Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal announced on Wednesday that the federal cabinet has approved a Joint Investigation Team (JIT) report regarding alleged irregularities in the project marketed as "One Constitution Avenue." The minister stated that the report recommends legal action against those responsible, the blacklisting of the developer, and providing compensation for affected investors.
Addressing a press conference with Federal Minister for Information and Broadcasting Attaullah Tarar and Minister of State for Interior Talal Chaudhry, Professor Iqbal explained that the inquiry was initiated following directions from the Prime Minister due to allegations of fraud and irregularities at the Islamabad site. The JIT, which included representatives from the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), and security and intelligence institutions including the ISI, presented its findings to the cabinet for approval.
Professor Iqbal stated the JIT identified "serious irregularities and manipulation," noting that the bidding process was rigged, rules were relaxed to favor specific interests, and the lease was awarded to a company that did not qualify on merit. He claimed the Capital Development Authority (CDA) was negligent and allegedly involved in these irregularities. Specifically, the minister said the requirement for a bank guarantee was removed to help the developer, and the bidding process was found to be "suspicious and manipulated."
The minister further noted that while the project was originally approved as a five-star hotel, it was marketed and sold as residential apartments despite the "alleged illegal nature" of such sales. According to the JIT findings, Abdul Hafeez Sheikh was identified as the "alleged mastermind" of the scheme, reportedly acting in connivance with CDA officials. The report also identified the alleged involvement of former CDA chairman Kamran Lashari, Dr Faisal Awan, retired Azhar Ali Chaudhry, retired Brigadier Nasrullah, and the late Rai Nawaz Kharal.
Professor Iqbal stated the wrongdoing caused losses to the national exchequer and exploited the "financial vulnerability of ordinary Pakistanis" who invested their savings. He outlined the JIT's recommendations, which include blacklisting Abdul Hafeez Sheikh and his company from future public-sector projects and initiating legal action against them. The report also suggested a fresh, transparent review of the project to align with its original purpose and obtain necessary security clearances.
The minister stated the project should be renamed because the title "One Constitution Avenue" was allegedly obtained through fraudulent means, noting that the Ministry of Foreign Affairs was the first building on the avenue and had asserted its claim to that address. He added that the address was allegedly used for marketing to attract investors.
To protect deceived citizens, the government decided to compensate affected investors by refunding their principal investment and adjusting the applicable interest accordingly to ensure that they did not suffer financial losses.
Furthermore, the JIT recommended a comprehensive overhaul of the CDA, including amending its governing ordinance and establishing an independent Master Plan Commission. Professor Iqbal noted that official records should be digitized and officials in Town Planning, Enforcement, and Building Control departments should be rotated every two years to prevent the "entrenched irregularities and corrupt practices" caused by officials staying in the same posts for 10 to 20 years. The JIT also recommended pre-audit mechanisms for auctions and contracts through independent third parties.
Professor Iqbal concluded by stating that NAB has been directed to initiate a comprehensive investigation against all individuals involved, including those who signed relevant documents. He added that the accountability bureau should investigate whether any involved individuals are being protected by other institutions or influential quarters.
