. comprising Survey # 536-537 in Naclass 153, Deh Mehran District Malir, Karachi East.
On May 18, 2012, Gondal purchased Crown Plaza located in F-7 Markaz Islamabad, measuring 600 sq. yds, and paid Rs1b.
On June 29, the EOBI invested Rs1b on buying 222 plots of different sizes in Eden Garden Housing Scheme, Eden Main Boulevard Housing Scheme and Edenabad Extension Housing Scheme Lahore.
On July 16, the institution spent Rs1.3b in buying 742 plots of various sizes in River Edge Housing Scheme, 2 KM from Thokar Niaz Baig, Motorway Interchange on Multan Road Lahore.
Two transactions were carried out on the same day, December 18, involving Rs90.245m. An amount of Rs30.2m was spent on purchasing one Kanal and 19 Marlas land on Talagang Road, opposite Caltex Pump, Chakwal. The EOBI also invested Rs60.45m and purchased 8 Kanals in Mouza Kalar Kahar Tehsil Kalar Kahar, Chakwal.
Documents show that properties worth Rs1.771b were purchased by the EOBI from July 1, 2010 to December 31, 2011, which was the initial period of Gondal’s posting as its chairman.
On September 16, 2011, the EOBI invested Rs250m and purchased three Kanals and 16 Marlas in Hadbast Mouza, Lahore; spent Rs80m on October 28 to purchase 2 Kanals, 8 Marlas, Main Lower Hall, Lahore; and bought 40.825 Kanals in Mouza Sehjpal, DHA, Interchange on Ring Road, Lahore for Rs1.437b.
See: http://www.thenews.com.pk/Todays-News-2-190903-real-estate-of-billions
18/07/2013
Apologies! I haven't got to updating this page as I was travelling, but with the Supreme Court looking into the EOBI scam (finally), a flurry of updates today: Surprising to see such negative press about DHA, HRL, Malik Riaz and Bahria Town in the Express Tribune to begin with.
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| Express Tribune. Page 9. 18/07/2013 |
Also from Karachi:
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| Express Tribune. Page 12. 18/07/2013 |
And in the DAWN:
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| DAWN. Islamabad Metro. 18/07/2013 |
22/07/2013
More news in the papers today regarding Malik Riaz answering FIA's questions. Interesting to note the blatantly positive coverage in the Express Tribune, versus other papers.
Every year Bahria Town sends its employees — selected by random draw — on its own expenses for Hajj.The chief executive of Bahria Town, Malik Riaz, while recording his statement before the FIA Special Investigation Unit, said the company bore the Hajj expenses of 200 people including 32 employees in 2009. In 2010, the real estate giant had sent 248 people for Hajj including 56 employees.
Giving details, Malik Riaz said payment for the air tickets of 200 people was made through cheque of Rs17,500,000 numbered 0191690 dated 4-11-2009 drawn in favour of PIA through his Accounts Manager Ghulam Mustafa.
He also said that payment for the 248 pilgrims was made through a cheque of Rs16,800,000 number 0191721 dated11-10-2010 drawn in the name of PIA and cheque number 0191720 of Rs1,694,000 for PIA and cheque number 0191722 of Rs3,200,000 for Southern Travels Private Limited.
Apart from the airfare, he said, Bahria Town paid the Hajj expenses including transport and boarding in Mina and Arafat for most of the people it had sent for the pilgrimage. The company bore full expenses of its employees.
Regarding the ministry of religious affairs’ claim in its letter that it paid for Bahria Town employees’ stay in Makkah and Madina in 2009 and 2010, Malik Riaz said he was willing to pay the amount from his pocket.
Malik Riaz said that he had paid for the Hajj expenses of Babar Qureshi and his wife. The Hajj visas of Bahria Town employees were processed through the interior ministry’s Private Secretary Raja Javed Iqbal.
He said that he has paid Rs2,552,416 to the religious affairs ministry via cheque number 0191738 for 32 employees (Rs79,763 per head) that went for Hajj in 2009. Similarly, for the year 2010, expenses for the stay in Madina for 56 employees of Bahria Town were paid vide cheque number 0191739 worth Rs644,000.
He said that he stands by his statement given on April 7, 2011. He said that he never had any mala fide intentions in paying expenses for the holy pilgrimage. Malik Riaz said he was willing to pay for the Hajj airfares worth Rs39,194,000, then why not much lesser amount for the boarding expenses for 88 of his employees.
The delay in payment was due to the late receipt of bills from the ministry of religious affairs and others.
Later talking to the media, Malik Riaz said that if sending people for Hajj was a crime, he would continue doing so.
See: http://tribune.com.pk/story/566709/bahria-town-pays-for-its-employees-hajj/
However in the report in the DAWN, only 32 of the 400 so people he paid to perform Hajj were his employees.
Federal Investigation Agency (FIA) on Friday grilled the property tycoon Malik Riaz Hussain in sponsored Haj case.
The Ministry of Interior had offered the Haj facility to 427 politicians, journalists and employees of Bahira Town in 2009 and 2010, but the payment from the sponsors was received after months’ delay.
Qasier Qadeer Qureshi, legal adviser to Bahria Town, confirmed that the property tycoon was quizzed by the FIA officials.
According to him, Malik Riaz informed the FIA investigators that he had cleared all the dues for the sponsored Haj.
Sources in the FIA told Dawn that Malik Riaz maintained before the FIA team that since he was unaware of the payment hence the delay.
The sources alleged that Malik Riaz made payment after Supreme Court took cognizance of the matter.
The issue of sponsored Haj was taken up by the Supreme Court in 2011 during the hearing of suo motu notice case related to the corruption of Haj arrangements.
On the directions of the Supreme Court the FIA in 2011 had also recorded the statement of those who availed the ‘free’ Haj facility.
The Religious Affairs Ministry had demanded outstanding bills worth millions from the interior ministry.
Former Religious Affairs Minister Hamid Saeed Kazmi when contacted said that the Interior Ministry and its sponsors had arranged travelling of the sponsored pilgrims from Pakistan to Saudi Arabia and back.
But the Religious Affairs Ministry provided them accommodation and local transport during their stay in KSA on the request of then Minister for Interior Rehman Malik.
Later, it had demanded from the Interior Ministry the standard charges for the facilities it provided to the government sponsored pilgrims, he added.
A senior FIA official on condition of anonymity said that the property tycoon and a former deputy speaker of National Assembly sponsored the Haj for the politicians and the journalists but did not pay the required amount either to the Ministry of Interior who had invited them or to the Ministry of Religious Affairs who provided accommodation to these pilgrims.
He said that after the statement of Malik Riaz, the FIA summoned the authorities of Interior Ministry and the Ministry of Religious Affairs to decide the fate of tycoon.
He explained that the accommodation provided to the 427 private persons including 32 employees of Bahria Town were arranged from the amount which the pilgrims had deposited with the national exchequer for performing Haj and misuse of the said amount was an offence.
Malik Riaz did not voluntarily return the amount to the government but FIA recovered from him the required payment, he added.
“In the light of the statements of the officials concerned of Interior Ministry and Religious Affairs Ministry, the investigators would determine whether any crime would be made out against the tycoon or not” the official maintained.
See: http://www.dawn.com/news/1019940/fia-grills-property-tycoon-malik-riaz
Haj Scandal: FIA grills Malik Riaz
The Federal Investigation Agency (FIA) Friday grilled the founder of Bahria Town Malik Riaz in Haj scandal, Geo News reported.
Malik Riaz said that he had nothing to do with the Haj scandal, advising the investigation officer to hang those involved in the scandal.
FIA investigation officer Husain Asghar quizzed Riaz in its special investigation unit. Former deputy speaker of National Assembly Haji Nawaz Khokhar and Malik Riaz's counselor Zahid Bukhari were also present on the occasion. As many as one and half dozen of lawyers were also present outside the FIA office.
Talking to mediamen, Riaz claimed that he had sent 200 people including journalists to perform Haj, saying that he confesses this ‘crime’.
See: http://www.thenews.com.pk/article-106275-Haj-Scandal:-FIA-grills-Malik-Riaz
21/06/2013
Malik Riaz says he will answer FIA questions
ISLAMABAD: Famous businessman Malik Riaz has said that he would appear before a special investigation unit of Federal Investigation Agency (FIA) on Friday to answer questions related to the Haj scandal 2010.
Talking to The News, Riaz said he has been summoned by Special Investigation Unit (SIU) of FIA that is probing a multi-billion Haj corruption scandal but claimed that his only crime was to send people on Haj for free and he will continue to commit this crime.
However, FIA sources told The News that Riaz is being investigated for allegedly sending dozens of his men on special Haj flights sponsored by the government of Pakistan in 2009 and 2010.
According to sources, Riaz will appear before SIU which is probing corruption worth billions of rupees during Haj 2010. Hussain Asghar, the director of FIA’s Special Investigation Unit (SIU), is leading the investigations into mega Haj scam on the directions of the Supreme Court of Pakistan. The scandal has already caused arrest of former federal minister for religious affairs Hamid Saeed Kazmi and many other important officials.
Sources in SIU said Malik Riaz had allegedly sent 32 persons on a free Haj flight sponsored by the government of Pakistan in 2009. Next year, the property tycoon sent 56 more persons on a similar government funded flight causing huge loss to national exchequer.
Sources added that Riaz eventually paid back the cost of travel in the year 2012, only after the Supreme Court took suo motto notice over the Hajj scandal.Sources said Riaz’s return of money does not exonerate him as the crime was indeed committed and the amount was only returned when the scandal was exposed.
When asked why suddenly the case has been re-opened, FIA sources said the investigations were halted by some powerful circles in past but currently the situation has improved after the installation of the new government.
However, talking to The News, Riaz rubbished FIA’s claims saying he had paid for the entire flight on the request of the then Minister of Interior Rehman Malik. “They (government) asked me to donate money for the flight. These pilgrims were some poor people, some journalists and some others recommended by the Ministry of Interior,” he said adding that he paid an amount of Rs39.1 million as air-fare at once.
However, Raiz said he was later told that some amount is due against him as around 80 people did not pay dues for their accommodations in Saudi Arabia. “Then again I paid two installments of Rs6.5 million and Rs 2.8 million for the accommodation expenses,” he said.He refused to comment on the reasons for FIA summon but said he will continue to sponsor people for free Haj as this is a public service.
See: http://www.thenews.com.pk/Todays-News-2-185020-Malik-Riaz-says-he-will-answer-FIA-questions
A judge of civil court was issued a show cause notice for seeking explanation for issuing stay order in a civil suit of Bahria Town.Following the show cause notice, the honourable judge withdrew his June 15 stay order for maintaining status quo in the case.
It should be recalled that after the order of the Supreme Court issued on June 5, the DCO Rawalpindi told newsmen that he has constituted four committees to demarcate the land of the forest department situated in Rakh Takht Pari and Rakh Lohi Bher. He had said that these committees will start marking the land from June 17.
He had further told that notices have been issued in this regard to the relevant parties, including Bahria Town.
Bahria Town filed a civil suit against this action by the forest department in the civil court in Rawalpindi on June 13. Bahria Town maintained that the DCO has taken this action through misinterpretation of the Supreme Court judgment as under the Forest Act, Punjab Local Government Ordinance a DCO has authority to issue orders to mark the farm land only and not the forest land.
The court summoned DCO and the forest department on June 15. All the parties were present in the court on 15 June 2013. After hearing the arguments and reviewing the records, the court issued status quo order and postponed the hearing till June 20.
On Thursday, while assisting the court the counsel for the Bahria Town Muhammad Ilyas Shaikh Advocate Supreme Court said that the court had issued the order of status quo on June 15 under the Order 39 Rule (b) of civil code. On this the judge smiled and remarked that he has been issued a show cause notice and an explanation has been called from him on issuing stay order in this case.
The counsel for Bahria Town said that if the matter was so, he and his other lawyer colleagues would prefer to go to the district judge, “because the independent judiciary we have been hearing about should be so.”
The honourable judge asked the Bahria Town lawyer to continue his arguments.
As the judge went to his chamber after the hearing, he was summoned by the district judge in his chamber where DCO Rawalpindi was already present. After about half an hour the judge emerged from the chamber of the district judge and came straight to the court and issued verbally the brief order of cancelling the of status quo and fixed the date for the next hearing on July 6, and went back to his chamber.
See: http://tribune.com.pk/story/566260/bahria-town-civil-suit-judge-gets-show-cause-notice-for-granting-stay-order/
09/06/2013
Accountability court acquits Malik Riaz, his son
An accountability court on Saturday acquitted real estate tycoon Malik Riaz and his son, Ali Riaz, in the 1,401 kanal land fraud case.The Anti-Corruption Establishment (ACE) had registered a case against Bahria Town and some officials of the Punjab Revenue Department on November 4, 2009, on the complaints of residents of some villagers near Rawat. Malik Riaz, his son and others were accused of bribing revenue officials to get 1,401 kanals of ‘shamilat’, or community land, transferred to their names on fake documents. However, in October last year, the ACE on request of NAB transferred the matter to the accountability court. The NAB prosecutor had submitted a plea under Section 31-B, stating that after examining the available record and evidence, the bureau had found that Malik Riaz and his son were not liable to be accused. Accountability court judge Chaudhry Abdul Haq reserved the judgment Saturday morning and issued it later in the day, acquitting Malik Riaz and his son, Ali Riaz, of all charges while accepting a plea bargain of Patwari Rizwan. -
See more at: http://www.pakistantoday.com.pk/2013/03/02/news/national/accountability-court-acquits-malik-riaz-his-son/#sthash.7SR7NtXk.dpuf
In the newspapers today:
Bahria Enclave has no NOC. Many hundreds of millions poured in.
08/06/2013:
Bahria Town allegedly harassing farmers
The villagers are not interested in selling their land and want to continue cultivation on their agricultural lands, but they are allegedly being harassed with the help of local touts and police. Various pressure tactics are allegedly being used to press and force the farmers to sell their land for the expansion of the housing society.
A poor villager told Daily Times that he was receiving threats from some influential people who first tried to convince him to sell the land, however, when he refused they resorted to threats. “My forefathers settled this land and I have special association with it, therefore we do not want to sell this land at any cost, come want may,” he remarked.
Another villager said many people have sold their land due to the pressure of influential people of the area and property dealers’ mafia. He acknowledged the fact that their lands’ prices have been increased due to Bahria Orchard scheme, however, as per market estimates the price of his land was higher that the offer being made by the Bahria officials.
“I do not want to sell my land at their price and they are pressing me one way or the other. I am tired of putting off their touts, but some of them are harassing me and my family.” On the contrary, when contacted, City Raiwind Police Station Duty Officer Ghulam Rasool denied the allegation that police was harassing the villagers. “We have nothing to do with this business.” He said if someone is found involved and police is approached we would take strict action because Bahria Town Orchard is situated near Pajian which falls in City Raiwind Police Station’s jurisdiction.
Meanwhile, Bahria Town media manager Nida Zahoor said the matter was not in her notice and she needed to confirm it from a local officer of the society. “I would be able to respond on this matter tomorrow,” she added. Experts are already criticising expansion of the city and loss of rich agricultural land to residential societies. Deforestation in the name of development is also causing serious environmental threats and imbalance of biodiversity. They have recommend vertical development of city instead of horizontal, which has caused axing of a large number of trees and loss of fertile agricultural land. They have demanded the policy makers and town planners to stop the illegal expansion on the city in the name of housing.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C06%5C08%5Cstory_8-6-2013_pg7_17
SC orders two firms to return Rs986m by 10th
ISLAMABAD - The Supreme Court on Friday ordered the two companies - Elezium Holding Pakistan and Island Private Limited - involved in sale of billions of rupees Gurdwaras land to DHA to return Rs986 million by June 10, 2013.The court also ordered the heads of the companies Shirjeel Muhammad Shah and Muhammad Hamad Arshad to submit their passport at the SC Registrar office. The court ordered FIA that in case they don't deposit money then arrest them after registration of cases.Sardar Ram Singh, ex-member District Assembly Malakand (Dargai), and others had filed an application in the Supreme Court therein argued that Chairman Auqaf Property Board is unlawfully selling Evacuee Trust Property. A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry granted one-week time to former chairman Evacuee Trust Property Board (ETPB) Asif Hashmi to appear before the court.Hearing the case, the Chief Justice remarked that Pakistan was a civilised country, where the minorities have equal rights. He said such incidents tarnish the image of Pakistan in the world. The CJP said: "When we go abroad people talk about discriminatory attitude with the minorities, which is wrong."Hamid Khan, appearing on behalf of Asif Hashmi, informed that his client was in Saudi Arabia to perform Umrah. The learned counsel told that he had talked to the former chairman ETPB and informed him that court had summoned him. Hamid Khan prayed to the court to give one-week time.The petitioners' counsel told the bench that last night he met with one of the members of the ETPB, Azra B Shujat. He said Azra Shujat gave her written statement to him about the agreement to sell Trust's land to DHA. The lawyer read statement in the open court.According to that during the tenure of Asif Hashmi as chairman ETPB several meetings of the trust were held regarding the investment of evacuee trust properties but in none of them this issue was brought on agenda or discussed. "Later on it came to her knowledge that approval about the deal was obtained from the federal government.Azra Shujat's statement further said that the board members were unaware of the deal, as the chairman didn't inform anyone. The learned counsel informed that it also came to his knowledge that some money out of total amount was invested in the stock exchange, which was illegal as that was public money.FIA Director (Legal) Azam Khan informed the court that both the companies received Rs 986 million from the deal, which with mark up now is Rs 2.97 billion. The Chief Justice asked the CEO Elezium Muhammad Hammad Arshad that both of them have to return the money as the property belonged to Sikh. The CJP asked them, "If you would not submit the amount then FIA after registering a case would arrest both of you."Muhammad Hammad Arshad informed that he bought the company last year, while the agreement took place in 2009. "Neither I received this amount nor used it." The Chief Justice asked him that he had purchased the company with the profit and loss. "If you get the profit then you also have to bear the loss," he added.The CEO Island prayed to the court that he only owed Rs280 million but he didn't have this amount in cash therefore one month time be given to pay back that amount by selling his properties. The court, however, rejected his request and ordered him to deposit the amount by June 10 otherwise be ready for arrest.The case was adjourned till June 14.
07/06/2013: DHA Islamabad bank accounts seized
Large Taxpayer Unit (LTU) Islamabad has seized the bank accounts of Defence Housing Authority (DHA) Islamabad for non-payment of taxes, official sources said here on Tuesday. It has been reliably learnt that the LTU Islamabad has raised tax demand of Rs 558 million against the authority. After fulfilment of all legal formalities and procedures, LTU Islamabad has seized the bank accounts of the said authority.
Sources explained that the authority fell within the jurisdiction of the LTU Islamabad. The accounts have been seized for the past one week but the authority has yet not made any payment to the LTU Islamabad. Moreover, tax authorities were unable to recover substantial amount of revenue from the banks accounts of the authority. The tax authorities are seriously considering taking further enforcement action against the authority's officials for persistent non-compliance. Some other action by the LTU Islamabad is expected in coming days in this regard, official added.
See: http://www.brecorder.com/taxation/181:pakistan/1195407:dha-islamabad-bank-accounts-seized/
05/06/2013: Bahria Town's sector D, E and F still controversial
LAHORE: The Lahore Development Authority (LDA) has said that Bahria Town’s sectors D, E and F are still controversial as these are not approved by the competent authority and the people have invested money at their own risk despite public information campaign by the authority.LDA Metropolitan Planning officers Tuesday told Daily Times that the Bahria Town administration’s representatives visited the LDA offices along with written response to the show-cause notices served on the housing society by LDA, however, the reasons given in their response were invalid and inappropriate and did not provide a justification to by-pass the rules and regulations. He said the issue of the three extended sectors in Bahria Town, owned by property tycoon Malik Riaz, on Link Canal Road near Mohlanwal, is still the same ‘unapproved’. These sectors are not under the legal cover and plots being sold there are illegal under the law. Another director of LDA said under section 18 (2) of the Private Housing Scheme and Land Subdivision Rules-2010 the sale of plots in any schemes was prohibited until final approval is taken from the competent authority. He said Lahore Metropolitan Planning was the competent authority and no approval has been taken so far from it. When asked about the people who have already purchased plots in the controversial sectors investing their hard-earned money, he said the LDA has formally informed the people through its advertisements in newspapers and display of banners at prominent places in the city. “If people are still purchasing plots, they are at their own risk we have fulfilled our responsibility. He said many schemes are deceiving and depriving innocent citizens of their hard-earned money, therefore it was the responsibility of the purchasers to get proper information from LDA offices before investing their money.”It is noteworthy that LDA took out an advertisement in newspapers in February titled “Buyers—Beware of Purchasing Plots: In Sectors D, E& Fond Phase-2 of Bahria Town Lahore” The advert read: “The public is hereby made aware of the ongoing advertising campaign by the management of Bahria Town, Lahore, for alluring the buyers for purchasing plots, carved a~: on land for which approval had not been sought from the Competent Authority. The factual position about these schemes is as under: Sectors D and E of Bahria Town, Lahore, have not been got approved by the Competent Authority. Similarly Sector F has also not been got approved by the Competent Authority where plots are being illegally marketed these days through media. “Lahore Development Authority is fully authorised to demolish such illegal development works under Clause 40 of the LDA Act. 1975. Further, the sponsors also liable to be punished for fine a imprisonment, under Clauses 33 & 38 of the LDA Act, 1975.” Bahria Town Media Manager Nida Zahoor was not available for her comments. The Bahria Town administration claims to have its sector A, B and C approved by the Allama Iqbal Town Municipal Administration. Through advertisements, it also declares its sectors D and E completely developed projects for which it claims to have submitted applications to the respective TMA (Iqbal Town). It, however, declares its sector-F project under planning process. The LDA administration also claimed that LDA advertisement campaign against it was politically motivated. However, LDA Director General Ahad Khan Cheema has already clarified that the LDA has not taken action against Bahria Town at the behest of any political party but for the public interest and to get their law implemented.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C06%5C05%5Cstory_5-6-2013_pg1_6
22/05/2013:
Big news out of Florida. Thomas Kramer, the "Miami property tycoon" that Bahria Town advertisements were hailing as a major investor in the Bahria City Karachi project has gone bankrupt. According the to the following detailed report, not only has he gone bankrupt, but he was counting on Malik Riaz to help him out:
Red-eyed with exhaustion, Thomas Kramer slumped behind his empty desk. The real estate tycoon had been up all night worrying about how to break the news to his employees. As they filed in, he reached across the desk and grabbed a bottle of pills. Behind him, green lights blinked on an oversize map, indicating the dozens of exotic locales he'd visited. But the shell-shocked look on his face made the towering, blond German look less a glamorous entrepreneur than the general of a defeated army.
It was a Thursday morning in early March, and Kramer had called an emergency staff meeting in his "war room," as he referred to the office in his opulent Star Island mansion. The seven-member team that gathered around him had known for months their boss was facing money problems. He was so short of cash, in fact, he'd borrowed money from friends and sold off his extensive watch collection to meet payroll. Until we marched into his office, though, no one knew just how dire the situation had become.
Thomas Kramer is famous for his extravagant lifestyle.
Kramer's Portofino Tower is still a high-end hot spot in South Beach.
Marc Averette
"I can no longer afford to keep you guys," Kramer said softly as he began to cry. "There are only so many watches I can sell. I feel like I have failed you all."
In the 12 months I'd worked for Kramer as his in-house writer, I'd witnessed firsthand his crippling mood swings, but I'd never seen him this depressed. "I see no other option," he sobbed.
That morning marked a new low in one of the most incredible rise-and-fall stories in Miami Beach's storied history of booms and busts. In the 1990s, Kramer was SoBe royalty, the man who'd spearheaded the South of Fifth revival and ruled from a waterfront mansion where wild shindigs sometimes turned into outright orgies. More than anyone, he symbolized an era of glamour, decadence, and carefree excess.
Now it was all over thanks to a Swiss court ruling in January that Kramer had to repay nearly $200 million to a German currency-printing dynasty. His appeals were up. Everything had to go — the house, the staff, the jewelry, the extensive cellar of vintage wine, even the taxidermied giraffe that greeted visitors in the hallway. Because of my job in Kramer's mansion, I had a unique front-row seat for his last days in Miami Beach. I saw one man's desperate efforts to salvage his name and his livelihood, afraid but hopeful that some last-minute opportunity would save him from financial ruin.
In fact, by the time he dismissed his staff, Kramer had already found the man he believed could be his long-shot savior: a scandal-tarred Pakistani plutocrat named Malik Riaz who wanted a partner to build a $20 billion island city in Karachi. Riaz, Kramer said that morning between sobs, was his last best hope.
"This is a once-in-a-lifetime chance to bring Pakistan back on the map of the leading nations in the world," Kramer later said of the project.
If he succeeds in Karachi, Kramer could pull off the ultimate coup in a career full of remarkable comebacks. If he fails, though, it's anyone's guess how low he could fall.
"I don't see any possibility of the island project materializing," says Amir Mateen, a Pakistani reporter who wrote a ten-part series about Malik Riaz for the Pakistani newspaper theSpokesman. "It has all the ingredients of a scam."
Thomas Kramer was a notorious figure even as a teenager. He was born April 27, 1957, in Frankfurt, Germany, and by the age of 13 he was making waves with a rabidly right-wing student newspaper he founded called Pausenzeichen, the German word for "recess" or "break."
As student protests raged against the Vietnam War, young Thomas watched cars burning in the street and police battling protesters, he recalled in interviews for his unpublished memoirs. Even though he had yet to visit the country, Kramer loved America, or at least the idea of America. To him it represented freedom and democracy, while the student protesters represented the opposite: the tyranny of East German-style socialism.
After his home was graffitied with threats tied to his newspaper, his father, a stockbroker named Willi Kramer, and his mother, Ingeborg, shipped Thomas off to Salem Boarding School, a posh private academy housed in a castle. Suddenly surrounded by students and teachers who agreed with his right-wing views, Kramer grew bored with politics. It was a move he'd repeat throughout his life. He thrived on conflict.
Instead, the teenager turned his energies to making money in the stock market just like his father. The fact that Willi's son wasn't old enough to trade didn't stop him. Kramer often told a story about changing his age on his passport, opening an account with 500 Deutschmarks, and then trading on the school pay phone. By the end of high school, he claimed, he made his first million Deutschmarks. (Though he also admitted he just as quickly lost it on bad investments — another recurring pattern.)
By 1976, Kramer was working on Wall Street, where he spent the next decade as a commodities trader commuting between Germany and New York. He was already getting a reputation as a major-league playboy. For his 30th birthday party in 1987, he rented a German castle, invited 200 guests, and made a grand entrance dressed as a circus ringmaster riding an elephant.
Kramer attributed his early success to his dreams — literally. "I am a man of visions," he toldForbes magazine in March 1993. "One time I had a dream about a burning field. I knew I should buy wheat and corn futures. That is how it is with me." Another dream, he claimed, told him to take all of his money out of the market, which led him to predict the 1987 stock market crash. Whether it was foresight or good luck, he made a reported $30 million on that deal and became a regular on German talk shows.
He also dated a string of high-profile and beautiful women. The loveliest of all was Catherine Burda, a willowy heiress whom Kramer met in 1989 at a charity dinner.
They were both rich kids with rebellious streaks. Three days after meeting, she flew him in her private jet to Munich to meet her father, Franz Burda, who ran one of Europe's largest publishing empires. The meeting did not go well. In interviews for his memoir, Kramer recalls Franz, a giant of a man, screaming, "Are you that Thomas Kramer? If you ever touch my daughter, I'll destroy you! I'll destroy you!"
The couple defied Franz and jetted to New York a few days later to marry. It turned out Franz Burda wasn't bluffing. His newspapers began running stories about a purportedly shady real estate fund that Kramer had set up in East Germany just before reunification in 1990. The accusations were flimsy, but the bad press caused the bank to withdraw its line of credit. Kramer says his fund went bankrupt.
But if Kramer had made an enemy of one powerful German business magnate, he soon found a friend in another: Siegfried Otto, the wealthy patriarch of the clan that controlled Germany's biggest bank-note-printing company, Giesecke & Devrient. Siegfried was Catherine Burda's stepfather.
Outwardly, the elderly Otto was a respectable businessman. He'd earned his wealth by marrying Utta Devrient, the daughter of Giesecke & Devrient's owner, in 1943 while he was a major in the German army. When West Germany switched to the Deutschmark after the war, he turned Giesecke & Devrient into a global powerhouse that eventually printed currency for more than 50 countries.
In reality, though, Otto had been cheating the tax man for nearly 30 years, stashing 200 million Deutschmarks in Swiss banks. He saw a way out of his predicament in his new son-in-law.
Kramer, according to Swiss court documents, offered a simple solution: He'd take care of Siegfried's millions in Miami's real estate market. The younger German had just returned from his first trip to South Beach and was full of stories about a town slowly emerging from neglect. After a helicopter ride over Miami Beach, he was particularly bullish about the southern tip of the island, then a crime-ridden neighborhood that reminded him of Manhattan's Battery, which he saw transformed from a landfill into a luxury housing complex in the 1980s.
On May 8, 1992, the two German businessmen signed a confidential document, a gift annuity agreement that gave Kramer control over Otto's hidden funds, according to the Swiss court documents. Kramer, now 200 million Deutschmarks richer, embarked on a massive property-shopping spree, buying three lots on Star Island and 45 acres of land south of Fifth Street, often paying way over market value and usually in cash. Practically overnight, he became South Beach's biggest property owner.
"Everyone thought he was crazy," Saul Gross, then a city commissioner, told the New York Times earlier this year. "He wanted to buy whatever he could, and he was willing to pay whatever people were asking; he wasn't even negotiating."
Few have ever made a first impression quite like Thomas Kramer's grand debut in Miami Beach.
It came with the opening of his nightclub, Hell, on November 1, 1992, in the old Leonard's Hotel on Ocean Drive. "Come revel with the Devil," read the invitations. Kramer had spent $6 million to open a lavish nightclub featuring rooms dedicated to each of the seven deadly sins. However, rather than a glorious welcoming party, Kramer — who was dressed head to toe as Satan — prompted a mass walkout when journalists, many of whom were gay, overheard him telling the club's manager: "Don't let in any more faggots."
The opening of Hell, which closed two weeks later, was a PR disaster that left Kramer labeled a bigot — an image, though it was mostly untrue, that he could never shake even as he rose to new heights in South Beach. "He was seen as an arrogant man wearing a tux smoking a cigar telling us we were too ugly to get into his club," former Hell doorman Louis Canalis told New Times in a 1992 profile piece.
When not sabotaging his public image, Kramer spent the first half of the '90s cleaning up South of Fifth. His plans for the deteriorated neighborhood were as haphazard as his nightclub schemes. First he wanted to construct a replica of Portofino, the Italian fishing village. Next came plans for the world's largest gay hotel, followed by a $500 million casino backed by Donald Trump. Kramer blew millions on an initiative to bring gambling to South Florida that was defeated at the ballot box in November 1994. Finally, he settled on a less ambitious plan: a serious of high-rise luxury apartments, starting with Portofino Tower.
That project also nearly floundered. He'd made it to only the fourth floor of the planned 44-story building when he ran out of Otto's money. So in 1995, developer Jorge Pérez stepped in with financing. Kramer was a constant thorn in the developer's side, insisting at one point that the concrete balconies be replaced with glass ones, a $10 million overrun. Later, he decided the showers were all too small and ordered the architect to rip them out.
Kramer's personal life also threatened his empire. In February 1995, he was arrested in Zurich, Switzerland, after an old school friend accused him of raping his wife in the bathroom of a strip club. Kramer claimed the sex was consensual. The charges were dismissed by Swiss prosecutors because it was unclear whether the woman's injuries were inflicted by Kramer or by her angry spouse. Then, later that year, Catherine divorced him.
Amid that turmoil, Kramer's business empire reached new heights. Portofino opened in 1997 as a huge hit. The peach-and-turquoise building attracted deep-pocketed buyers from abroad who snapped up apartments for as much as $2.5 million. The same year, Kramer sold 13 acres of oceanfront land for $54 million, four times what he'd paid for it five years earlier. South Pointe was booming, and crazy Kramer wasn't looking so crazy anymore.
Soon after his divorce from Catherine, Kramer began dating Stephanie Phillips, a fashion model studying psychology at the University of Miami. Phillips wasn't a vacuous model. She was an avid outdoorswoman who enjoyed hiking in far-flung locations with Kramer.
But despite his newfound love, Kramer kept getting into trouble. In November 1997, while at dinner with Stephanie and Jorge Pérez at the South Miami restaurant Trattoria Sole, a fracas broke out. Owner Maurizio Farinelli said Kramer punched him when he told the developer to put out his cigar. A huge brawl erupted between his posse and the restaurant staff. By the time a bloodied Kramer stumbled out to be whisked away in an SUV, the restaurant had been trashed. Kramer was charged with misdemeanor assault. (He was later acquitted.)
Then, a month before the assault trial, Phillips committed suicide. She was 25. Kramer, who claimed he learned that Phillips was suffering from bipolar disorder only after she died, was inconsolable, comparing losing her to having his right arm cut off.
Her death seemed to spur Kramer to even greater heights of outrageous behavior. In April 1999, he was kicked off his own 42nd birthday cruise, a lavish affair that began in Tel Aviv. For Kramer, it ended the next day when the captain dumped him in Port Said, Egypt, after he'd started a fistfight with a waiter because the ship had run out of Opus One, a favorite California wine.
The next month, Kramer was arrested for rape again, this time by the London Metropolitan Police. One of Kramer's assistants, who was staying with him in his posh London mansion, accused him of sexually assaulting her in his bedroom. Kramer claimed it was an attempt by the secretary and her boyfriend to shake him down. The case was dismissed after his accuser withdrew the charges.
By the end of the 1990s, just as Kramer was reaching the pinnacle of his success as a real estate developer, his highly public personal life was spinning out of control.
I first met Thomas Kramer in November 2010 at Burger & Beer Joint on Bay Road and quickly realized the stories about his eccentricity weren't exaggerated. Before eating, he reached into a velvet bag and took out an elaborate collection of spices, which he carefully laid out on the table. He said he carried them everywhere he dined out.
I found Kramer charming and infuriating at once, not at all like the "Deutsche douchebag" of tabloid legend. He was a constantly moving ball of energy, like an overgrown 6-year-old with a bad case of ADD — an impression that would only strengthen over the 12 months I spent in his employ.
I'd gone to the restaurant hoping the entrepreneur could help me with a copyright lawsuit, and although he proved unhelpful, I did spend an entertaining evening slapping his hand under the table as he tried to put it up my skirt. He was fascinated to learn that I was working as a professional dominatrix. I was 19 pretending to be 21. After escaping to Miami Beach from my suburban Staten Island home in the summer of 2009, I'd found my way to a dungeon in Coral Gables. I later wrote a New Times cover story about the time I spent there and penned a regular column about BDSM, a body of work that helped me worm into Kramer's confidences. One freak bonding with another, as it were.
Before I left the burger joint, he claimed I reminded him of himself as a youngster. "If you're this crazy now, imagine what you are going to be when you are my age," he said. The dinner over, Kramer took a wad of cash from his pocket and tipped the waitress $200.
For two years afterward, we texted and kept in contact. Then, in March 2012, I saw he'd posted an ad on Facebook looking for a ghostwriter to pen his autobiography. I replied as a joke, but he instantly texted back asking me to come in for an interview. He hired me on the spot and told me to turn up for work the next day.
Like most of the other ten employees I met that first day at his waterfront mansion, I knew nothing of Kramer's money woes. Judging by the vast Mediterranean-style villa painted in Kramer's favorite color — bright red — he was every inch the outrageously wealthy entrepreneur he presented himself as on The Real Housewives of Miami.
My first task as his autobiographer was piecing together what he had been up to in the new millennium. "A ten-year downward spiral" is how Kramer described the period in his official biography on his website. Planned projects, such as SoBe Towers in Rio de Janeiro and a mega-development in Riyadh, Saudi Arabia, never made it further than the drawing board. Vast sums were funding his extravagant lifestyle, but almost nothing was coming in.
By 2010, Kramer had grown tired of all the partying and jetted to Mexico to undergo ibogaine treatment — a controversial procedure in which doctors spent two weeks pumping him full of hallucinogenic drugs. He said it had worked: He stopped drinking, claiming that even the slightest smell of alcohol made him ill. Now clean and sober, he wanted to get back into the real estate development business, but no one wanted to work with him because of his scandal-scarred reputation.
So he'd been trying to market his "brand" instead. First came TK Fashion, a line of casual wear that sold very few items. A planned cable cooking show called Totally Kooked, in which Kramer would make dinner for ten celebrity guests, also fizzled. In 2011, he set up TK Global Realty, which was in business for about a month before the realtors quit in a dispute over commissions.
Plowing through a pile of manuscripts — the efforts of the dozen or so previous writers who'd quickly been fired — I soon discovered that Kramer, who referred to himself as a "visionary developer," was prone to exaggerating and taking credit for practically every luxury high-rise apartment building in South of Fifth. In truth, he had little to do with any work other than Portofino Tower and the Yacht Club at Portofino, a 33-story building he opened two years later.
"Thomas was not really a developer. He was a trader, and so he partnered with or sold to developers who executed the projects," Neisen Kasdin, who was Miami Beach's mayor from 1997 to 2001, recently told New Times.
Kramer hadn't developed anything in Miami Beach on the scale of Portofino since it opened in 1997. The more I researched, the more I thought of Kramer as a male version of Norma Desmond in Sunset Boulevard: a onetime big shot whose glory days were over. I began to see myself, meanwhile, as William Holden's character, Joe Gillis, a hack inexorably drawn into Kramer's glamorous fantasy world, where he was convinced his big comeback was right around the corner.
First, however, Kramer needed a face-lift. In May 2012, he scheduled an appointment with his friend, plastic surgeon Lenny Hochstein, Miami's self-styled "Boob God." Kramer wanted someone to videotape the procedure, and because I was the least squeamish person in the office, he nominated me. I held Kramer's hand as he went under the anesthesia and filmed in rapt horror for six hours as Hochstein separated the skin from Kramer's face. The smell of burning flesh turned my stomach. When Kramer woke, the first thing he asked me was how the video turned out.
As he recuperated, the impulsive businessman decided it was a brilliant idea to upload the video to YouTube, claiming it would somehow enhance his brand. The whole office protested, but he disregarded our advice. (Fortunately, the video was removed a couple of days later.)
Surreal incidents such as that one made me feel like I was working for a different company every few weeks. One month, I worked for a firm selling "not just real estate, but lifestyle." The next, bored with luxury sales, the boss decided to get into app development. "The future is online!" he would bark enthusiastically. Never mind that he had trouble operating his iPhone.
Kramer was also obsessed with starting a reality TV show. His guest appearances on The Real Housewives of Miami — where last season he kicked out two of the show's cast members for bickering at his dinner table — had whetted his appetite, but he wasn't having much luck drumming up interest. "You don't make me any money — at least get me a fucking show!" he would yell at his staff.
A friend of mine knew people at NBC, so she set up a meeting at Kramer's mansion with a high-ranking executive producer. But in the middle of the meeting, Kramer began weeping while explaining why he was "misunderstood." I never heard from the network again. Apparently, he was too unhinged even for reality TV.
Kramer's red-faced rages, meanwhile, were frightening. The most insignificant detail would set him off: from an email that wasn't typed in his favorite font (Helvetica) to a wrong-colored marker on the office whiteboards. During these episodes, it was as if he would enter into an altered state. Afterward, he would forget what he had just said and seemed genuinely surprised that his staff was upset.
Not unexpectedly, employee turnover was high. During the year I worked on Star Island, I saw more than 30 people come and go. Nevertheless, if you could look past the outbursts, Kramer could be a cool boss. "My house is your house," he often said, when he wasn't calling us all "baby lions," his affectionate term. Any employees who needed a place to live were welcome to stay rent-free in one of the guest houses, and Kramer encouraged his staff to grab a bottle of wine from his fridge and chill by his pool. We would roll our eyes and call him our "wacky German mother" when he cavorted around the kitchen making us lunch while wearing an apron with a huge black dildo embroidered on it.
What we didn't know, though, was that behind the scenes, Kramer's financial house of cards was close to tumbling down.
The judgment came January 13, nearly 21 years after Siegfried Otto had entrusted Kramer with 200 million Deutschmarks. The Swiss Federal Tribunal, the nation's highest court, was unequivocal: Kramer must now pay Otto's descendants the equivalent of $187 million.
It was Kramer's entire fortune and more — a stunning result that came from nearly two decades of legal fighting in Europe that Kramer, amazingly, had somehow kept secret from nearly everyone who knew him in Miami.
Kramer's troubles, it turned out, began back in 1993, only a year after Otto had entrusted him with his money. That's when Otto got cold feet, confessed to German authorities that he'd hidden his untaxed fortune with Kramer, and then struck a confidential deal to avoid jail time by repaying 100 million Deutschmarks (about $71.4 million). That agreement was leaked to the German press two years later, forcing Otto to resign from day-to-day operations at Giesecke & Devrient.
What was less public was Otto's legal action after settling that massive tax bill: He asked Kramer to pay back the money. Problem was, Kramer had already spent about $100 million on land in Miami Beach. So, according to Swiss court filings, Kramer returned just $20 million and refused to refund the rest. After negotiations between their lawyers failed, Kramer filed a preemptive lawsuit in July 1996 with the circuit court of Zurich claiming he was "maliciously misled during contract negotiations" with Otto in 1992 and didn't owe him anything.
Otto countersued the same year, demanding the return of all his funds plus interest and an accounting of how Kramer had spent the millions. The next year, the Swiss courts dismissed Kramer's lawsuit and sided with Otto. Whether the money that Otto gave to Kramer constituted a loan, as Otto maintained, or a gift, as Kramer claims to this day, became the basis of a string of unsuccessful appeals that would consume Kramer behind the scenes for the next 15 years.
When the 82-year-old Otto died after a series of strokes in 1997, his surviving daughters inherited their father's business and continued his lawsuit. Verena von Mitschke-Collande, the current owner of Giesecke & Devrient, and Claudia Miller-Otto, a philanthropist and abstract painter who lives in Key West, weren't willing to forgive such a colossal debt. (Both sisters declined to be interviewed for this story.)
On January 9, 2003, the Zurich High Court dismissed Kramer's appeal. To ensure that the Swiss judgment stuck, the heirs took their case to Miami. On April 13, 2007, Miami-Dade County Circuit Court decided the ruling was "an enforceable judgment of this State of Florida." The Otto sisters also targeted Kramer's London assets. A British judge froze $10 million of Kramer's property in 2007.
Despite losses on two continents, Kramer refused to give up. Within months of the Florida verdict, Kramer's lawyers petitioned the Florida Supreme Court to strike it down. In August 2009, the court denied Kramer's petition for review.
Finally, this past January, the legal drama reached its long-delayed climax when the Swiss Federal Tribunal ruled Kramer's final appeal was "without merit" and told him it was time to pay up. The Otto clan had at last prevailed against the man who'd taken their millions to Miami.
"It wasn't a matter of principle," said a source connected to the lawsuit, who requested anonymity because of ties to the Otto family. "It was definitely over the money. Two hundred million dollars isn't loose pocket change."
In the weeks after the news, Kramer's two decades of dizzying excess quickly evaporated as he scrambled to meet the Swiss judgment.
I spent February, the month before the teary meeting with his staff, covered in paper dust in a small side room with two shredders while helping Kramer eradicate 20 years of his life. Boxes of documents — party invitations from the 1990s, receipts for dinners from fancy restaurants, photographs of Portofino Tower — reached almost to the ceiling. I shredded so much that sanitation workers complained about having to haul it all away. Kramer would occasionally pop in. Humiliation welled up in his eyes as he watched his empire being slowly dismantled.
As the day of his departure to Pakistan drew closer, he became more depressed. The usual stream of gold diggers that flowed into the mansion now slowed to a trickle, though the occasional bimbo sheepishly clad in Kramer's custom-made shirts reading "Good Girls Go to Heaven, Bad Girls Go to 5 Star Island" would wander around the grounds. I genuinely feared that Kramer might harm himself. The death of his beloved father, Willi, in 2012 had forced him to confront his own mortality, and in the wake of the Swiss decision, he began to talk openly about taking his own life. I worried that one morning I might hear a shot coming from the walk-in safe upstairs where he stored his guns.
But Kramer soon announced he'd found one last chance to salvage his career: He was pinning all his hopes on Malik Riaz. The night before he left for Karachi, Pakistan, 200 friends gathered at his mansion to drink champagne and wish him bon voyage. "It's like being present at my own funeral," he told me.
The down-on-his-luck businessman had reason to be apprehensive. His plan reeked of desperation: Riaz, a notorious property tycoon, wanted to partner with him to build Safe Island City, which will supposedly boast the world's tallest building and the world's largest shopping center — all on the outskirts of Karachi, one of the world's most dangerous cities.
Kramer had met Riaz in Pakistan in 2010 through a mutual friend in Islamabad. The two struck up a relationship, and after a real estate company owned by the Abu Dhabi royal family backed out of a deal to finance Safe Island City in February, Riaz asked Kramer to come aboard. (Riaz didn't respond to requests from New Times through an intermediary for an interview.)
Riaz, who likes to portray himself as Sultana Daku — a Pakistani version of Robin Hood — has been publicly accused (though never convicted) of crimes ranging from forgery and extortion to kidnapping and murder. Last May, a fellow land developer named Dr. Shafiqur Rehman filed a petition with the Supreme Court of Pakistan charging that Riaz, with help from the police, had tried to frame him for the killing of one of Riaz's bodyguards in August 2008. He also claimed Riaz was responsible for the deaths of Lt. Gen. Imtiaz Hussain and Dr. Mansoor Janjua in a dispute over a land deal in Lahore. (Those claims, which Riaz has denied, are pending in court.)
Critics, though, say Riaz has skirted convictions only because he's too powerful. In June 2012, for instance, investigators tried to arrest Riaz in Islamabad on the orders of a special anti-corruption court, but the local cops prevented the tycoon from being taken into custody.
According to Amir Mateen, the reporter for the Spokesman, the Supreme Court of Pakistan has heard hundreds of cases alleging criminal misconduct by Riaz's company Bahria Township, "mostly involving land-grabbing where [Riaz's] goons forcibly took away land from poor people to build houses, some of which cost as high as 220 million rupees — the Sultana Daku in reverse."
Kramer was willing to ignore those dangers. He had no stable income. The businesses he ran didn't bring in much money, and his Star Island mansion was on the market for $55 million, but without any serious offers in sight. The Pakistani project could either be a glorious final coup for the investor or serious trouble.
"The deal better go through," Kramer told me in the kitchen during his going-away gala. "It's either that or a bullet to the head."
Just two days after leaving Miami on March 12, Kramer signed a memorandum of understanding with Riaz while surrounded by flashing cameras in Karachi. Kramer told a roomful of journalists that he "is spearheading a syndicate that is planning on investing $20 billion over the next five to ten years."
Where would Kramer get $20 billion for such a risky project? Already, Pakistani regulatory authorities have fined Riaz's company for fraudulent advertising and for illegally receiving public money in advance for a project that is still a long way from breaking ground.
Still, in a way, the partnership makes sense, because Riaz wants a sheen of Western backing and Kramer needs his name on a real project. "I think the deal is mutually beneficial," Mateen says. "Malik Riaz wants to use the name of an investor who turned around part of Miami, and Kramer will either make money if the project goes well without spending much or still gets compensated in some ways."
Kramer briefly flew back to Miami Beach in early May to oversee the auction of his mansion's contents. Buyers could bid on everything: his taxidermied German shepherd, a portrait of Joseph Stalin that once hung in the cigar room, a statue of Ben Franklin that used to sit in the courtyard. How much did he make? Kramer won't say.
Indeed, he refused to comment for this story when reached by Skype from the Cannes Film Festival last week.
"I don't want to talk about my past. You fucking worked for me for a year — you should know all this!" he yelled. Then he softened his tone. "Bye, love you. We'll talk when the article comes out."
The mansion, home to two decades of bacchanals, now sits empty awaiting a buyer. Meanwhile, Kramer's legacy — the luxury real estate market he helped pioneer in South Beach — is again surging with buyers from Russia and Brazil snapping up apartments. The price of land in SoFi has increased tenfold since Kramer began buying properties in the neighborhood.
Anyone in danger of forgetting who he was and what he meant to South Beach in its '90s heyday has only to look at the skyline of contemporary Miami Beach, where Portofino still looms as the tallest building in South Beach, a monument to one man's arrogance and perseverance.
As party promoter turned property developer Michael Capponi says: "His initial vision of South of Fifth Street helped reshape South Beach into what it is today."
See: http://www.miaminewtimes.com/2013-05-23/news/thomas-kramer-south-beach-portofino/full/
14/05/2013:
Bahria Town, DHA issued notice in land grabbing case
By Hasnaat Malik ISLAMABAD: The Supreme Court has issued a notice to Bahria Town Chief Executive Officer Ali Riaz Malik and the Defence Housing Authority (DHA) Rawalpindi secretary asking for their response about allegations that around 1,416 acres of lands had been encroached by both the housing schemes, owned by the Forest Department, and thus causing a loss of billions to the Punjab government.
A three-member bench of the apex court, headed by Chief Justice Iftikhar Muhammad Chaudhry, has also directed Rawalpindi District Coordination Officer Rashid Mehmood to point out the names of the officers of the Islamabad administration and the Rangers who had intercepted an attempt by the Forest Department to demarcate the lands in June 2011.
The court is hearing a suo motu case on an application by Malik Muhammad Shafi, highlighting destruction of forests and illegal acquisition of land by the Bahria Town and the DHA administrations.
The dispute at hand was the illegal occupation of 684 acres in Rakh Takht Pari and 732.5 acres in Lohi Bheer forests by Bahria Town.
Takhat Pari is located six kilometres off Rawalpindi near GT Road with a total area of 2,210 acres. The land was originally transferred to the Forest Department.
Almost the entire area of Rakh Takht Pari consists of natural shrub forest, mainly dominated by Phulai and Sanatha bushes, according to a report submitted by the Punjab government.
Even the adjoining areas have wild growth of bushes. Neither Takht Pari forest nor private holdings (mostly shamlat) were previously identified or earmarked.
During the hearing, DCO Rashid Mehmood and Divisional Forest Officer (South) Ijaz Ahmed told the court that on the behest of Bahria Town, the police force from the Islamabad Capital Territory as well as the Rangers had thwarted an attempt by the Forest Department to demarcate the land in the Takht Pari on September 7, 2011, by imposing Section 145 of the Pakistan Penal Code (PPC), which restricts unlawful assembly.
The Bahria Town management also kept hostage the team members of the Forest Department for a couple of hours, they said.
Additional Advocate General Jawad Hassan, however, told the court that the forest officers who were also members of the demarcation committee constituted by the Rawalpindi commissioner concluded the demarcation by employing GPS technology and the old maps of the Survey of Pakistan.
The Bahria Town management raised construction on the encroached lands by developing roads and residential areas in the Takht Pari area knowing well that the land belongs to the Forest Department, DFO Ijaz Ahmed said.
The DCO recalled that the Rawalpindi Board of Revenue had already cancelled mutation entries of these lands in favour of Bahria Town on September 10, 2012.
He also informed the court that Tehsildar (collector) Noor Zaman had led a team to demarcate the forest lands, but was intercepted by the police and the Rangers, and was fully aware of the identity of the responsible officers of the law enforcement agencies.
The court asked the DCO to get the names of the officers from the tehsildar and submit it to the registrar of the Supreme Court. The registrar will then issue notices to all the officers for their appearance before the court on May 20.
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C05%5C14%5Cstory_14-5-2013_pg7_7
Forest land occupation: Bahria Town chief asked to clarify allegations
ISLAMABAD, May 13: Bahria Town chief executive officer Ali Riaz Malik will have to appear before the Supreme Court on May 20 to deny or accept the charges of encroaching around 1,416 acres in 2005 owned by the forest department Rawalpindi, causing a loss of billions of rupees to the Punjab government.
At the same time, a three-judge Supreme Court bench headed by Chief Justice Iftikhar Mohammad Chaudhry has asked the secretary of the Defence Housing Authority (DHA) to clarify the allegations that the authority had forcibly acquired privately-owned land in Rawalpindi in collusion with the revenue officials for the development of the housing authority.
The Supreme Court directed District Coordinator Officer Rawalpindi Rashid Mehmood to point out the names of the officers of the Islamabad administration and the Rangers who had foiled an attempt by the forest department to demarcate the land in June 2011.
On a suo motu, the apex court initiated hearing of an application by Malik Mohammad Shafi, highlighting the destruction of the forest and illegal acquisition of the land by the Bahria Town and the DHA.
The dispute related to the alleged occupation of 684 acres in Rakh Takht Pari and 732.5 acres in Loi Bher forests by the Bahria Town.
Takhat Pari is six kilometres away from the Rawalpindi city near G. T. Road and spreads over 2,210 acres. The land was originally transferred to the forest department on August 4, 1856.
Almost the entire area of Rakh Takht Pari comprises natural shrub forest mainly dominated by Phulai and Sanatha bushes, said a report submitted by the Punjab government to the court.
Even the adjoining areas have wild growth of bushes. Neither Takht Pari forests nor private holdings (mostly shamlat) previously were identified or earmarked.
The newly-appointed DCO, Rashid Mehmood, and Divisional Forest Officer (south) Ijaz Ahmed informed the Supreme Court that at the behest of the Bahria Town, police from the Islamabad and Rangers had thwarted an attempt by the forest department to demarcate the land in the Takht Pari on September 7, 2011, by imposing Section 145 of the PPC, which restricts unlawful assembly. The Bahria Town management also kept hostage the team members of the forest department for a couple of hours.
Additional Advocate General Jawad Hassan, however, told the court that the forest officers, who were also members of the demarcation committee constituted by the commissioner Rawalpindi, had concluded the demarcation by employing GPS technology and the old maps of the Survey of Pakistan.
The Bahria Town management raised constructions on the encroached land by developing roads and residential areas in the Takht Pari area knowing well that the land belonged to the forest department, he added.
The DCO recalled that the Board of Revenue Rawalpindi had already cancelled mutation entries of these lands in favour of the Bahria Town on September 10, 2012.
He informed the court that tehsildar (collector) Noor Zaman, who had led the team to demarcate the forest land, was intercepted by the police and the Rangers. He said the tehsildar knew the identity of the responsible officials of the law enforcing agencies.
The bench directed the DCO to get the names of the officers of the law enforcing agencies from the tehsildar and submit it to the registrar of the apex court.
The registrar will then issue notices to all the officers for appearance before the court on May 20.
See: http://dawn.com/2013/05/14/forest-land-occupation-bahria-town-chief-asked-to-clarify-allegations/
11/05/2013: On election day this gem appeared in the papers:
08/05/2013
Civic agency fails to reclaim prime land lost to DHA
ISLAMABAD, May 7: For the last six years the civic agency of Islamabad has failed to reclaim the prime land along Islamabad Expressway that was gradually taken over by the Defence Housing Authority (DHA) and sold out.
According to senior officials in the Capital Development Authority (CDA), in 2005 the DHA started taking over the prime land in Humak, Sihala and Rawat, which was acquired by the civic agency back in 1963-65 to develop the Islamabad Expressway and an industrial area.
The land was then sold to Bahria Town. It was not until sometimes later in 2006-07 when villagers of these localities registered complaints with the CDA against the occupation.
However, it was too late by the time the CDA started pursuing the matter. Documents available with Dawn show how the DHA then committed to the civic agency in 2006-07 that it would compensate it by allotting about 700 kanals of developed 500 square-yard plots each against nearly 2,500 kanals of undeveloped land it had taken over.
But how the land exchange deal between the two authorities was reached in 2006-07 was unclear because there was no provision in the
CDA by-laws to share land.
This was why senior officials in the civic agency saw a flaw right there. “That was their trick. This is millions of rupees worth prime property along the highway. Instead of buying the land, they gave us land in exchange,” said a senior official in the CDA directorate of land.
The reason officials found the deal dodgy was the fact that the 500 square-yard plots that the DHA had offered in exchange at its Phase II Extension project only existed on papers.
“The Phase II extension project of DHA has been shelved. The files are worthless because the property is as undeveloped today as it was six or seven years back,” a source said, explaining how the land acquired by the CDA was worth lots more than the value of the 700-plus kanals offered by the DHA in exchange.
The documents also showed how the authoritative DHA wanted to compensate the Capital Development Authority at the same rate the lands were acquired back in 1963 and 1965 instead of the current market rate.
Under directions from the chief justice of Pakistan, who had taken notice of the case, a sessions judge conducted an inquiry into the matter in January, 2010.
The inquiry officer raised objections to the values of properties being exchanged and the fact that the DHA had decided to transfer less plots to the CDA than what had actually being agreed upon.
Worst still, the CDA failed to follow up on the offer given by the DHA. “We lost key properties in 2006-07. And there has been no correspondence since then by CDA with DHA. The Capital Development Authority had decided that the 700 plus kanals offered by the DHA could be auctioned to generate revenues,” explained an official in the CDA planning wing.
The Cabinet Division, which overlooks and supervises operations of the CDA, described the delay in pursuing the case with Defence Housing Authority since last six years as, ‘Glaring act of fraud, mischief, daytime robbery at CDA, causing severe loss to the national exchequer’.
In a recent Board meeting, the CDA chairman directed the member estate and member planning, director estate management and the directorate land to confirm the status and location of the plots allocated by the Defence Housing Authority.
“We are trying to ascertain the status of the case,” said Tahir Shahbaz, the CDA chairman.
Elaborating on why the CDA was revisiting the case, he said: “It was a fraudulent deal from the start. They took prime property from the CDA and gave us land that will probably fetch the authority peanuts.”
The case had been referred to the planning wing to contact the DHA through the director land survey for verification of the site and status of the plots to prepare a comprehensive report.
The documents show how in Sihala the CDA had acquired more than 530 acres in 1963 and 1965.
In Rawat, the total land measuring more than 135 acres was acquired for Islamabad Highway in 1963. And in Humak, 768 acres was acquired to establish an industrial area.
When contacted, the public relations section of the DHA declined to comment.
See: http://dawn.com/2013/05/08/civic-agency-fails-to-reclaim-prime-land-lost-to-dha/
06/05/2013
SC resumes hearing in Bahria Town CNIC scandal today
ISLAMABAD - The Supreme Court will today (Thursday) resume the hearing into a suo motu action taken against issuance of computerised national identity cards (CNICs) at the instance of Bahria Town Chief Executive Malik Riaz to 20,000 employees of Bahria Town by changing their temporary addresses to influence the election process in Rawalpindi’s NA-52constituency.
The National Database and Registration Authority (NADRA) chairman would appear on notice. On August 19, the court had directed NADRA to close its office located in or around the Bahria Town. The court will examine the reply by NADRA’s counsel, Raza Kazim. At the last hearing, Kazim had stated that NADRA was an institution and was not concerned with any influential personality, whether he was the Bahria Town chief executive or Opposition Leader in the National Assembly Nisar Ali Khan. The applicant, Muhammad Hashmi, had told the court that 4,100 CNICs had so far been issued.The court was informed that the temporary addresses of these cards were being replaced with the addresses falling in NA-52 constituency to make the holders voters of the constituency. It was told that the government had set up a NADRA office in the courtyard of Bahria Town, so that the Bahria Town employees could get their cards easily and influence the elections of NA-52. However, now the NADRA office was shifted outside the Bahria Town office, which was called Swan Town.NADRA Chief Administrator Tahir Akram had denied the allegation.Nisar had also expressed concerns over the issue and said it was part of a scheme to defeat him in the next general elections.
See: http://www.pakistantoday.com.pk/2011/09/15/news/national/sc-resumes-hearing-in-bahria-town-cnic-scandal-today/
02/05/2013
Bahria administration facing double trouble
ISLAMABAD:It seems that steps taken by the administration of Bahria Enclave for making their society a successful venture may come under tough scrutiny in the coming days as they are facing two separate probes regarding the project.First the judicial commission formed by the Islamabad High Court (IHC) to probe CDA irregularities investigated the issue related to construction of double road leading towards Bahria Enclave and made some recommendations in this regard which will be taken up by the court on May 3rd. Secondly the Senate Standing Committee on Cabinet Division also took notice of the considerable increase in the rates of plots in Bahria Enclave during a short span of time and sought a reply from the Bahria management in this regard.
It shows the confidence of Bahria Town administration about changing their illegal moves into legal acts without too much fuss was that the administration constructed a double road to ensure easy access to Bahria Enclave without the approval of CDA and allegedly by encroaching upon the CDA land. Interestingly, after the lapse of several of months they easily succeeded in getting the approval for the said road
This also showed the negligence of CDA officials who remained silent over the construction of road for a period of one year.
The report said that Bahria Town constructed a double road on CDA land without obtaining permission of the civic body in 2011. The authority accorded approval later in 2012.
CDA Deputy Director Enforcement Shafi Muhammad Marwat had submitted before the commission that the management of Bahria Enclave had taken 300 Kanals of CDA land for the construction of a road and 900 Kanals for construction of their offices. He said that, with regards to the problem of double road leading towards Bahria Enclave, different wings of CDA have been corresponding with each other and have been shifting the burden on to each other. He said that no one could dare to direct the enforcement wing to take over possession of the encroached area.
The commission, in its report, recommended that joint demarcation should be carried out of the place in presence of Bahria Town, ICT administration and CDA.
Sources in the CDA told The Spokesman that the demarcation may not go in favor of Bahria Town and if it comes true, they will have to face a major blow in the form of leaving the land or paying high compensation to the affectees. They said that the demarcation of the land could not be carried out earlier as an individual of Kurri village filed a civil suit against the CDA after which the court ordered to maintain status quo of the land. It is believed that the Bahria administration has asked someone to file the case as the petitioner has not cited Bahria Town as a respondent in the case. The commission found that “from the oral and documentary evidence so far collected, it is apparent on the face of it that access to Bahria Enclave was intervened by Kuri Village, a property belonging to the CDA.”
The commission recommended disciplinary action against the officials of CDA who remained inactive during construction of the road up till the time it was accorded approval. On the other hand, in its last meeting, the Senate standing committee sought a reply from the Bahria Enclave administration as to why they made a considerable increase in the prices of plots. At the time of its launch, Bahria Enclave offered a plot of one Kanal for Rs6 million whereas the rate has now been increased to 8.5 million which compelled the committee to take notice of the situation. The committee will also take up the matter in its next meeting.
See: http://thespokesman.pk/index.php/history/item/4536-bahria-administration-facing-double-trouble
30/04/2013
DHA defending scammers?
The Defence Housing Authority (DHA) is reluctant to provide land record of Evacuee Trust Property Board (ETPB) to FIA, which is investigating a staggering land scam told sources in the ETPB.According to sources, investigators have issued notices to the DHA management to provide record but no avail. The record collected from the ETPB revealed that there was 4,259-Kanals and 11-marlas land at Village Dera Chahal, Motasinghwala and Lider, Tehsil Lahore Cantt and owned by ETPB. Village-wise land detail is as follows: Dera Chahal 244-K & 15-M, Motasinghwala 862-K & 1-M and Lidher1152-K & 15-M.During initial probe of FIA, investigators claimed that due to the absence of complete record of DHA, it was not possible to give conclusive recommendations.However, as per available record from ETPB, approval granted by the Board for the exchange of land without considering terms and conditions etc. opens scope and authority for the Chairman ETPB to be probed further. The plea of members of the board is yet to be recorded for which formal notices have been issued to them.The Probe report says that the Federal Government also granted approval without determining terms and conditions i.e total land, location, survey/price report etc. which also needs thorough probe as the plea of the concerned officers/official of Ministry of Minorities (now defunct) is yet to be recorded.Apparently, it seems that the Draft Agreement should have been forwarded to the Controlling Ministry/Ministry of Law & Justice Division for vetting (DHA’s version of the concerned Ministry is yet to be recorded).ET Land situated at Dera Chahal, Motasinghwala and Mauza Lidher has agricultural status in books but due to tremendous increase in population and development by DHA Lahore, the status of the said land has become urban property due to the fact that it is surrounded by developed scheme of DHA, Lahore and others. This matter is also required to be probed whether any commission/kick backs /personal gains have been obtained or not.FIA probe report revealed that registry expenses amounting to Rs39,189,600 initially borne by the ETPB instead of DHA and subsequently reimbursed to ETPB by DHA after period of one and half month needs to be probed. Similarly expenditures incurred by DHA Lahore as per their claim for vacation of land from the land grabbers/occupants also needs thorough probe.Record pertaining to the allegations of illegal allotments of plot to officers/officials of Ministry of Minorities has been obtained which is under scrutiny, report further maintained. As per record regarding illegal leasing of Gurdwara Land situated at Ghas Mandi, Sahiwal was obtained. Scrutiny of the same revealed that Property No.518-519/B-IV measuring to 1-K & 13-M belongs to Hindu Mat Singh Saba Mandir. The inquiry is under probe. FIA intends to get the said land evaluated through a reliable, credible and reputable Evaluator i.e NFSPAK etc. in order to determine the actual price of the said land at the relevant time. Letters/Notices have been issued to Defence Housing Authority Lahore for provision of the requisite record which is still awaited despite issuance of reminders. The remaining large amount of record is yet to be collected from DHA, FTPB and Revenue Office of concerned circles to reach at a just conclusion, said an investigator seeking anonymity.
See: http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/lahore/29-Apr-2013/dha-defending-scammers
29/04/2013: Some news from Karachi
KPT, PQA sold land worth Rs88 bn to DHA for only Rs15m
KARACHI: The Supreme Court (SC) during the hearing of the suo moto notice on the Karachi law and order case, came across the biggest land scam in the history of Pakistan.
It was discovered that the Karachi Port Trust (KPT) and Port Qasim Authority (PQA) sold 1,600 acres of precious land on the Karachi coast to the Defence Housing Authority (DHA) at the rate of Rs2 and Rs2.5 per square metre.
The Sindh government claimed ownership of the land and said that both the federal institutions had no right to dispose of the land. The Sindh government, which did not receive a single penny in the bargain, came to realise this scam when the SC asked questions about the land and sought explanation as to why the KPT and PQA disposed of the said land. This helped many Sindh government departments, particularly the custodian of state lands, i.e. the Board of Revenue, to set a historic and ignoble record of incompetence. The land is worth not billions but trillions of rupees. Both the federal institutions received a sum of a mere Rs15 million as the price of the 1,600 acres of land. With this paltry amount, it is difficult to purchase even a 500 square yards plot in DHA.
The land was disposed of in 2003 and 2005. If calculated at the rate of Rs10,000 per sq yard the minimum price prevalent at that time, 8,826,280 square yards (1,600 acres) of land could fetch more than Rs88 billion. Now this land is worth trillions of rupees. It may be kept in view that the SC, while hearing the suo moto case No 2011/16, especially concentrated on the issue of the occupation of the land of the Sindh government and occasionally asked the Sindh government to furnish details of the land which had been allotted in ten years, or which had been grabbed by different institutions, persons, groups unlawfully. In this respect, the SC issued a number of orders too.
On April 14, 2013 the SC passed an order that it should be explained under what law the KPT and PQA disposed of this land. This scandal had sprung up after the SC order.
The case has been fixed for the next hearing on May 5, 2013 when the Sindh government, KPT and PQA will submit their explanations. It is expected that many eye-opening secrets will be unravelled during this hearing.
To take stock of the situation after the SC orders, a meeting was held in the office of Deputy Commissioner (South). The representatives of KPT and PQA did not bother to attend the meeting although they were invited. Director Military Land, Defence Housing Authority, told the meeting that DHA purchased 881 acres of land from KPT. On this land, Phase 8, Phase 7 (Extension), and Phase 6 of DHA have been developed.
It was further revealed that DHA purchased 736 acres from the PQA on which part of Phase 8 and Phase 8-E has been established. Some land has been reserved for waterfront development, whereas 282 acres of land was purchased from the Sindh government. It was decided in the meeting that the KPT and PQA would be asked under which law they leased out this land for 99 years.
The documents presented in the meeting have captured the imagination of legal and constitutional experts. The land given to DHA has neither been classified, nor is there any mention of it in the Sindh land record for the reason that this land has been reclaimed from the sea. The surprising thing is that the registry of both the lease-deed documents was done by the concerned sub-registrar, whereas the sub-registrars are employees of the revenue department. For the transfer of this land, they did not bother to check that there is no NoC from any office of the Board of Revenue nor is there any record of these pieces of land in the Board of Revenue. The registry of one deed is passed by the sub-registrar Kemari Town, while the other deed is signed by the sub-registrar, sub-division of T Division.
The SC has sought explanations from both the federal institutions under what law they sold the land. In the lease deed, the PQA has referred to the gazette notification No PD: 1973/2/1, dated 31 May 1974 (issued on June 21 1974). According to this notification, the federal Ministry of Ports and Shipping transferred the land within 50 yards of the high water so that it could manage the affairs of the port in a better manner. Nowhere in this notification was it written that the PQA could sell this land for commercial purposes.
How can the affairs of the port the managed properly after selling the land to DHA is a big question. How can the KPT organise its affairs in a better way by selling its land to the DHA?
The KPT has nowhere mentioned under which law it claims to be the owner of the land. In the lease deed, a clause has been added that 3 percent of the 881 acres of KPT land (i.e. 127,900 square yards) will be given to DHA and 324 plots of around 400 sq yards each will be allotted to KPT officers and the names of the officers were to be given by the KPT administration. As per the lease deed these plots have been handed over to KPT officers. What have government earned out of this deal? How far have the affairs of KPT improved through this sale? It is believed that people in PQA too have taken the plots.
How much more would the bigwigs of KPT and PQA have earned selling the land at throwaway prices? The SC can order an investigation into this aspect too.
It should be kept in mind that the KPT sold the land to DHA at the rate of Rs2.50 per square yard and received only a paltry amount of Rs8.9 million. This lease was registered on August 2 2003. In other words, 356,606 square yards of land was sold for Rs8.913 million. At that time, if the land had been sold at Rs10,000 per square yard, it would have fetched Rs42.46 billion. Similarly, PQA sold to DHA 736 acres of land at the rate of Rs2 per square yard and received Rs7 million. This lease was completed on August 21 2003. This land if calculated at the rate of Rs10,000 per square yard, would have fetched Rs35.62 billion. In these areas, some plots are fetching a price of Rs1 million per square yard while in fact they were all sold for Rs15 million. Thus land worth trillions was sold for a song.
On the other hand, the Sindh government will file a petition in the SC that the KPT and PQA sold the land unlawfully, as the land the sea leaves behind is the property of the Sindh government in accordance with the provisions of Article 172 of the Constitution and Article 50 of the Sindh Land Revenue Act.
Sources in the Sindh government have confided to this correspondent that they would pray to the Supreme Court to order legal proceedings against the administration of the KPT and PQA and the officers of the Revenue Department, Sindh who were responsible, so that those who have pocketed billions through shady means could be brought to book.
See: http://www.thenews.com.pk/Todays-News-13-22528-KPT-PQA-sold-land-worth-Rs88-bn-to-DHA-for-only-Rs15m
25/04/2013:
Malik Riaz gets another bureaucratic blow
ISLAMABAD: One of the top bureaucratic emissaries of property tycoon Malik Riaz has finally been asked to leave Commissioner Islamabad’s charge and report to the finance ministry. One of Malik’s second lieutenants, IG Islamabad Bani Amin has so far been clinging on to his job despite orders of PM House and the rage of the Islamabad High Court. Commissioner Islamabad Tariq Peerzada, who almost celebrated his coveted posting as chairman CDA in last week of March, was sent packing by the courts. Due to his connections with the property tycoon, Peerzada was given a surprise by the caretaker PM as he was informed only after issuing the transfer notification. Mir Hazar Khan Khoso had to cut a sorry figure when he failed to transfer IG Islamabad a few weeks back even after issuing orders and appointing another officer in his place. Therefore, Peerzada was not given any chance to maneuver this time, informed sources. Malik Riaz had to digest the transfer of all his major SHOs from Islamabad’s urban and rural areas’ police stations in the last week. Sources believe that with the transfer of Peerzada from the office of commissioner Islamabad, Malik had to call off many of his designed land occupations. “This situation might remain in place till the parameters of a new set up emerge in the federal capital and the country,” revealed sources working the Bahria famed magnate. Since the departure of the Peoples’ Party government in March this year, every move from Malik Riaz to maneuver with the federal capital’s bureaucracy and police officials seems to have hit astonewall. Sources claim that Malik Riaz believes that all these hurdles are not the making of caretakers but are orchestrated by those judicial centers who feel betrayed by him. Therefore, he is hoping that no matter who grabs power in the center or provinces, his nexus with the DHA people will ultimately salvage him from any huge wrap ups. “Fortune seems to have gone on vacations for Malik Riaz,” commented one of his close associates, seeking anonymity. His purported US $ 45 billion adventure with Abu Dhabi group and then with a Hollywood playboy have all fallen apart, he added. With one mainstay of Malik gone, sources close to Establishment Division believe that fate of IG Islamabad, Bani Amin, would have to be decided within the next 24 hours. Bani Amin is believed to have irked the Islamabad High Court for not acting in a responsible way with regard to arrest of Gen. (retd)Musharraf. Sources informed that Establishment Division has been asked to implement the previous orders of caretaker Interior Minister Malik Habib to appoint Capt. (Retd) Zafar Iqbal from FIA as IG Islamabad. Zafar had gone on an official tour after waiting for his new posting for a couple of days and is expected to return in few days. The interior minister is believed to have asked the Establishment Division to call him back immediately and satisfy the court orders in letter and spirit. PM House spokesperson informed the media that Prime Minister Justice (R) Mir Hazar Khan Khoso has approved the following transfer/postings. Mr. Shahid Rashid, presently posted as Secretary Information Technology, is transferred and posted as Secretary Ministry of Industries on the retirement of Mr. Zafar Mehmood. Mr. Zafar Qadir, presently OSD, is posted as Secretary Ministry of Information Technology. Mr. Abdul Khaliq, OSD, is posted as Special Secretary Finance. Mr. Fazal Abbas Maken, presently working additional secretary at the PM’s Secretariat, is transferred and posted as Additional Secretary Religious Affairs. Mr. Hassan Raza Zafar, Additional Secretary PM’s Secretariat, is posted as Additional Secretary Commerce. Mr. Tariq Peerzada, Chief Commissioner Islamabad, is transferred and posted as Additional Secretary Finance. Mr. Jawad Paul, presently posted at NIPPS Lahore, is posted as Chief Commissioner Islamabad. Mr. Muhammad Asif Sheikh, presently posted at Establishment Division, is posted as Additional Secretary EAD.
See: http://wavelinking.blogspot.co.uk/2013/04/malik-riaz-gets-another-bureaucratic.html
ISLAMABAD: Landgrabbing in the capital came under the microscope in the Senate on Wednesday, as Senator Mushahidullah Khan ominously predicted that the capital would begin to mirror Karachi if the problem is not checked soon.“Today, the situation in Islamabad is the same as it was in Karachi some two decades ago. Then, the Karachi Municipal Corporation overlooked it, and today, every public park in Karachi is under the control of landgrabbers,” the PML-N senator said during a meeting of the Senate Standing Committee on Cabinet Secretariat and Capital Administration and Development.
The observation came after the city managers briefly informed the committee about encroachments and possession issues the authority has been confronting with a number of projects around the capital.
Senator Kalsoom Perveen chaired the meeting, where issues related to Park Enclave, Kuri Model Village and permission granted to Bahria Town for construction of an access road to Bahria Enclave were among the topics discussed.
In his agency’s defence, CDA Chairman Tahir Shahbaz, who took charge on October 2, 2012, sounded off the same answers from his last appearance before the committee — he needs some more time to streamline CDA affairs.
To every question on progress in long-neglected and delayed projects, the chairman simply smiled and confidently explained how upright a person he was and the number of difficulties he faced to “successfully cope with” the plethora of issues.
At one point, Senator Khan actually praised the chairman’s skills with the spoken word, saying, “You talk well. I am impressed by this quality of yours.”
The CDA chairman also recalled the recent past, when a number of MPs joined hands with illegal occupants of a predominantly Afghan slum for political gains and resisted the CDA’s attempts to retake possession of the land.
On hearing this, almost every member of the committee, including Senators Saeeda Iqbal, Kamil Ali Agha and Najma Hameed called for strengthening the CDA Enforcement Directorate and completely revamping the Law Directorate to tackle the burgeoning number of cases of illegal occupation and encroachment.
The CDA chairman informed that the law directorate has been computerised and that Abrar Mirza, a well-reputed officer from Punjab, would soon take charge as Enforcement DG.
Briefing the committee about the situation at Kuri Model Village, CDA Member Estate Shaista Sohail said the FIA had furnished two separate lists of fake affected people included in the CDA’s compensation award for Kuri Village, whcih were originally announced in 2010.
“There is a requirement to resolve the issue, as the award announced by the CDA in 2010 enjoys the status of a judicial order,” Shaista Sohail said.
She added that the matter is now with the CDA Law Directorate, while adding that the authority would not rely on FIA findings alone and it had been decided that the issue would be resolved in phases.
She said in the first phase, affected people whose forefathers’ names were on the built-up property award announced in 1978 would be given preference.
She said such straightforward cases would be settled by July, adding that a summary had already been approved by the chairman.
The committee called the Park Enclave project a complete failure. “Lack of interest is evident. Whatever the CDA has claimed so
far about the project has just been face-saving,” Agha said.
Senator Kalsoom Perveen also directed the Bahria Town Planning and Design DG to appear before the committee within a week and bring along the no objection certificate and layout plan of Bahria Enclave and its extension.
19/04/2013:
FIA given 2 weeks to probe covert real estate deal
ISLAMABAD: The Supreme Court has directed the Federal Investigation Agency (FIA) Lahore to complete its inquiry within two weeks regarding a covert real estate deal between the Defence Housing Authority (DHA) and the Evacuee Trust Property Board (ETPB) regarding the purchase of lands that belonged to gurdwaras. A three-member bench of the apex court, headed by Chief Justice of Pakistan Iftikhar Muhammad Chaudhry, expressed annoyance over the non-appearance of the secretaries of DHA Lahore and Islamabad chapters, and summoned them again on the next date of the hearing. The bench also directed the incumbent and former Evacuee Trust Properties Board (ETPB) chairmen to appear in persons regarding the handing over gurdwaras’ land in Lahore, Sahiwal and Nankana Sahib; purchasing of plots in DHA Rawalpindi; and transferring Rs 960 million to the authority. It is to be noted that former ETPB chairman Asif Hashmi, who is allegedly involved in this illegal deal, is contesting the upcoming election from Lahore on the ticket of Pakistan People’s Party. During the hearing, the DHA Lahore secretary neither appeared, nor did he submit any reply. The bench questioned if the DHA secretary did not like courts, as he had not appeared in the case. The counsel for the DHA requested the bench to give three days for furnishing a reply. staff report
See: http://www.dailytimes.com.pk/default.asp?page=2013%5C04%5C19%5Cstory_19-4-2013_pg7_3
10/04/2013:
Bahria Town fails to provide complete documents to SECP
* Commission says it will order action as soon as company provides all documents
Staff Report
ISLAMABAD: The Securities and Exchange Commission of Pakistan’s (SECP) enquiry into concealment of facts in the financial statements of the Bahria Town for three years, 2009-11, has entered into its final phase.
Despite continuous correspondence, the company has not provided around half of the required documents and the SECP believes that once the required information is made available by the company, it would be able to announce its decision and approve action against the company within next three months. The SECP has powers to impose penalty ranging between Rs 2000 to Rs 10 million on each director of the company with a warning for avoiding such kind of mistake while presenting the required accounts and information to the commission. The Enforcement Wing of the SECP has started enquiry after examining the financial accounts for the three years, 2009 to 2011, of the facts that need to be highlighted in these statements relating to deposits and other disclosure requirements a year back. During a series of meetings between the SECP officials and representatives of the company, a number of documents have been made available to the SECP. However, officials believe that there still are many important documents and information that have not being provided to the commission. During a recent meeting between the Commission and company officials, SECP asked for submission of more information and documents so as to safeguard the interest of the stakeholders involved in the company’s affairs. Explaining the scope of enquiry, sources at the SECP said that the commission intends to maintain highest level of transparency and fair play in these proceedings so that the reputation of the company does not get hurt, in case it has not done wrong. The company’s contributions in development of real estate sector and housing sector in the country are also being acknowledged and basic aim is to protect the money of the depositors. The official sources informed that the Rs 65 billion company needs proper oversight by the regulator, as its strict compliance with regulations and disclosure requirements would not only help depositors to get benefit but would also prove to be a benchmark for other similar companies in the real estate and housing sector of the country. The commission has said it is also cognisant of the activities carried out by the company for general public’s welfare, especially for the poor segments of society. Any mishap in financial issues, especially regarding the depositors’ money, could prove roadblock for the private investment in the mega housing projects being initiated in the private sector. Punitive action against one company would have positive impact on the working of others as well as this company to maintain further highest level of transparency, the sources added.
