Audit finds over Rs225bn irregularities in Diamer-Basha Dam project

GILGIT: The Auditor General of Pakistan (AGP) has unearthed irregularities worth more than Rs225 billion in the land acquisition and resettlement of the Diamer-Basha Dam project for the audit year 2022-23.

The “Special Audit Report on Funds Provided for Acquisition of Land and Resettlement for Diamer Basha Dam (Revised)” highlighted widespread discrepancies in land measurement, categorisation, compensation payments, and financial management.

According to the second revised project concept (PC-I), the total land required was 35,924 acres. However, the audit found discrepancies in the measurement and categorisation of land across several mauzas/villages, leading to overpayments to landowners.

In 16 mauzas, land measurement was increased by 3,047 kanal and 17 marla, while land categories were altered in several khasras (land records). The audit noted that barren land was shown as uncultivated, barren as cultivated, and rocky as cultivated — changes made to benefit landowners. These adjustments resulted in excess payments of Rs1.28 billion to project-affected persons (PAPs).

Irregular payment disbursements

The report revealed that Rs56.19 billion was disbursed by the deputy commissioners (DC) and the Land Acquisition Collectors (LAC) of Diamer and Kohistan for land acquisition. Scrutiny of acquittance rolls showed that verification relied solely on overlapping thumbprints of landowners, rendering records unverifiable.

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It also found that compensation of Rs12.38 billion was paid to 3,809 households for an alternate resettlement package, despite the approved list containing 4,102 households. Discrepancies in 156 cases, amounting to Rs524.1 million, were identified by comparing 2007 field book records.

Another irregularity was a payment of Rs57.3 million for a resettlement package covering 19 missing households in Shaheen Kot. The new terms of reference (TORs) for this package were developed without approval from the competent forum, such as the Executive Committee of the National Economic Council (ECNEC), making the payments unjustified.

Excess payments and unlawful land acquisition

The audit further found payments worth Rs17.87 million for additional land, trees, and built-up property even though land had already been acquired.

A payment of Rs8.72 million was made by DC/LAC Kohistan for land damages caused by the faslana (boundary) in Lal Banda. Another case involved an excessive payment of Rs4.8 million for six kanals of cultivated land.

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The Education Department’s community school land was also unlawfully acquired by DC/LAC Diamer to construct a WAPDA colony in Thore without authorisation.

Land acquisition discrepancies

Major discrepancies were also noted in land acquisition records. According to DC/LAC Diamer, 32,185.44 acres were acquired, while WAPDA’s records showed 32,644 acres — a difference of 458.56 acres that remains unresolved.

The DC/LACs of Diamer and Kohistan also maintained multiple bank accounts in violation of the Gilgit-Baltistan Finance Department’s instructions. By April 30, 2023, 24 accounts held Rs4.96 billion. The audit noted that PSDP funds worth Rs86.99 billion were improperly kept in accounts other than designated assignment accounts, violating federal government directives.

Land mutations and financial irregularities

Although 32,121 acres of land were acquired and transferred to WAPDA, the required legal process of mutation was not carried out. Only letters of ownership transfer were issued, with no formal mutation in revenue records, which is mandatory.

The audit also flagged a problematic award issued for communal land in the reservoir area. Despite the matter being in court since 2013 after tribal compensation claims, the DC/LAC Diamer issued an award in December 2016 amounting to Rs8.11 billion.

Another issue was the excess booking of Rs7.48 billion under the Interest During Construction (IDC) account.

Unaccounted funds and payments

The report found that Rs73.73 billion was transferred to DC/LACs of Diamer and Kohistan for land acquisition and resettlement. Of this, only Rs6.56 billion was adjusted, leaving Rs67.16 billion unaccounted for.

It also pointed to a double payment of Rs3.03 million for acquiring land for a WAPDA office building. Other unjustified payments included Rs364.57 million for settlement of boundary disputes, Rs351.05 million for excess private land acquired, Rs79.83 million for additional land and property compensation, and Rs38.25 million for land damage during construction of the Thak Power House.

Tanveer Abbas