Erra short of achieving targets: report

By Sher Baz Khan Dawn October 08, 2008

 

ISLAMABAD, Oct 7: The Earthquake Reconstruction and Rehabilitation Authority (Erra) is not only short of achieving its targets but inflationary pressures have also cut by half the purchasing power of its housing subsidy amidst reports of ‘bribes’ and various forms of ‘rent seeking’.

A survey conducted by Omar Asghar Khan Development Foundation has found that cost of access to Erra’s housing subsidy has been quite substantial including expenditures incurred on transport and documentation.

It often also included bribes and other forms of rent-seeking from chai pani to more blatant bribes of up to Rs25, 000 paid to assessment teams at different stages. The survey was carried out in 37 villages of 15 union council of Battagram in the Mansehra district.

The government’s initial promise of across-the-board compensation for houses damaged or destroyed was replaced later by an offer of subsidy after securing $6.2 billion pledge for assistance at the Islamabad donors conference.

In March last year, Erra’s then chairperson Altaf Saleem had claimed that 98 per cent of the earthquake victims had been compensated. Four months later, he announced that the figure had increased to 99 per cent. However, these claims were not supported by Erra’s own August 2008 report.

In the report, Erra confirmed that only 175 schools had been reconstructed out of 5,344 that were to be rebuilt. As many as 998 schools are still at the planning stage, 1,724 at the tendering stage and 1,155 under construction.

Just a month ago, Erra had to reconstruct 237 of the 307 health facilities, but so far it has completed work on only 38 centres.

It had also to rebuild 4,080 water supply and sanitation schemes by the end of June this year. However, only 1,466 were constructed by August. Interestingly, none of the 23 solid waste management schemes has been reconstructed.

SUBSIDY: In 2006-07, Erra carried out assessment of all houses. Completely destroyed houses were declared eligible for a subsidy of Rs175,000 and partially damaged houses for Rs75,000. Those that were categorised as having negligible structural damage were not eligible for any subsidy.

Erra had not considered the ratio of inflation that could soar in the next couple of years. Keeping in view the purchasing power of the Pakistani rupee, construction materials for 400 square feet (one room, a kitchen, bath and verandah) that cost Rs175,000 in 2006 now requires Rs190,160. One needed Rs200,946 to construct such a basic housing unit an year ago.

The arduous process of accessing subsidy becomes more and more problematic if the claimant expired in the process. Transferring the claim to the next of kin added another bureaucratic layer further delaying access to funds. This additional hassle could have been easily avoided if information on next to kin was included in the subsidy form. Transfers also generated conflicts if more than one person claimed to be the next kin.