ISLAMABAD - Capital Development Authority (CDA) is facing a loss of Rs 7.5 million due to an unusual payment to a petrol and diesel supplier. Sources in CDA told INP that Machinery Pool Organisation (MPO), a directorate of CDA, had paid Rs 9.9 million to a contractor, Ali Auto Mobile Company, in advance for supplies of petrol and diesel to the civic authority. The supplier had stopped supply four months ago after supplying oil worth Rs 2.4 million.
Sources revealed that the contractors were normally paid by CDA after the completion of assigned supplies or work, but in this case the contractor was paid in advance due to political pressure. The firm had supplied oil worth Rs 2.4 million and halted the supplies, seizing the rest of money. The MPO directorate had sent a summary to get permission to register an FIR against the supplier and to halt all operations of the contractor as a punishment.
The source said that Chairman CDA Tahir Shahbaz had been urged to hold an inquiry to investigate why the contractor was paid in advance, while the civic authority was going through a financial crunch and did not have enough money to pay utility bills or salaries to its employees.