The Gulistan-e-Sarmast project has been at a standstill for 16 years despite massive collections from beneficiaries
The MQM-P is trying to change the leader of the opposition in the Sindh Assembly. PHOTO: FILE
KARACHI:
The Public Accounts Committee (PAC) of the Sindh Assembly has ordered a probe into alleged financial irregularities amounting to billions of rupees in the Gulistan-e-Sarmast housing scheme, a 2,000-acre project launched by the Hyderabad Development Authority (HDA) in 2009.
Despite collecting Rs 8.5 billion from over 32,000 beneficiaries in the form of land prices and development charges, not a single beneficiary has received physical possession in the last 16 years. Basic facilities including electricity, gas, water supply and road infrastructure have also not been provided.
Local Government Department Additional Secretary Afshan has been appointed as the investigating officer who will submit a report within two weeks.
The decision was taken at a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro, during which the audit paragraphs relating to the HDA were reviewed. Committee member Qasim Siraj Soomro, additional secretary local government Afshan, additional secretary HDA Nadeem Khan and other officials were also present.
HDA officials claimed that development works in five sectors of the project had been completed and Rs 4 billion out of the total Rs 8.5 billion collected had been spent on development works. However, the PAC has requested full details of the expenditure, including bank statements and details of development works carried out under the project.
Expressing strong displeasure, Khuhro questioned HDA officials over the suspension of work on the project since 2021 and failure to hand over the property to the beneficiaries for 16 years. He sought details on the initiation of the project, reasons for stopping work, the total amount collected from the beneficiaries and the continuing delay in granting possession.
HDA officials informed the committee that the Gulistan-e-Sarmast housing scheme was launched in 2009 and was expected to be completed in 2013. They said plots had been allotted to over 32,000 applicants, from whom Rs 8.5 billion had been collected since the launch of the project.
According to the HDA, development works in five areas have been completed and these areas are ready to hand over possession. An announcement was issued regarding this, following which around 200 beneficiaries have so far filed applications for possession. Officials added that each sector is spread over 80 acres and around 80 per cent of the development works have been completed in sectors 1 to 5.
Responding to questions regarding the use of funds, HDA officials said Rs 4 billion was spent on development works, while Rs 140 million was deposited for setting up a network station. However, they added that Wapda later revised its request and increased the required amount.
The PAC chairman wondered where the remaining Rs 4.5 billion had gone, but HDA officials failed to provide a satisfactory explanation.
The committee was also informed that the project consultant retired in 2014, after which the development works were carried out through competitive bidding. HDA officials further revealed that the authority currently does not have a chief executive officer.
It was also revealed that in 2019, the allotments of 50 percent of the beneficiaries of phases I, II and III were cancelled, while phase IV comprising 2,000 plots was announced. However, the Phase IV draw has not taken place for eight years.
Committee member Soomro suggested that if the HDA is not able to carry out the project on its own, it should consider executing it through a public-private partnership.
