A staggering Rs 15 million of public funds was squandered by the Construction Industry Development Authority (CIDA) in a legal dispute stemming from the flawed dismissal of a senior official, the Committee on Public Enterprises (COPE) has revealed.

This was revealed during the yesterday’s COPE session in which the performance report of the CIDA was discussed with the officials present.

The controversy centers around the dismissal of CIDA’s former Director of Finance in 2021. According to COPE proceedings, the officer was placed on compulsory leave on 8 October 2021, with the assurance that a preliminary investigation would follow. However, no such inquiry was conducted. Instead, in December 2021, the Director General of CIDA issued a letter terminating his employment.

COPE members sharply questioned the legality of this action, with one member describing the decision-making process as “problematic.” The dismissed officer subsequently challenged the termination in court and won, with the judiciary ordering his reinstatement.

Testimony during the COPE session highlighted critical governance failures within CIDA. After the initial court ruling, an internal report was commissioned, which concluded that the dismissal was “flawed” and recommended that the court’s decision be implemented, cautioning that an appeal would incur significant expenditure. Despite this advice, the then-Chairman reportedly pressured the authority to appeal, leading to a prolonged and costly legal battle. The appeal, which was ultimately withdrawn, accumulated legal fees amounting to Rs 15.01 million by August 2025.

Officials told the committee that legal costs exceeded Rs 650,000 per day of court hearings because the other party had retained the services of a President’s Counsel (PC). To match this, CIDA also engaged a PC, which contributed to the high expenditure.

The initial allegation against the Director involved misappropriation related to a vehicle allowance. The Director was entitled to receive the allowance, but a new directive from the Chairman instructed that a vehicle be provided instead. The allegation claimed the Director continued to draw the allowance, though it was confirmed that he did not use an official vehicle during the period. COPE noted that, despite the seriousness of the allegation, no formal disciplinary inquiry was held prior to the dismissal.

Beyond this case, COPE’s investigation exposed broader administrative lapses at CIDA. Several disciplinary proceedings experienced delays exceeding a year and a half, and the board failed to convene for five months during an election period, pushing approvals to January 2025.

In a damning observation, the COPE Chairman stated, “Okay, truly, this issue is related to someone’s personal issue and ego clash, and the institution has spent 150 Lakhs of public money on it.” The committee emphasized that personal conflicts appeared to have overridden proper administrative and legal procedures, resulting in a significant misuse of taxpayer funds.