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LDA inefficiency costing billions

YASIR HABIB KHAN

The Lahore Development Authority is fast becoming a white elephant in the eyes of Punjab government. It is all due to rampant mismanagement, growing financial inefficiencies, inordinate delay in the implementation of commercialization policy, strengthening racket between LDA?s employees and land grabber mafia and surfacing scandals of illegal private housing schemes besides bogus files of plots in LDA?s own approved housing schemes.
Since no remedial measures have been taken to put the things in order, the LDA created with an aim to rebuild Lahore as modern city has failed in fulfilling its original commitments to make the city the most livable mega city of the South Asian Region by 2010 and one of 30 leading educational, cultural, commercial, industrial and information technology hub of the world by 2020.
Believing the hard facts that LDA is losing its usefulness and worth, Punjab government has set in motion a process of mitigating its powers with regards to approving and monitoring the construction of commercial and residential buildings in the city. The Punjab government plans to abolish LDA? wing that permits different kind of construction. It has decided to constitute a separate Lahore Building Control Authority on the pattern of Karachi Building Control Authority to enforce building bylaws in true letter and spirit.
Recently a study report prepared by none other than LDA itself claimed that authority had developed management and financial inefficiencies, which had not only affected its institutional capacity but also weakened its financial position to undertake development initiatives and infrastructure projects.
The study report was conducted on the directives of Chief Secretary Punjab Javed Mehmood with the joint efforts of then Chief Minister?s Inspection Team Punjab Mazhar Ali Khan, Chief Inspector of Treasures & Accounts, Finance Department Muhammad Zubair and Inspector of Treasuries & Accounts, Finance Department Rafiq Ahmed. Former LDA DG Irfan Ali, LDA Additional DG Ahmed Ghazali and Director Finance Zaheer Akhtar Rana assisted in this regard.
The study report claimed the authority badly failed to evolve policies and programmes relating to the improvement of housing schemes, industrial development, traffic, transportation, health, education, water supply, sewerage, drainage and solid waste disposal.
The study revealed that LDA income is subsiding due to visible dearth of financial discipline in the areas of land acquisition, execution of development schemes and management of future liabilities. LDA was facing several challenges especially in the field of human resources for improved service delivery and discharge of its vital functions, the report said.
The report further disclosed that aggressive role of the authority had been impaired due to take-over of building controls by the city district government under devolution plan besides conflicts in LDA Act and PLGO, 2001.
The report said the authority had run into overall budgetary deficit of over Rs2.5 billion. LDA income was Rs 2,866.603 million against its expenditure of Rs 5,542.394 million in 2007-08 showing deficit of Rs 2,675.791 million. Deficit started with Rs 915.791 million in 2005-06, Rs 1,534.210 million in 2006-07 and reached at Rs 2,675.791 million in 2007-08, it said.
Non-development expenditure showed a rising trend over the development expenditure. LDA non-development expenditure stood at Rs 1,324.291 million against development expenditure at Rs 1,320.896 million in 2007-08.
Sources said that LDA faced great decline in revenue generation due to growing default in the head of commercialization fee that stood at Rs. 600 million in one year. The downward trend further declined after the ban on commercialization that remained for two years. Now, though ban has been lifted but despite commercialization policy has been notified, it is yet to be implemented, as Chief Minister Punjab Shahbaz Sharif could not make it formal approval.
Land mafia is on the rampage in the provincial metropolis, but LDA remained unmoved and absolutely uninterested in taking any action against them. Over the last three-and-a-half years, 35 illegal housing schemes have been launched in the city and after looting billions of rupees from thousands of people, sponsors of these schemes have simply vanished in the air. Provincial Housing Department and Lahore Development Authority though declared these schemes illegal, have failed to take any appropriate action. The housing schemes declared illegal by the LDA are located in different areas of the city like Ferozepur Road, G.T. Road, Raiwind Road, Multan Road and Lahore Canal. And these include, Anwar Housing Scheme, Faisal Garden, Green Cap Housing Scheme, Doctors Town, Al- Quds Housing Scheme, Noor Garden Phase-II, Galaxy Park, Rehman Town, Rehman Homes, Malika homes, Public Garden, Paradise Point, Gulshan-e-Haider Phase-I, Ali Garden, Jilani Park, Jilani Homes, Badar Block, Nishtar Park, Taj Bagh, Gulshan-e-Dawad, Shalimar Housing Scheme, Dawad Town, Hajveri Town, Lahore Medical housing Scheme, Global Village Scheme, Asif Colony, Shama Park, Gul Sher Town, Rizwan Garden, Sami Town, New Canal Park, Aamir Town, Canal Point and Canal Bank Scheme.
The LDA also failed to demolish 45 high-rising buildings and partially demolish 150 others constructed against the building by-laws in the city. There are about 400 to 500 high-rise buildings constructed in sheer violation of building by-laws. So far around 417 have been identified and examined by authority concerned.
According to list prepared by LDA, 45 illegal high rising buildings including 15 at Model Town Link Road, 5 in Gulberg, 6 in PIA Housing Society, 2 in Johar Town, 4 in Shah Alam, 3 in Peco road controlled area and 2 are situated in Allama Iqbal Town are demolishable. The famous among them are Al-Hafeez Plazas, China Market, Akram Complex, Telenor office, Tariq Complex, Booni Mall, Zainab Tower, New Liberty Tower, Al-Rehman Medical Complex, Khan Arcade, Khan Shopping Centre and Raabi Center. While, those 150 illegal high rising plazas, which would be partially demolished in Gulberg included Hemain Tower, Hassan Town, Ijaz Center, Macca Tower, Jeff Hight, Mega Tower, Ashrafi Height, Rehman Tower, Zarina Tower, Lak Hotel, Hotel Building, Variety Book Shop, Leads Centre, Askari bank, S.S house, and the famous Saddiqe Trade Centre. Others illegal high rising plazas included 75 in Gulshan-e-Ravi Scheme, 30 in Johar Town, 12 in PIA housing Society, 3 each in Samag Berg, Garden Town, Samanabad and one each in Faisal Town, New Garden Town and LDA controlled area.
However, Punjab government has again planned to demolish 169 those building constructed in sheer violation of building bylaws in the city after orders of a full bench of the Supreme Court of Pakistan headed by Justice Khalil-ur-Rehman Ramday in a case of illegally constructed high-rise buildings in the City in 18 May, 2009.

The Nation:Splus Report:May 30,2009