H
(Publish from Houston Texas USA)
(Mian Iftikhar Ahmad)
Faisalabad : A special audit report by the Auditor General of Pakistan has exposed serious administrative and financial irregularities in the affairs of the Faisalabad Development Authority, revealing that influential owners of private housing societies were granted an estimated financial benefit of approximately Rs 23 billion. This is not merely a numerical disclosure but a matter reflecting deeper concerns about urban governance, protection of public resources, and erosion of public trust. According to the audit findings, the benefit was not confined to a single decision or scheme; rather, it was extended through various stages by relaxing fees, failing to recover outstanding dues, granting extraordinary concessions in regularization, allowing flexibility in building plan approvals, and manipulating development charges, collectively causing substantial loss to the public exchequer.
The report clarifies that conversion fees, composition fees, development charges, water supply and sewerage fees were not fully recovered from multiple housing societies. In certain cases, penalties and surcharges were either waived or reduced significantly. Furthermore, liabilities were not assessed in accordance with prevailing market value, resulting in heavy revenue losses to the government. Similarly, unauthorized or irregular housing schemes were later regularized under lenient conditions, providing legal cover and financial advantage to their owners while disadvantaging developers who complied with the law. Through amendments in layout plans, green areas, public utility spaces, and open spaces were reduced and converted into saleable plots, which not only affected the urban environment but also shifted financial gains to specific quarters.
The audit further pointed out that in several development projects, procurement and tendering rules were not strictly followed. Instead of open competition, limited or questionable procedures were adopted. In some cases, unnecessary cost escalations were approved, and in others, payments were shown as complete despite projects remaining unfinished. It was also observed that certain commercial and residential plots were allotted below reserve price, allotments were not cancelled despite non-payment of installments, and timely action was not taken against illegal encroachments on public land.
In the building plan approval sector, commercial activities were allowed under residential approvals, enforcement of building by-laws remained weak, and mechanisms for full fee recovery were ineffective. Non-recovery of dues remained a persistent issue, with outstanding amounts worth billions of rupees pending for years without effective legal recovery measures. Regarding financial discipline, deficiencies were found in record maintenance, internal audit mechanisms were weak, and in some expenditures, complete documentary evidence was unavailable. In the human resource domain, appointments were made in violation of rules, irregularities were noted in contract and deputation matters, and deviations were observed in the payment of salaries and allowances.
The audit also expressed concern over violations of the master plan. Changes in land use were approved contrary to prescribed planning principles, green belts and public amenity spaces were reduced, and in the rapidly expanding city of Faisalabad, advance planning for traffic management, water supply, sewerage, and other infrastructure remained inadequate. As a result, the risk of future urban congestion, environmental challenges, and infrastructure shortages has increased.
Overall, the report conveys that transparency in decision-making was lacking, certain actions were taken without proper committee approvals, and monitoring and internal control systems were ineffective. The audit has recommended determination of responsibility of concerned officers, full recovery of outstanding dues, digitization and transparency in the approval process, and referral of the matter to the Public Accounts Committee for parliamentary oversight to ensure accountability.
This issue is not merely about financial mismanagement but represents a broader test of rule of law, investor confidence, and the future of urban governance. If public institutions deviate from established rules, the direct impact falls upon ordinary citizens, middle-class buyers, and small investors. The Auditor General’s report provides a framework not only to identify past failures but also to pave the way for structural reforms. It is imperative that this report does not remain confined to documentation; rather, through practical measures, transparent investigations, and institutional reforms, it must be ensured that public resources are utilized in the public interest and that urban development proceeds in an organized, equitable, and sustainable manner.
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