Audit reveals Rs 38.5 million awarded to four contractors sharing the same address; Rs 3 billion spent with little on-ground development; gross violations in procurement, tax evasion, and overpayments totaling over Rs 17 billion.
By Nazir Siyal
KARACHI: A massive financial scandal has rocked the Gorakh Hills Development Authority (GHDA), exposing deep-rooted corruption, fake contracts, and gross mismanagement of over Rs 17 billion in public funds.
A government audit of the past eight years has revealed alarming irregularities in project execution, procurement practices, and payments, with little to no visible development on the ground.
At the center of the scandal, four major contractors, Mahewish Shaukat, Muhammad Ali Chauhan, Majid Ali Chauhan, and Rashid Ali Chauhan, received contracts worth Rs 38.5 million.
Shockingly, all four are registered at the same address, House No. 1, Jail Road, PIB Colony, Karachi.
This raises serious questions of collusion and conflict of interest.
Despite a formal audit notice issued on April 10, the Authority failed to respond.
The audit further revealed that the GHDA bypassed tax deductions, including Rs 10 million in stamp duty and Rs 24.3 million in general sales tax, causing significant losses to the exchequer.
Despite receiving Rs 3.046 billion for the development of summer resorts, there has been minimal progress, this amount, Rs 2.868 billion was spent, but no record exists for the remaining Rs 177.8 million.
Procurement procedures were flouted, essential documentation was missing, and standard bidding protocols under SPPRA were ignored.
Worse still, expenditures for incomplete projects ballooned to Rs 9.9 billion nearly triple the original cost, resulting in an excess of Rs 7.36 billion. Equipment worth Rs 60 million was procured at rates grossly inflated by up to 218%.
In one case, a secured advance of nearly Rs 60 million was released to contractors without delivery of material, documentation, or approval.
Another Rs 2.8 billion was lost after a key contract was cancelled post 94% payment for partially completed work, leaving the project abandoned.
The scandal deepens with the award of a Rs 216.6 million tender to M/s FIM Enterprises (Pvt) Ltd, a firm that submitted fake documents and lacked required experience.
The audit report also notes Rs 2.3 billion in unverified repair works and Rs 346 million paid to a blacklisted contractor who illegally demolished parts of the historic Pucca Fort in Hyderabad.
Revisions of project schemes worth Rs 859 million were carried out multiple times within two years, violating planning guidelines and raising suspicion of manipulation for contractor benefit.
Adding to the list of malpractices is the non-deduction of Rs 24.8 million in taxes and duties, further highlighting administrative negligence.
The Departmental Accounts Committee (DAC), in its January 2025 meeting, directed the Culture, Tourism and Antiquities Department to provide records and fix responsibility. However, no satisfactory replies or documents were produced until the finalization of the report.
The audit strongly recommends a high-level judicial inquiry and strict accountability, warning that such malpractices threaten public trust and undermine institutional credibility.
Total Audit-Flagged Irregularities, over Rs 17 billion and Status of Development Projects observed largely Incomplete
Response from GHDA authorities sources as well as non-cooperative
Audit Recommendation, Immediate inquiry, recovery of funds, and prosecution of those responsible.
When asked the official statement by Minister for Culture and Tourism, Syed Zulfiqar Ali Shah, on Audit Irregularities at Gorakh Hills Station Authority, he tried to fistance Himself from Gorakh Hills Audit Scandal, Blames Predecessor
Minister for Culture and Tourism, Syed Zulfiqar Ali Shah, addressed concerns regarding irregularities highlighted in the audit report of the Gorakh Hills Station Authority.
He clarified that all the financial transactions under scrutiny occurred during the tenure of PPP MNA Rafiq Ahmed Jamali, who previously served as the Chairman of the Authority.
Minister Shah emphasized that he assumed the role of Chairman only one year ago and has not utilized a single rupee from the Rs. 25 crore grant allocated to the Authority.
He stated that no payments have been made under his tenure to any contractors, daily wage workers, or contract employees.
Furthermore, he pointed out that no meetings related to the Gorakh Hills Station Authority have taken place during his tenure.
He added that all other expenditures under the Department of Culture and Tourism have been handled transparently and in accordance with the rules.
However, the Gorakh Hills project is the only one where audit issues have been raised, which is why he has chosen to distance himself from it.
Highlighting his commitment to developing tourism across Pakistan, Minister Shah mentioned his visits to several key tourist destinations, including Fort Munro and Koh-e-Murree.
He expressed his desire to develop Gorakh Hills through a public-private partnership model. On his request, the Chief Minister of Sindh, Syed Murad Ali Shah, approved a budget for the construction of a road leading to Gorakh Hills.
This project will be executed by the Frontier Works Organization (FWO) with funding from the Sindh Government.
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