ISLAMABAD (APP) - The Auditor General of Pakistan (AGP) has identified embezzlement amounting to Rs 12 billion in the financial records of Capital Development Authority (CDA) during the financial year 2008-09. The audit report made 14 observations in five categories, including mismanagement in different projects worth Rs 7.7 billion, loss to authority worth Rs 3.1b, irregularities in contract management worth Rs 643m, non recovery of Rs 281m and overpayment due to officials negligence amounting to Rs 206m. However, when contacted, spokesman of CDA Ramzan Chaudhry rejected the audit report and said that unless established by a concerned Public Accounts Committee (PAC), he could not term it as embezzlement under specific rules and regulations. The total budget of CDA for the fiscal year 2008-09 was Rs 25.89 billion and the AGP exposed massive irregularities and mismanagement in the above stated amount. The report identifies the mismanagement of Rs 7,769 million in CDA accounts due to the defective approval of building plan for Grand Hayyat, a five star hotel, without getting No Objection Certificate (NoC) from Civil Aviation Authority, unauthorised extension of commercial area, on cancellation and possession of Agro farms due to non-devolvement and non-confirming use. The report observed that CDA suffered a loss of Rs 3,149 million, due to acquisition of land at higher rate and due to negligence on the part of CDA officials. The report identifies the embezzlements in contract management amounting to Rs 643 million, including award of work without competition, without approval of PC -1 and without open tendering to their selected parties.According to the audit report, CDA officials could not recover the amount of Rs 281 million, including property tax and water charges, cost of plots, and rent of shops and non recovery of license fee from PTCL. The report observed that due to the negligence on part of CDA officials, CDA suffered the overpayments of Rs 206 million. According to the report, CDA faced overpayments due to wrong calculation of escalation, irregular measurement of select material in rock cut and non-utilization of available material. The audit also observed that the authority also violated its own rules of penalty recovery in cases of illegal constructions and encroachments.