New Islamabad Airport Scam
October 23, 2007

SENATE SECRETARIAT

Subject: - MINUTES OF THE MEETING OF THE STANDING COMMITTEE ON DEFENCE AND DEFENCE PRODUCTION


 A meeting of the Standing Committee on Defence and Defence Production requisitioned by Senators Sardar Mahtab Ahmed, Mrs. Rukhsana Zuberi and Kamran Murtaza under Rule 163(4) of the Rules of Procedure and Conduct of Business in the Senate 1988 to discuss agenda mentioned at paragraph 2 below was held on Tuesday 23rd October, 2007 at 10.30 a.m. in Committee Room No. 4, Parliament House, Islamabad. Senator Nisar A. Memon was in the chair. The following attended the meeting.

(1) Senator Mushahid Hussain Sayed   Member
(2) Senator Syed Dilawar Abbas   Member 
(3) Senator Naeem Hussain Chattha   Member
(4) Senator Asif Jatoi     Member
(5) Senator Sardar Mahtab Ahmed   Member
(6) Senator Mrs. Rukhsana Zuberi    Member
 (7) Mr. Ali Asjad Malhi     Ex-Officio    Minister of State for Defence   Member
  
 The list of participants from Ministry of Defence is at Annex “A”.
2 The Agenda before the Committee was as under:-
  
“To discuss the alleged fraud of Rs. 1.72 billion committed in the new Islamabad Airport project”.

3.  The meeting started with recitation from the Holy Quran by Senator Naeem Hussain Chattha.

4.  In his introductory remarks Senator Nisar A. Memon welcomed the members of the Committee, the officers of Ministry of Defence and senior management of CAA to the meeting. He stated that initially MOD had sent a one page briefing paper which was not adequate to cover the issue therefore we asked MOD to send detailed information about the New Islamabad Airport Project, which they did one day before the meeting. Thereafter, he asked Minister of State for Defence to give MOD’s point of view on the subject.

5. Mr. Ali Asjad Malhi, Minister of State for Defence stated that MOD had received an anonymous letter concerning alleged fraud in land purchase for New Islamabad Airport. Generally anonymous letters go to the shredder but in this case a Committee had been constituted on 12th October, 2007 to probe the matter and submit a report within 30 days from the date of the first meeting. In accordance with its commitment to transparency and accountability it is MOD policy to try to determine the facts of cases relating to such complaints.  He requested that the Senate Committee meeting may be deferred to a later date so that the matter could be discussed after MOD receives the inquiry report.

6.  Mr. Kamran Rasool, Secretary Defence stated that the news item alleging fraud of Rs. 1.7 billion in purchase of land for the New Islamabad Airport appeared in the Daily the News on 5th October, 2007. The following day MOD issued a clarification and on 7th October, 2007 MOD sent a letter to CAA to constitute a Committee to probe the matter. Chairman Committee stated that it means that MOD took action despite the anonymous letter. He stated that he was well aware that Government action took time however he could not defer the meeting as requested by MOD because it was a requisitioned meeting, which had to be called within two weeks of the requisition notice. He asked the Members, who requisitioned the meeting to give their views on the suggestion of MOD to postpone the meeting to a next date after the inquiry report is received.

7.  Senator Sardar Mahtab Ahmed stated he believed there were instructions from the presidency to hold inquiry on the issue. He asked whether it was direction from the presidency or the requisition from the Senate which prompted the inquiry. He further stated that the Committee may call the reporter, who reported the news in question and also Mr. Fida Hussain, GM Estates and member of the Purchase Committee, who according to the news item had given a dissenting note on the land purchase issue.

8.  Senator Rukhsana Zuberi stated that the anonymous letter referred to by the MOS did not go to the shredder because there was a dissenting note by a member of the Purchase Committee and secondly because the name of the highest office of the country was mentioned. She inquired about the names of members of the Purchase Committee and further asked whether the inquiry committee was higher in status than the Purchase Committee.

9.  Senator Naeem Hussain Chattha was of the view that the Standing Committee should wait for the report of the inquiry committee before the matter is discussed by it. Senator Syed Dilawar Abbas agreed with Senator Naeem Hussain Chattha but added that any one could be mentioned in an anonymous letter, therefore, it was all the more important to wait for the inquiry report. Senator Asif Jatoi stated that if it was a matter of price of land then the issued can be resolved by a phone call to an estate dealer to check the price.

10.  Senator Mahtab Ahmed suggested that the probe by the inquiry committee should be held on the lines of the news item. The report should also include names of land owners and dealers separately. Senator Asif Jatoi suggested that price of land should be ascertained. Chairman Committee stated that Senate Committee was not holding an inquiry as MOD had requisite resources and was competent to do so therefore Members should suggest to the MOD the guidelines on which the inquiry could be held.

11.  Secretary Defence in response to a question stated that the inquiry Committee comprises Additional Director General, Military Lands and Cantonments Department as its Chairman while other members include Deputy Secretary MOD, who deals with land matters and a Director from the CAA to be nominated by the DG, CAA. Mr. Asjad Malhi, MOS for Defence stated that the inquiry report would be comprehensive and would satisfy all Members of the Committee.

12.  Winding up the meeting Chairman Committee suggested that the following points should also be mentioned/answered in the inquiry report:-

a. Names of CAA Board Members, who took part in the meetings which decided to purchase land for the new airport.
b. What are Government procedures for land acquisitions? Including procedures of MOD and CAA.
c. Land Acquisition Act should be appended to the report.
d. Names of real estate agents involved in the purchase of land.
e. Procedure of over sight in CAA pertaining to land acquisition and whether the procedure was the same in all departments.
f. Information about Arvi Enterprises and whether they quoted the lowest rate for the land.
g. The entire process starting from inception of the project of new Islamabad Airport should be stated in chronological order and the main developments that took place since then.
h. It should be confirmed that there was no eviction cases in the area.
 i. Price of land in the area during different periods of time.
 j. Plan of the entire project should also be appended.

13.  Senator Nisar A. Memon ruled that the next meeting of the Committee on the agenda would be held on 10th December, 2007 so as to give sufficient time to MOD to study the report and take a position on the matter.

14.  The meeting concluded with a vote of thanks to the Chair.

 

 

 

Iftikharullah Babar
Secretary Committee  Senator Nisar Ahmed Memon
           Chairman Committee
 
Annex “A”


List of Participants

 

1.  Mr. Kamran Rasool Secretary Ministry of Defence

2.  AVM, M. Safdar Khan  Acting DG, CAA
3.  Mr. Shaukat Nawaz Khan JS ( Aviation), MOD
4.  Syed Turab Haider Zaidi JS-III, MOD

5.  Maj. (R) Abdul Karim Gill Section Officer (Council),
     Ministry of Defence

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