One Constitution Avenue JIT report exposes 'auction irregularities, illegal sales and losses to national exchequer'

ISLAMABAD: The Joint Investigation Team (JIT) report into the One Constitution Avenue project has been made public after the federal cabinet approved its disclosure.

According to the report, the Prime Minister constituted a committee in May, headed by the National Accountability Bureau (NAB), to investigate the matter.

The committee included representatives from the Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), and intelligence agencies.

The JIT report stated that the 13.5-acre land was originally allotted exclusively for the construction of a hotel. However, investigations revealed alleged manipulation in the bidding process.

According to the findings, the first auction was cancelled without approval from the Capital Development Authority (CDA) Board. Subsequently, the bidding terms were altered and a second auction was initiated.

The report further alleged that regulations were relaxed after bids had been received. Restrictions concerning building height, covered area and parking requirements were eased without obtaining the necessary approval from the CDA Board.

The second auction was won by a four-member consortium. However, the lease was ultimately awarded to a company that was not part of the consortium. The JIT questioned why the CDA had failed to verify the relationship between the consortium and the company that received the lease.

The report also highlighted that the requirement for a bank guarantee was removed just three days before the lease agreement was signed, allegedly providing a direct financial benefit to the developer of One Constitution Avenue.

The JIT further raised serious questions about the documentation submitted in connection with the joint venture. According to the report, the joint venture agreement was placed on CDA records in 2012, several years after the transaction had taken place.

The investigation also found that signatures of two consortium members were allegedly forged, while one of the witnesses was reportedly abroad on the date mentioned in the agreement.

Read more: One Constitution Avenue building to be converted into five-star hotel, says Mohsin Naqvi

Another irregularity identified in the report concerned the registration of the lease, which was carried out through the Rent Controller instead of the Sub-Registrar.

The JIT report stated that apartments in the One Constitution Avenue project were illegally sold as residential units.

The project had originally been approved as a five-star hotel featuring serviced apartments. However, 254 apartments were subsequently sold as residential units through 99-year subleases.

The report identified Abdul Hafeez Sheikh as the alleged mastermind who worked in coordination with CDA officials. It also named Kamran Lashari, Faisal Awan, Azhar Chaudhry and Brigadier Nusratullah among those allegedly involved in the irregularities.

The late Rai Nawaz Kharl was also named in connection with the alleged collusion.

According to the JIT, the alleged wrongdoing caused losses to the national exchequer while providing unlawful financial benefits to the individuals involved and their associates.

The JIT report also outlined a series of recommendations for the Prime Minister to address the alleged irregularities and prevent similar incidents in the future.