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Today's Paper | September 19, 2024

Published 12 Sep, 2024 07:23am

CDA board addresses financial oversight, approves new projects

ISLAMABAD: The city managers on Wednesday decided to form a committee to decide the fate of four cinema plots.

These plots, which were once used for cinemas, are now being utilised for commercial purposes by allottees following a decline in the cinema industry.

The Capital Development Authority (CDA) board, chaired by Chairman Mohammad Ali Randhawa, discussed the issue of abandoned cinema buildings and the ongoing commercial use of these properties.

The board was told that there were four cinema in Islamabad – Kohsar Cinema in Sitara Market and one each in Melody, Blue Area and F-8. Except F-8, the other three cinemas that had been functional for decades were converted for commercial use, contrary to the purpose of the allotments.

The board discussed the suggestion that the property owners be required to maintain 50pc of their buildings for cinema use while allowing the remaining 50pc for entertainment and commercial purposes, subject to commercial charges. It was suggested that in case the owners did not agree to this arrangement, the CDA may cancel the allotments and auction the plots for anew commercial use.

The board decided to form a committee to examine this proposal in light of CDA’s rules and regulations, with recommendations to be presented at a future meeting.

Meanwhile, the board addressed the cancellation of an 800-square yard plot purchased by a senator from the CDA in an auction in 2020.

According to CDA’s rules, the owners of plots less than 1,000 feet are not bound to have a parking facility. However, in brochures, the CDA mentioned parking requirement and when investors raised this point, the civic body officials told them verbally that this mistake would be ratified. As a result, the senator purchased the plot and deposited 25pc of the amount.

Later, he applied for approval of the building plan, but the CDA rejected it by saying that the plan could not be approved until the mistake is ratified. Resultantly, the senator filed a court case and due to negligence of the civic body and its law wing, he kept dragging the case for several years.

The CDA cancelled the plot after failing to receive the remaining 75pc amount within a year of the auction, but later, the court ordered the civic body to withdraw the cancellation letter.

On Wednesday, the board decided to withdraw the letter.

It is yet to be determined whether the CDA will require the remaining payment at the 2020 auction rate or the current market rate.

According to sources, the rates have risen significantly during the past four years. The CDA should also look into the role of concerned officials, who did not rectify the mistake on time.

Meanwhile, a press release stated that as an effort to improve financial management of the CDA, the board has decided to place the resource wing under the administrative control of member finance. This change aims to achieve revenue targets, explore new sources of revenue and address deficiencies in the revenue collection process. It was decided in the meeting that the resource wing will introduce new technology and modern practices in the financial operations of the authority.

The meeting further decided to hire the services of a transaction adviser for an IT Park in Sector G-10, which will be developed through public-private partnership. In response to CDA’s ads, three firms applied and one was qualified by the CDA.

The transaction officer will protect CDA’s rights and determine whether the deal suits the civic body. The CDA board also approved a proposal regarding conducting feasibility and design studies for the Islamabad Bus Terminal through the Asian Development Bank (ADB).

The board also gave approval to seek advisory services from the Public Private Partnership Authority for various projects. Similarly, to improve the sewerage treatment system in Islamabad, it was decided that the City Sewerage Division will be placed under the administrative control of Director General Water Management.

Published in Dawn, September 12th, 2024

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