JIT report on One Constitution Avenue approved, names Abdul Hafeez Shaikh
A joint investigation team has found irregularities in the bidding and lease of Islamabad's One Constitution Avenue project. The federal cabinet has approved its report, and the government says it has taken possession of the building.
- The JIT named former finance minister Abdul Hafeez Shaikh as the mastermind of the irregularities, according to 24 News.
- It found 254 apartments were illegally sold as residential units through 99-year subleases.
- It recommended that NAB file a reference in court within three months.
A joint investigation team (JIT) has identified former finance minister Abdul Hafeez Shaikh as the mastermind behind irregularities in the One Constitution Avenue project in Islamabad, 24 News reported. The report accuses him of colluding with Capital Development Authority (CDA) officials to manipulate bidding and secure undue benefits.
Interior Minister Mohsin Naqvi said the federal cabinet has approved the JIT report and that, on that basis, the government has legally taken possession of the building, according to Nawa-i-Waqt. Ministers said it will become a hotel.
According to the JIT findings, the 13.5-acre plot was originally approved only for a five-star hotel with serviced apartments. It was later converted into a residential apartment development, and 254 apartments were illegally sold as residential units through 99-year subleases.
The report says the first auction was cancelled without CDA Board approval and a second process began under revised conditions. Limits on building height, covered area and parking were relaxed without board approval. A four-member consortium won the bid, but the lease went to BNP (Private) Limited, which was not part of that consortium.
The JIT also raised other questions. It said the bank guarantee was terminated three days before the lease was signed, and that signatures of two consortium members were found to be forged. Joint venture documents appeared in CDA records in 2012 although allegedly made earlier, and one witness was abroad on the date in the document. The lease was registered through a rent controller instead of the relevant sub-registrar.
The JIT named Kamran Lashari, Dr Faisal Awan, Azhar Ali Chaudhry, retired Brigadier Nusratullah and the late Rai Nawaz Kharal as involved in collusion with Shaikh. It recommended blacklisting Shaikh and BNP (Private) Limited from future government projects, and asked NAB to speed up its investigation and file a reference within three months.
For buyers, the JIT proposed compensation of their original investment plus KIBOR-based interest or an inflation adjustment. It also recommended a fresh transparent auction, a ban on residential use, a legal review and a change of the project's name after the Foreign Ministry objected that it is the ministry's official address.
The JIT further recommended CDA reforms: overhauling the CDA Ordinance, an independent Master Plan Commission, digitised records, officer rotation every two years in key departments, and mandatory third-party audits of auctions and contracts.
Background
khabr.pk reported on 5 November that the federal cabinet approved the JIT report. Planning Minister Ahsan Iqbal said victims will be compensated and NAB will investigate those responsible. Interior Minister Mohsin Naqvi said the building would become a five-star hotel in the coming months.
Why it matters for Pakistan
The project involves public land in Islamabad, so the findings concern the city's residents and the use of public assets. Buyers of the 254 apartments are directly affected, as the JIT proposed compensating genuine buyers. The recommended CDA reforms would change how land is auctioned and approved in the capital.
