Corruption worth millions of rupees has been revealed in the Federal Government Employees Housing Foundation Park Road Housing Project. Six accused, including the Housing Foundation’s Project Director and Finance Director, paid millions of rupees for giving fake bank guarantees, for which the FIA ​​has registered a case against the six accused.
Park Road Housing Project Director Ghulam Farid, owner of the contractor company HR, Rab Nawaz Bugti, Assistant Director Babar Usman, Afzal Javed Deputy Director and Director Finance Muhammad Kashif conspired to pay Rs 71 crore on a fake bank guarantee and Ghulam Farid’s deputy Director Finance confirmed this payment and paid the money. In the case, the FIA ​​Anti-Corruption took the position that corruption was committed in the Park Road Housing Scheme.
The accused first paid Rs 35 crore and later paid the full amount while the confirmation report from UBL came on the 15th, while the accused made the payment on the 11th. The accused had given a fake bank guarantee for this project within the limits of Mobilization Masjid Kaswal on the payment. The FIA ​​has registered a case and started raids to arrest the accused, but we have not been able to arrest the accused yet.
According to the First Investigation Report, Consequent upon Enquiry No. 39/2024 of FIA CCC Islamabad, it transpired that FGEHA has launched a Housing Scheme at Park Road Islamabad comprising of approximately 8000 kanals of land, which was meant for meeting the housing needs of the members of the Supreme Court Bar Association as well for the federal government servants.
For the development of the Scheme, a contractor, namely M/S HRK & Co, was hired through the competitive process. The letter of Acceptance of the contract was issued to the contractor on 04-04-2023. M/s HRK & Co has submitted the Bank Guarantee No. BG/23/00167, issued by UBL Hali Road Branch Quetta, dated 09-05-2023, amounting to Rs 716,243,409/.
On 11.05.2023, the said guarantee was sent by Ghulam Fareed Sheikh, Project Director, FGEHA, to the Finance Wing after sanctioning. In the Finance Wing, Babar Usman DDO (Project) and Muhammad Afzal Javed, Deputy Director (Finance), got verification of bank guarantee via email and through letter that was then approved by Muhammad Kashif Director (Finance) FGEHA.
Upon verification, the 1st installment of the mobilization advance amounting to Rs. 358,121,704/- was released on 11-05-2023. Later, on 15-05-2023, the verification letter regarding the genuineness of the bank guarantee issued by UBL Hali Road Quetta branch was received in FGEHA. Subsequently, the 2nd installment of mobilization advance amounting to Rs 358,121,704/- was also released on 18-05- 2023, under the provisions of the contract, after verification by the consultant of the project M/S NESPAK that the contract had mobilized on site.
The release of 2nd half of the mobilization advance was linked to a 2% value of the work. NESPAK Consultant (Mr. Mukhtar Arshad) verified the 2% value of work done even though no land was handed over to the contractor for physical work at the site and that the Project Director (Mr. Ghulam Farid) without having verified the work done sanctioned the release of the 2nd half of mobilization advance amounting to Rs358,121,704/- to the contractor.
The contractor, M/S.HRK& Co. continued working on the Project, and two payments against the work done were also released in June 2023 (IPC-1) and Dec 2023 (IPC-2), respectively, after necessary vetting and verification by the project consultant, namely M/S NESPAK. Meanwhile, on 19-01-2024, a complaint regarding fake bank guarantees was received from M/o Housing and Works vide Dy No. 37/2024 to FGEHA.
The in-questioned Bank Guarantee was verified vide No. REF UBL/HALI/1055/2024 dated 11-05-2024 and same were verified by Ghulam Ali Raza, Head Trade Services, Trade Processing Centre Blue Area Islamabad, that the Bank Guarantee No. BG/23/00167, issued by UBL Hali Road Branch Quetta, dated 09-05- 2023, amounting to Rs 716,243,409/ in favor of FGEHA by the contractor M/s HRK & Co is FAKE.
This FAKE bank guarantee caused a loss of Rs. 701 Million to FGEHA. On 27-01-2024, the Contractor M/s HRK & Co submitted a bogus/fictitious claim of Rs. 1. 363 billion in IPC of dumping of unsuitable and surplus material from the project site to 60 km away at Missa Kiswal Gujar Khan at the cost of Rs. 114/ per cft.
The item of additional lead was not part of the contract and did not exist before the IPC #3. To give a legal cover to the aforesaid claim, the PD Sheikh Ghulam Fareed, at his level [for which he was not competent], approved the dumping site without the approval of the Employer (DG FGEHA).
To recover the mobilization advance, the Consultant (NESPAK) illegally vetted and verified that bogus/fictitious IPC#3. Prima facie, this constitutes offences of cheating, fraud, criminal misconduct, misuse of authority, and criminal breach of trust u/s 409, 420,468. 471,109 PPC r/w 5(2) 47 PCA.
Hence, after approval from the Competent Authority, a case FIR is hereby registered against 1) Rab Nawaz Bughti CEO M/s HRK & Co, 2) Ghulam Fareed Sheikh, the then Project Director FGEHA, 3) Babar Usman, Assistant Director Finance DDO Project FGEHA 4) Muhammad Afzal Javed, Deputy Director (Finance) FGEHA, 5) Muhammad Kashif Director Finance FGEHA and 6) Mukhtar Arshad GM Project-Manager (the Consultant -NESPAK).
The role of any other, if found involved, will be thrashed out during the investigation. I shall investigate the case. Copies of the FIR are being sent to the quarters concerned.
