Rawalpindi: Despite cancellation of a contract regarding renovation of suits in parliament lodges, the Capital Development Authority (CDA) member engineering has allegedly made a payment of Rs60 million, to the construction firm.

According to sources, the CDA awarded Rs2.90 billion contract to Habib Rafique construction firm, in 2011 and the project was supposed to be complete within three years. However, the construction firm could only complete 20 per cent work on the project, within the stipulated time. A National Assembly committee later conducted an inquiry, into the delay and recommended cancellation of the contract, besides asking the CDA to confiscate the bank guarantee of the firm which was approximately Rs300 million.

The CDA aid that the firm had submitted bank insurance rather than a bank guarantee which was accepted by the CDA. On the recommendation of the NA committee, the CDA chairman cancelled the contract. In the meanwhile, the construction firm filed a petition in a local court, while challenging the CDA chairman’s decision. The contractor said that the delay occurred due to the delay in funds.

According to the source, Member Engineering Shahid Sohail released the mobilization advance and other sums well exceeding the bank guarantee submitted by the contractor. The amount totaled Rs60, the source said.