KARACHI: A shocking revelation has emerged from the Karachi Development Authority (KDA), where millions of rupees are being siphoned off monthly in the name of fake pensioners.
According to the press statement issued by the Spokesman of Chairman Public Accounts Committee , Out of the Rs. 2.21 billion pension funds released for retired employees and widows of deceased staff, a significant portion is allegedly being withdrawn fraudulently.
The Public Accounts Committee (PAC), during a meeting chaired by its Chairman Nisar Khuhro, took serious notice of the financial discrepancies.
In response to the discovery of Rs. 667 million withdrawn under fake pensioner names, the PAC ordered the immediate suspension of KDA’s Director of Finance and handed over the investigation to the Federal Investigation Agency (FIA).
The meeting was held in the committee room and attended by committee member Taha Ahmed, KDA Secretary Arshad Khan, DG of LDA, DG of HDA, and other relevant officials.
The audit raised serious concerns about the disbursement of Rs. 2.21 billion without proper verification such as no-marriage certificates or other necessary confirmations for the widows of deceased employees.
PAC Chairman Nisar Khuhro questioned the KDA pension disbursement mechanism and asked why pensions were being released without biometric or documentary verification.
According to the KDA Secretary, the organization releases over Rs. 2.20 billion as pension funds for retired employees and widows. He added that pensions are continued only after biometric verification conducted by the respective banks after every six months.
Despite this protocol, the audit discovered 500 fake pensioners whose payments were subsequently stopped. Khuhro questioned how crores of rupees could have been withdrawn in the name of fake pensioners if biometric verification was truly being implemented in every six months.
Chairman Khuhro asserted that pension fund embezzlement would not be tolerated under any circumstances, as it causes direct damage to the national treasury.
In addition to the pension fraud, the PAC also revealed that KDA had awarded a parking plaza contract to its Additional Director for just Rs. 1.5 million per month, without holding a proper auction.
Expressing its displeasure, the PAC ordered the Additional Chief Secretary for Local Government to investigate the matter.
Furthermore, the PAC instructed the DG KDA to recover outstanding dues of Rs. 200 million in rent and electricity bills from KDA shops, offices, housing schemes, and flats, and submit a detailed report.
