ISLAMABAD, Dec 9: Another scam involving embezzlement of huge sums in a housing society has surfaced after the unannounced disbanding of a special cell of National Accountability Bureau (NAB) exclusively devoted to probe irregularities in housing societies.

According to an inquiry report submitted to the Registrar Cooperative Societies, Islamabad, a copy of which is available with Dawn , the management of the Ministry of Commerce Employees Cooperative Housing Society, formed in 1988, started development work without getting formal approval and purchased 150 kanals at highly exaggerated price.

The assistant commissioner (Saddar), who conducted the inquiry, has recommended sealing the society's record and a special audit into its affairs.

The report reveals the land was purchased for Rs500,000 per kanal, including the front and rear sides. But the maximum value of land in the area has been assessed somewhere between Rs350,000 and Rs400,000 for the front and Rs200,00 and Rs300,000 for the rear. The inquiry found that instead of purchasing a compact piece, the land has been purchased in pockets.

Calling for immediately stopping the work, the report recommended “necessary proceedings” against the present management committee for starting development work without NoC.

According to another document, the Federal Investigation Agency (FIA), during an inquiry into the National Assembly Secretariat Employees Cooperative Housing Society, also found irregularities. The FIA found the role of former chief commissioner Islamabad Fazeel Asghar vital in making sure purchase of land for the society from known 'land grabbers'. Advance payments were made but the land was never transferred in the name of society.

An amount of Rs50 million was paid by then administrator of the society, Tariq Ayub Khakwani, to one of the 'land grabbers' in April 2009 for purchase of land without any agreement. He failed to provide land to the society and refunded only Rs25.5 million. The administration also paid Rs8.5 million to another person for purchase of 34 kanals, but not an inch of land was transferred. Similarly, a land tycoon was paid Rs17.5 million for purchasing 45 kanals, but land was not transferred.

The administrator awarded contract to Mohammad and Brothers (MAB), engineers and developers, without any lawful authority, and also did not deliberately pay withholding tax of Rs4.6 million deducted from payment to developers.