In Pakistan, government entities operate under two primary governance models: Company Mode and Authority Mode. While each offers distinct advantages, they also present specific challenges, particularly when it comes to mismanagement and corruption. This article provides a detailed examination of both models, supported by high-profile cases such as the LDA City scam in Authority Mode and the struggles of Pakistan Steel Mills (PSM) and Pakistan International Airlines (PIA) in Company Mode.
1. Authority Mode: LDA City Scam and Additional Governance Issues
Authorities like the Lahore Development Authority (LDA) function under strict statutory frameworks designed to ensure public accountability. However, even with significant oversight, authorities are not immune to large-scale corruption and mismanagement.
LDA City Scam (2018): The LDA City project, intended to provide affordable housing, turned into a massive scandal when LDA officials sold more plots than actually existed, resulting in financial losses for thousands of investors. Investigations revealed that LDA officials had manipulated records and engaged in fraudulent plot sales. This severely impacted public trust in LDA and exposed significant weaknesses in its internal governance.
Additional LDA Scandals: LDA has faced several other issues of corruption, including an Rs 875 million scam involving senior LDA officers who manipulated land allotments in Johar Town.........