FAISALABAD, June 28: The Tehsil Municipal Administration (City) has formally awarded the contract for the collection of fee in the head of 'buildings, conversion and malba,' despite repeated instructions by the Punjab government against the auction of such contracts.

During an emergent session held here on Monday under the chair of convener Muhammad Ilyas Ansari, an agenda item of building, conversion and malba fee contract were presented before the house for getting formal approval.

A number of councillors stood up on their seat, saying that it was a clear violation of the prescribed rules and instructions of the Punjab government. They claimed that the contract had been awarded for 185 per cent higher than the previous bid amount, which clearly showed that a huge amount would be collected from the citizens by taxing them.

TMO Rai Muhammad Amin said the step had been taken by the City Nazim and TMA officials in the larger public interest. Tehsil City Nazim Mumtaz Ali Cheema seconded him and said a summary had been moved to the Local Government and Rural Development Department for seeking relaxation in the rules on account of building fee contracts.

After a heated debate, the convener presented the agenda item of building fee contract before the house which was approved. However, the convener made it clear that the endorsement of open auction contract had been accorded subject to the approval of the Punjab government.

The building fee contract was awarded in year 2001-02 for Rs. 14.4 million, in 2002-03 for Rs 17.6 million and in 2003-04 for Rs31.2 million. But for the first time, the contract had been awarded in an open auction to SY Corporation through Shabbir Hussain of Chak No 203-RB for Rs 87.5 million which was highest as compared to equal amount of all the three contracts of previous financial years.

Under the Punjab Local Government (Collection Rights) Rules 2003, all the TMAs and the district governments were bared from awarding contracts of water rate, building fee, sanitation fee, license fee and lighting rate by auction.

The District Coordination Officer, a couple of days ago, had issued a circular to all the TMOs, reprimanding them from awarding the said contracts. Meanwhile, TMA (city) also approved the contracts for the collection of fee from the slaughter house for Rs5.9 million to one Abdul Waeed of Regal Road and contract for the collection of fee for the transfer of property rights for Rs85m to Hayat Associates.

BUDGET: Tehsil Municipal Administration (City) Nazim Mumtaz Ali Cheema presented a budget of Rs 1.18 billion for the year 2004-2005, with an allocation of Rs.659 million for the developmental projects.

At a special budget session convened by Muhammad Ilyas Ansari, here on Monday, the City Tehsil Nazim claimed that no new tax had been imposed on the citizens and maximum efforts had been made to provide basic amenities and upgradation of its infrastructure by generating funds at own resources.

Each UC would get Rs1.3 million for uplift plans. A comprehensive plan for roads rehabilitation had been formulated under which all major roads would be got constructed through the National Logistic Cell and the Frontier Works Organization.

He said another sum of Rs22.5 million would be paid to the NESPAK as consultancy and advisory fee and to FESCO for the shifting of electric poles from the roads and streets.