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Expensive ‘gifts’

Dawn Editorial
Tuesday, 07 Jul, 2009

PERVEZ Musharraf and Shaukat Aziz are very rich men. Yet, according to a series of revelations in The News, neither man could resist the temptation to leave office with hundreds of gifts presented to him by various heads of state and other officials during his tenure. The presents — everything from luxury watches to expensive handicrafts to exquisite jewellery — have a market value of tens of millions of rupees, but, according to obscure rules governing the claims to such gifts, were valued at a song and duly carted off by Gen Musharraf and Mr Aziz after paying a pittance. Rules may or may not have been broken, but, politically and morally, it looks very bad — yet another instance of the rich and the powerful in Pakistan making off with booty. There is absolutely no doubt what needs to be done: the gifts, each and every one of them, must be returned, they must be valued transparently and, if the rules allow it, the two must pay the fair price for whatever they want to purchase. Anything less and the stench of ‘legal’ corruption will not go away.

Will that happen? The former president and prime minister have kept quiet thus far, perhaps hoping that the furore will die down and they will continue to be able to live in comfort surrounded, perhaps, by their cheaply acquired expensive knick-knacks. They may even feel aggrieved for being ‘targeted’ and ‘victimised’. But the only ones who have a right to feel aggrieved are the luckless people of Pakistan. Gen Musharraf and Mr Aziz were supposed to be different; they were supposed to be clean in office; they were supposed to have been a decisive break from ‘dirty’ politicians. But it seems they were in fact all too willing to climb into the mud and have a good time.
 
Presents for the powerful

Thursday, July 09, 2009
Kamila Hyat

The writer is a freelance columnist and former newspaper editor

Through the Musharraf years, the slogan 'Sab sey pehley Pakistan' or 'Pakistan first' could be heard in many places.

The former president himself flung it about on every occasion, insisting that his only purpose in holding the dual offices of COAS and president that he controversially retained through till 2007 was to serve his country. A part of the rhetoric and bombast which marked the former commando's style was his insistence that the politicians of the past were blatantly dishonest and deserved to be punished.
His efforts to do just this – by working tirelessly to weaken the larger mainstream parties and victimize their leaders – in fact opened up room into which extremists elbowed in.

Many will also remember the heady early days of the Musharraf era. Soon after he assumed power in 1999, bureaucrats, politicians, businessmen and others were slammed into police lock-ups on charges of corruption as the self-proclaimed 'chief executive' announced plans to 'clean up' the country. The National Accountability Bureau (NAB), with its set of draconian powers, was established immediately after Musharraf's coup.

All this may indeed have had some purpose had there been a true demonstration of sincerity and some kind of genuine desire for across-the-board accountability by a man who loudly boasted his own honesty. As we all learnt, modesty was not a trait Pervez Musharraf saw any virtue in. NAB however, within months, was told it could not touch the military or the judiciary; with this, much of its purpose vanished – and in the years to come it was converted into nothing more than an institution to harass, victimize and coerce political opponents. The 'King's' PML-Q was a principal beneficiary of efforts to 'persuade' those from other parties to join its ranks, most notably ahead of the 2002 general election.

But, as is so often the case, it is now that we are learning more of what the president, who for most of his tenure wore khaki, was all about. It now transpires that, like his hand-picked prime minister, Shaukat Aziz, Musharraf too walked out of office with trunk-loads of gifts. According to one of the detailed stories from Rauf Klasra which have appeared in this newspaper, the retired general took with him 168 items gifted to him by dignitaries to London, where he and Aziz could no doubt set up a small museum of antiques made up of such items should they so choose. Aziz had amassed nearly 1,000 such presents, ranging from golf sets, Persian rugs and decoration pieces of all kinds.

Both men used similar tactics in having the gifts grossly undervalued, and then, dutifully, paying for them. We are thus expected to believe that ex-president George W Bush gave a man who he described as the most important ally of the US a leather brief case worth only Rs100. Others leaders apparently offered up to Aziz and Musharraf items that cost no more than Rs15 or Rs25. Perhaps they were frugally doing their shopping at the carts in bazaars such as Anarkali where vendors sell tacky plastic toys and trinkets, though in this age of inflation it is hard to procure items at such prices even here. :rofl: With a military-man's love for weapons, General Musharraf also collected his share of gold daggers from the Saudis and expensive revolvers from others.

This is in some ways a case of playing strictly by the book. A lawyer for the two men could argue rules had not been violated and the items paid for after evaluation. We all know though that this is absurd. The pettiness involved in the twisting of regulations and the under-pricing of precious items in some ways makes the manner in which our 'honest' leaders robbed their country even more despicable than the acts of those who eye sums of millions to add to their bank accounts. It is sad that Pakistan should have come to this.

Ethics, which precedes organized religion, is in many ways a diaphanous term. It is difficult to pin down and define precisely. A branch of philosophy since ancient times, it involves the question of morality, of 'right' conduct and the way this is practiced. There has been much debate over precisely what it encompasses and implies. The issue of 'work ethics' is one heard in many offices and even the increasingly hazy idea of 'sportsmanship' implies a degree of ethical conduct. But what we can say with certainty is that ethics appears to be a concept that eludes our politicians. So too of course does the more basic notion of honesty. The case of the vanished gifts is by no means the only one that involves Mr Aziz and General Musharraf. We have heard of their 'farm houses' in an Islamabad suburb; accounts of various kinds float concerning stock market scandals and the possible role of a certain banker; the mysteries concerning the building of a multi-million rupee fountain at Oyster Rocks in Karachi, which for months spewed sea water miles into the air above a city deprived of roads, of drainage and of clean water linger on and there are other stories too in circulation. It is true some of these may be unfounded and have no basis in reality. This is what the spokesmen for the former leaders have claimed. Indeed, in true commando style, former President Musharraf had in the past lashed out or even threatened media persons who dared raise such awkward questions. But then, with no effort made to clarify accounts regarding the gifts that are now in London, we must assume some at least of what is alleged and has been laid out in the harsh black and white of the printed word is accurate.

Of course Aziz and Musharraf are not the first to indulge in such malpractices. Nor will they be the last. A little over a year after the PPP government took charge in the centre, we hear all kinds of accounts of wayward deals and of corruption. The focus on the ongoing war in the northern areas seems to have helped make things easier by directing media focus away from misdeeds. But despite this, more and more people suspect there is a great deal that is afoot. Much of it involves huge sums of money, running into figures unimaginable for most of us who survive on salaries, small businesses or investments.

This, of course, is Pakistan's tragedy. More than anything else, more than all the aid that we seek in dollars, or riyals, or yens, we need leaders genuinely willing to put 'Pakistan first' and to address the concerns of its people as their primary priority. We have through the years seen few willing to do so; the men who raised the slogan still used by advertisers and promoters apparently saw it as nothing more than words – and this is a factor that goes a long way to explain why we are today a nation listed as among the ten 'failed' states of the world by the respected Foreign Policy journal in its latest index.
 
What do you do, sir?

Sunday, July 12, 2009
Ghazi Salahuddin

In a deeply polarised society, riven by conflicts that have become antagonistic, there is no dispute whatsoever about the gravity of the national crisis. All of us recognise that this is a very critical moment in our lives. Indeed, the inventory of our troubles would make us shudder with fear and foreboding. But how has this situation concentrated the minds of our rulers? What hints do we have about their determination to rise to the occasion and do things differently this time? What kind of fundamental reforms do we find in the system of our governance?

Alas, we find ample evidence that the old, corrupt ways of the rulers are not only surviving but have flourished. For instance, commentators like Farrukh Saleem, who writes for this newspaper, have underlined the perks and the privileges that have brazenly been incorporated in a budget that prescribes regressive taxation at the cost of the low-income citizens.

One example is the allocation of “Rs3 million a day, every single day of the year, for prime ministerial foreign tours”. Similarly, the 2009-10 budget has allocated “Rs600,000 a day, every single day of the year, for presidential foreign junkets”. We also have details about the high cost of keeping so many ministers and VIPs in a state of visible opulence in this impoverished and, according to some estimates, a ‘failing’ state. The question is: why can’t they at least try to create an impression of simplicity and prudence in their life style?

We also have reports that corruption has recently increased. In an Ansar Abbasi report on Friday, this newspaper said: “The World Bank finds corruption a serious and growing obstacle to the investment climate in Pakistan besides expressing dissatisfaction over the issue of governance in the country”. The point of reference was the Bank’s 128-page draft report on Pakistan’s Investment Climate issued in March this year.

According to Transparency International’s 2009 National Corruption Perception Survey, issued in June, corruption in Pakistan has increased 400 per cent in the last three years. A published comment said that “the two most corrupt sectors remained unchanged – Police and Power. In 2006, the judiciary was ranked as the third most corrupt sector but shows some improvement in 2009, now ranking seventh”. That judiciary is one sector that instils some hope in our hearts is instructive. Yet, the battle for our survival has to be initially fought in the domain of national security policies, civil governance, and social justice.

A prominent issue at this time is the imposition of the Petroleum Development Levy through a presidential ordinance after the Supreme Court had suspended the carbon surcharge on petroleum products in an interim order on Tuesday. The ordinance has now been challenged in a constitutional petition filed in the Supreme Court on Friday. Now, irrespective of whether this issue has intimations of a renewed confrontation between the Supreme Court and the government, the petroleum levy itself is a good example of the present drift in the context of the rulers’ unwillingness to respond to the dictates of social justice.

It is true that the carbon tax was meant to fill a wide revenue gap. But there have been no serious attempts to collect direct taxes from the rich and the powerful and it is always an easy way out to put the burden on the weak and the underprivileged. That they, the poor, are almost at the end of their tether is something that our rulers perhaps do not realise. We may be very close to a social explosion and without any visible leadership for a planned revolutionary change, the outcome can be disastrous.

This, then, is the other predicament of our people. After our loss of faith in the ability of the Pakistan People’s Party to lead the nation, we find no other national party, with sufficient support in all provinces, to mobilise the people for some kind of a revolution. That the social conditions are ripe for such a change may be certified by trained social scientists.

In this longing for a change in the goals, style and behaviour of our rulers I am reminded of a quotation of not a revolutionary but a one-time saviour of the capitalist system: John Maynard Keynes. He had said: “When the facts change, I change my mind. What do you do, sir?” What this means, simply, is that at this time, we need new strategies and new ideas. We must urgently rethink our national security doctrines and find new directions in the light of the ongoing war against extremists and the issues that this war has created.

We do not know if the present ruling coalition has the intellectual resources to comprehend the various aspects of the national crisis. This enterprise would also demand a moral commitment to the welfare of the people. When we look at the rising corruption and a callous indifference towards the plight of the people, we feel that our leaders are in a state of denial. Or they just do not care about the popular perception of their activities.

A student of Karachi Grammar School, Akbar S Ahmed, has written a piece in the latest issue of Newsline titled ‘A Family Affair’ to share his knowledge of how even the family members of high officials enjoy privileges and perks and how they throw their weight around. He feels that “what we don’t pay enough attention to is the everyday corruption all around us; the way the families of civil servants and elected officials gleefully jump on the bandwagon in a world where it seems that there is no upper limit to how much they can grab”.

It is against this backdrop that the miseries of the people become so heart-rending. All you need to do is to watch any news channel or read any newspaper and you will have some idea about the lives of the “wretched of the earth”. One great service that independent news channels have provided is that they have shown us the real face of the country. We can see how the poor live and suffer in stories about crime, load shedding, accidents and street demonstrations. Violence is everywhere. You can see helplessness that resides in the eyes of people you meet in your daily encounters.

So, how do our leaders propose to deal with this disequilibrated social system? What is obvious is that the integration of this system is seriously threatened. A very large number of people are in great distress and they find it difficult to come to terms with the ways of the rulers who have so far refused to show any genuine compassion for the poor. On the contrary, their indifference is reflected in how they live – or live it up.
 
Leaders, not rulers

By Farooq Hameed Khan

He came. He robbed. He left. This is how one could easily describe the success story of an ex-finance minister and prime minister who was imposed on this nation for many years. Having successfully accomplished his master's agenda and with no postal address in Pakistan, he quietly left one fine morning with a simple briefcase and most confidently boarded a London bound flight never ever to return. Little was the nation aware that his baggage to London contained hundreds of valuable gifts including diamond necklaces, Persian carpets, jewelled wrist watches etc, that he had obtained from the government's Toshkhana at throwaway prices 'as per policy'.These gifts were either presented to him during foreign visits or by visiting dignitaries and included some that had been declared and deposited in the State Toshkhana, while almost a third were not even reported. It was a flawed system that legitimised this corrupt practice resulting in financial loss to the state.

Musharraf, too, took full advantage of this 'facility'. Both now live a luxurious life in London, while Pakistanis endure the agony of the worst ever conditions in the country's history.

Why have Pakistan's ruling and feudal elite displayed lust and greed to amass wealth and riches? We have heard the hair-raising tales of wealth stashed abroad of the NRO beneficiaries, as well as of other high and mighty. Is there some kind of disorder that afflicts all those in power?

The true spirit of democracy lies in serving the people, alleviating their sufferings and improving the lot of the common man. While democracy gives authority, it also bestows responsibility on the elected leadership. In no way is democracy a license for loot and plunder of national assets and wealth. Why are authority and position misused to fill bank accounts through kickbacks, commissions in shady government contracts? Why the emphasis on enhanced perks and privileges for the elected representatives when the country is cash starved and surviving on foreign aids and loans?

Without a governance strategy, imagine the administrative chaos and inefficiency prevailing in public sector institutions like USC, OGDC and SNGPL etc which were forced through an Ordinance to reabsorb thousands of dismissed employees, inducted in the 90s on political grounds. Having been out of service for over 10 years and involved in God knows all kinds of activities, they are back without any screening, scrutiny or background intelligence checks.
 
I don't know why the Pakistani public is blind of these facts and picks people like Zardari to lead them.
Why do they not know what's best for them?

No one is blind those who are responsible of Pakistan's present day misery have taken there fare share for keeping their eyes closed.

PPP Bashing is not allowed and you can see it is pretty much one one way traffic.
 
Financial cover-ups

Dawn Editorial
Thursday, 23 Sep, 2010

The lack of transparency in the spending of public funds is deplorable under any circumstances but in Pakistan’s severely cash-strapped situation, it becomes an issue of grave proportions. Not only is there no transparency about where the funds have been spent, it seems that funds are often deliberately placed under heads other than where they have actually been earmarked.

Even more disturbing is the fact that the truth is generally not forthcoming, even upon direct query. Take, for example, the revelation put before the National Assembly’s Public Accounts Committee on Tuesday about an unaccounted for, one-time disbursement of Rs5.55bn to the Inter-Services Intelligence in 2007-08. When pressed for details, Finance Secretary Salman Siddiqui was only willing to say that the sum was paid as a supplementary grant “for the provision of relief”. Mr Siddiqui conceded that the head was a cover-up but refused to give any further details since it was “highly sensitive information”.

In a different regard, another piece of information that surfaced before the PAC was that the pensions of retired army personnel — amounting to Rs72bn in the current financial year versus Rs18bn for retired civilian employee pensions — was shown as civilian expenditure under a 2001 government decision. The finance secretary also told the committee that the government was paying Rs400bn annually under the head of subsidies but the sum actually went towards covering the losses of federal government entities, the recipient of the highest sum of money (Rs183bn) last year being the Pakistan Electric Power Company.

Pakistan cannot afford such financial murkiness and mismanagement. Given the various grim economic realities including inflation, rupee devaluation, debts and repayments, it is vital for the country to spend extremely wisely. Whatever funds are available must go where they are most needed, in a transparent manner and for good reason.

We must remind the authorities that it is well within the domain of the PAC to ask about allocations, given that the ISI and other bodies fall under the purview of the government. The country’s economy is already in dire straits, and matters must not be worsened through cover-ups and denials.
 
Three ex-Army generals found guilty of Rs 25 bn scam

October 02, 2010
By Rauf Klasra

ISLAMABAD: A nine-year-old Rs 25 billion scam of the Musharraf regime has returned to haunt his three favourite ex-Army Generals, who administered the Pakistan Railways in 2001, former ISI chief Javed Ashraf Qazi, Saeeduz Zafar and Hamid Hassan Butt.

A 20-member special parliamentary committee of the National Assembly, formed by Speaker NA Dr Fahmida Mirza on April 22, 2008, investigated the lease of PR’s hundreds of acres of land of Royal Palm Golf and Country Club, Lahore, to a private party. It has now recommended to the government to register criminal cases against these ex-generals and confiscate and auction their property to recover the losses before cancelling the deal.

These generals were summoned by the committee to give their side of the story but they failed to convince the members of their innocence. This is the major finding of any parliamentary committee since the return of democracy in 2008. The special committee has recommended immediate termination of the contract signed in 2001 and appointment of a new ad hoc committee for the interim period. It recommended fresh leasing of the Royal Palm Golf Course in an open auction so that maximum revenue could be generated for the Pakistan Railways, which according to its calculation might exceed Rs 40 billion.

This correspondent had exposed this scam in 2001 when it had landed in the Public Accounts Committee, after Auditor General of Pakistan had claimed that the then army generals were not ready to hand over the secret documents of the deal signed with their favourite party, where the father-in-law of General Pervez Musharraf’s son used to work as a consultant. The then railways minister Javed Ashraf Qazi had “condemned” this correspondent for filing this story.

The committee has also recommended prosecution of all the four members of the executive committee of the Railways who had executed this deal with the patronage of these Army generals, and confiscation of their property too.

The parliamentary inquiry report, which took more than two years to complete, has now revealed that the contract was achieved through fraud, cheating and misrepresentation. The parliamentary inquiry team headed by MNA Nadeem Afzal Chann submitted its report in the National Assembly on Friday. Other members of the team included Tariq Tarar, Tariq Shabir, Nasir Ali Shah, Nauman Islam Sheikh, Fauzia Wahab, Noor Alam Khan, Sardar Ayaz Sadiq , Abid Sher Ali, Raja Mohammad Asad Khan, Abdul Majeed Khanan Khail, Malik Bashir Awan, Haji Rozud Din, Pervaiz Khan, Sheikh Waqas Akram, Marvi Memon, Arbab Zakaullah, Engineer Shaukat Ullah, Gulam Murtaza Khan Jatoi, Iqbal Mohammad Khan and the minister for railways.

The report said its members discussed and investigated the matter of allotment of Railways land to the Royal Golf and Country Club, Lahore, on nominal price and recommended legal action against those held responsible.

The committee members have found the then minister for railways Lt General Javed Ashraf Qazi, former secretary and chairman Railways Lt General Saeeduz Zafar, ex-general manager Railways Major General Hamid Hassan Butt and former secretary railways Khursheed Alam Khan responsible for this faulty deal, which according to the committee caused Rs 40 billion loss if calculated on the current market price.

The 25-page inquiry report available with The News said, “We (members) strongly feel that the contract was secured by the present lessee through deceit and fraud in connivance with the then high-ups of the Pakistan Railways and is not in accordance with the approved terms or the advertised terms. It is illegal and void, especially in the light of the Supreme Court’s decision on the privatisation of Pakistan Steel Mills.”

The report said the deal was signed in indecent haste the day the executive committee approved the terms and conditions of the deal. The officials and three retired generals who appeared before the committee failed to explain how the entire work, such as approval of the deal, preparation of contract documents and signing of the same, were managed in one day. “It appears that it was actually a private contract between those retired generals and the lessee,” the report said.

It said the inclusion of Phase-II in the deal was also illegal, not based on any expression of interest and was not mentioned in the advertisement. It was to be completed within five years but eight years have lapsed and no revenue has accrued to the Pakistan Railways. The reasons of the delay given by the party are baseless. The Phase 111 is also illegal, it added.

The report said the revenue share of the golf course should be from gross revenue, including everything as approved by the executive committee. According to the Railways record, the lessee has repeatedly committed defaults and its contract is liable to be terminated on this sole ground.

The replies given by Railways ex-employees, ex-chairman and lessee are not satisfactory and did not address the issues at all. The lessee has been occupying the land meant for Phase-II and III without paying any rent. The committee calculated a net present value of the land, which substantiates that it was a very poor deal. The committee agrees with the opinion of the DG Audit Railways that even if we accept the value of the land to be Rs 3.2 billion as was claimed by General Hamid Hassan Butt in his deliberations before the Committee members, even in that case the Railways shall suffer a loss Of Rs 25 billion due to this deal because the rent is not calculated according to the Railways code of engineering which provides that the annual rent should not be less than 15 per cent of the market value of the land. The contract is therefore detrimental to public interest, the committee observed.

This correspondent called General Javed Ashraf Qazi to get his point of view. His wife attended the call on his mobile phone and said he was out for dinner. Meanwhile, talking to The News General (retd) Saeeduz Zafar said he was not in a position to give a comprehensive statement, as he had not read the report yet. But he defended himself and said many important legal issues were involved and this contract was awarded after doing proper homework and following the laws of the land. General Zafar claimed that it was wrong to assume that all those who were running the Pakistan Railways in 2001 were directly responsible. He said a special committee comprising railways officials was set up to monitor the whole process and ensure transparent award of the contract.

He confirmed that he was summoned by the special committee to give his side of the story. General Saeed claimed that this deal was also put before the Public Accounts Committee in 2006 and its members did not find anything wrong in it. He pointed out that a Senate body too had probed the deal and it too failed to find any flaws in it.
 
Rs 300 billion corruption but NAB fails to respond

By Ansar Abbasi
October 26, 2010

ISLAMABAD: On the eve of a new global report on corruption, the Transparency International Pakistan has claimed that the TIP alone has identified corruption cases worth Rs 300 billion in different federal government departments during one year.

Talking to The News Chairman TIP Adil Gilani lamented that the government did not show any interest in probing these cases of corruption. He, however, said that it was only the Supreme Court of Pakistan, the Public Accounts Committee of the National Assembly and the PPRA, which took notice of some of these corruption cases.

He explained that generally the identified corruption cases involved violation of the Public Procurement Regulatory Authority (PPRA) Rules of 2004. The Transparency International is releasing its report on Tuesday at 2 pm amid indications that Pakistan is all set to hit further lows amongst the world’s most corrupt nations. The 2009 report showed Pakistan climbing five numbers from the previous 47 to become the 42nd most corrupt country in the world.

Gilani expressed his disappointment that there was no effective accountability apparatus presently operational in Pakistan due to which corruption was on the rise. He explained that the TIP referred a number of corruption cases to the NAB but it did not proceed even in one single case.

Amongst the mega corruption cases, he said the Rental Power Projects of the government, presently under the scrutiny of the Supreme Court of Pakistan, was on the top. He claimed that under the Rental Power Projects, the government awarded 14 contracts in violation of the PPRA rules as also stated in the ADB report, causing a loss of over US$ 2 billion. He said that the TIP had also written to the apex court on this case of massive corruption and irregularity.

He said that the TIP also wrote to different authorities about corruption in Pakistan Steel, whose sale policy and procurement had caused reported loss of Rs 22 billion. This corruption case, though ignored by the government, had taken been up by the Supreme Court of Pakistan.
Gilani also talked of the alleged violation of Pubic Procurement Rules 2004 by Pakistan Railways in the tender for procurement of 150 locomotives, only US made, which might have caused a loss of at least Rs 40 billion to the national exchequer. The project, he said, is presently on hold.

Regarding the OGDCL, which made headlines in the recent past when Prime Minister Gilani appointed his jail mate and a convict who was not even a graduate as its managing director, Gilani said that the TI had also reported to the government authorities about the purchase of compressors for $30 million for Qadirpur Gas Field without inviting public tenders from M/s Valerus, which is a violation of the Public Procurement Rules 2004. He said the TIP also reported another violation of the Public Procurement Rules 2004 in tender for supply of rental drilling rigs costing the Government of Pakistan Rs 3 billion per year. He added that the Trading Corporation of Pakistan awarded contracts at exorbitant rates to cartels of Stevedores and Transporters in 2009, wheat and fertiliser, causing loss of over Rs2 billion.

Regarding the Trade Development Authority of Pakistan (TDAP), he said, it saved a claim of US $2.2 million for extra/additional work to the contractor of Expo 2010-Shagnahi, China, which was also supported by the Ambassador of Pakistan in China. On TIP objections, he said, the TDAP rejected the claim.

About the National Insurance Corporation Limited (NICL), he said, the TIP identified a case of purchase of 803 kanal-19 marla plot in Dubai’s Liberty Tower at the rate of UAE Darham 2,750 per square feet against the market price of AED 1,200 per square feet. Alleged loss to exchequer in this case, he said, was Rs 900 million. In another case, 10-acre plot was purchased in Korangi Deh Phihai, in August 2009 at the rate of Rs 90m per acre, against maximum market price of Rs 20m per acre. It caused a total loss of Rs 7 billion.

In yet another case pertaining to the NICL, land was purchased in Lahore in 2009 for Rs1.5 billion against market value of Rs 30 million. It caused a loss of Rs 1.2 billion to public kitty. In case of EOBI, he said that the TIP challenged the EOBI to invest in one of the four Centaurus Towers in Islamabad and the Intercontinental Hotel, Islamabad. The EOBI was also purchasing Karachi-Hyderabad Motorway and investing Rs 27 billion against the provisions of EOBI Act but the PAC later stopped this move.

Regarding the NHA, he said that according to the AGP Report 2008 NHA has irregularities of Rs 29 billion out of Rs 42 billion annual fund. He said that after eating away its annual development budget of 2010, now the NHA intends to reconstruct the M-9 Karachi-Hyderabad through some other investment. It needs Rs 27 billion for the project. He said that the NHA management planned to use EOBI funds for M-9.

Gilani said that Zafar Iqbal Gondal (brother of a PPP minister), who was Member Finance NHA, has been transferred and posted in January 2010 as Chairman EOBI. Asad Ullah Shaikh, another PPP appointee, who refused to allow Rs 27 billion to be used for a losing project, was sacked to make way for Gondal. He said that after these changes, the EOBI made a proposal to become a partner of the NHA on the M-9 under the Public Private Partnership Scheme of the GoP as BOT (built, operate & transfer) Project, based on the recovery of toll tax.

Gilani said that nowhere in world, road projects on BOT basis are financially viable but still the EOBI decided to own M-9 and build it. In 2005, he said, the board of trustees of the EOBI had decided to invest in the real estate. He added that for this purpose, PRIMACO (Pakistan Real Estate Investment and Management Company Ltd) was established, which is a wholly owned subsidiary of EOBI. PRIMACO has been registered with Securities and Exchange Commission of Pakistan (SECP) and this company has launched many real estate projects.

The PRIMACO, he said, has overstepped its mandate and prepared a proposal for the EOBI to build the M-9 at Rs 27 billion. They have also proposed to make the NHA as executing agency for award of consultants and contractors’ contract, total 10 numbers, and appoint PRIMACO as project managers of this project. The NHA, he said, has already awarded 10 contracts to blue-eyed contractors and consultants, without public tendering, biggest being Rs 4 billion contract to one contractor against PPRA Rules, and are awaiting approval of the EOBI to send an official letter of government approval to proceed. According to the EOBI Act and rules, he said the EOBI cannot invest public pension funds in an infrastructure project. The EOBI under Rule 2 (i) can invest two-and-a-half per cent of the portfolio. The EOBI’s current portfolio is around Rs 120 billion, minus billion of rupees losses in share market. This means only Rs 1.8 billion can be invested in M-9. But M-9 is a Rs 27 billion project.

Gilani added that in July 2010, the TIP wrote a letter to the NHA for its failure to obtain CAR, (Contractor All Risk Policy) from the NLC Northern Bypass Shershah bridge contracts causing the exchequer to pay Rs 170 million for the reconstruction of the bridge.

Additionally, contracts in 2008 & 2009 worth Rs 467 million, Rs 203 million and Rs 124 million were awarded to NESPAK in violation of Public Procurement Rules 2004. Gilani added that none of the contracts awarded by the NHA in the last two years are in compliance with the Public Procurement Rules 2004. In case of PEPCO, the TIP chief said that it reported Rs 2-2.5 billion corruption in purchase of 30 million energy saver bulbs scheme costing Rs 6 billion.
 
Rampant corruption

Dawn Editorial
Thursday, 28 Oct, 2010

ACCORDING to the Corruption Perceptions Index compiled by Transparency International, Pakistan is the 34th most corrupt country out of 178 evaluated, slipping eight places from its previous ranking. The government’s response, predictably, has been to play down the report and highlight faults in methodology. Equally predictably, the report has been cited in sections of the media and circles opposed to the government as yet more proof of the PPP-led government’s corrupt practices. In fact, as the TI report itself makes clear what is being measured is “the overall extent of corruption (frequency and/or size of bribes) in the public and political sectors” which means it goes well beyond the narrow confines of a particular political government and looks at overall corruption in the state machinery. But whatever the misreading or misinterpretation of TI’s corruption index may be, there is also a reality to consider: in this case, it’s fairly obvious there is no smoke without a fire.

Tales of corruption are rampant, and rampant corruption is visible to whoever is able to look around the corridors of power. Government leaders, while occasionally acknowledging that corruption exists, have done nothing to address the problem in a meaningful way. The government likes to trumpet the fact that it has handed over chairmanship of the Public Accounts Committee to the leader of the opposition in the National Assembly, but is silent on the creation of the much-promised National Accountability Commission and has done little to promote adherence to rules set out by the Public Procurement Regulatory Authority.

Notwithstanding the government’s own complicity in the problem and the fact that corruption is a serious menace, no debate on corruption in Pakistan can be complete without two points. One, from the earliest days of this country, corruption has been used as a stick to beat politicians with — and as a reason to justify extra-constitutional interventions. Democracy and good governance are not competing ideas and, given the political history of Pakistan, it needs to be reiterated — once, twice, a hundred times — that the problem of corruption must be addressed from within a democratic framework.

Second, corruption of all hues, not just political corruption, must be acknowledged. Few question the institutional corruption of the security forces, which arrogate to themselves staggering privileges. The judiciary high and low is broken and rife with tales of corruption. The same goes for the state machinery involved in service delivery and for the police forces. Yes, politicians have a higher duty to abide by the law, but many others have taken public oaths they violate on a regular basis.
 
VIEW: Investigating in dark alleys

Daily Times
Hassan Iftikhar
November 03, 2010

We journalists are a funny breed these days; we demand western standards of accountability and governance from our elected leaders but, as institutions, fail to follow the same standards ourselves. Let us investigate!

Our investigative journalists regularly name and shame our elected leaders, yet they refuse to question the ways the executive functions in this country. Since official ministerial communication is carried out by the concerned secretary, no corruption can take place without the abatement of the bureaucracy. Sometimes, investigative journalism in Pakistan remains merely a case of whole-scale copying of files handed out by aggrieved bureaucrats whose only bone of contention lies in being on the losing end of the commission dispute.

We have consistently failed to unearth evidence for or reasons of national tragedies such as the murder of our first Prime Minister Liaquat Ali Khan to the martyrdom of Benazir Bhutto. There are still hundreds of important events whose actual circumstances and reasons we are still unaware of, even though the significance of that information remains as important now as it was back when the events occurred.

We have used our right to access of information to only unearth the corruption of our elected representatives and have consistently failed to question why the civilian and military bureaucracy refuses to follow the rules and regulations made for them at every level, yet cannot be brought to accountability by the elected representatives.

We refuse to highlight how the bureaucracy has strived to ensure, through their rules of business, that their performance can never be actually debated by the people with whom the blame of failure of governance is actually laid. We do not see too many reports in newspapers on how the civilian bureaucracy has closed all avenues of questioning their performance in the Senate, National Assembly and the provincial assemblies of Pakistan.

We have never highlighted the helplessness of the elected representatives in our reports where even a very small question regarding the non-availability of clean drinking water in some far flung village or a motion seeking the arrest of a criminal in a brutal **** is turned down because the rules laid down do not allow us to.

We are obsessed with the corruption and ineffectiveness of our elected representatives in such a great way that when these ‘devils’ are sent home by some ‘angel’, no such story of corruption ever makes it to the front pages of a newspaper. There are times when one feels that this attitude of journalists should be investigated in itself for it usually seems a part of the great game to defame politicians.

Pakistan has been gifted in every way. It has been bestowed by great deep sea-ports, huge gold and copper mines and one of the largest resources of coal but there is no real or so-called investigation as to why the concerned departments of the concerned ministers were unable to develop any of these mega projects in the last five decades or so. Considering civil bureaucracy along with the military establishment of the country is the only assured reality in Pakistan. When the real policy making is done at the secretarial level, then why is no one asking questions from those responsible for the development of these projects?

Why is there no report on why the gold and copper mines of Reko Diq were sold for peanuts to foreign investors? I refuse to believe that there is any document in this country that is not drafted by the concerned bureaucratic division, so why were no questions raised by any of the bureaucrats when such a national asset was being sold off?

And in our effort to justify these lashings on the politicians, we rarely release some stories about the corruption of the armed services and the civil bureaucracy; these news stories are usually footnotes when compared to our unhealthy obsession with politicians.

There is never a serious investigative report that can help us analyse the costs and benefits of our bloated executive branch, which is paid for by the poor people of the country. These people are supposed to be responsible for making the system work and receive years of luxury for their services, yet there is no real obsession with truth when it comes to bureaucrats. And such an investigation may never occur because the file will never be made to be leaked to a journalist.

In the end, I will always await for an investigative report that outlines the exact reasons behind why the number of green plantations has not increased in the last 60 years in Pakistan when there were federal, provincial and local departments for this. Maybe our expert investigative journalists may want to consider an investigation into this; as an incentive I may suggest that there be made the possibility that Asif Ali Zardari, the current president, has something to do with it — he was after all once the minister for environment.

The writer is a broadcast journalist, currently specialising in investigative journalism.
 
VIEW:Transparency in governance

Daily Times
Gulmina Bilal Ahmad
November 12, 2010

The Right to Information legislation or the famous Article 19-A of the constitution sets the framework for public participation and inclusion in important decision making processes. This article is an important part of the constitutions of most democratic governments and provides citizens with the right to know the details of all the decisions and interventions made by the government that are directly or indirectly related to their interests. Pakistan, being a democracy, also has this legislation as an integral part of its constitution. However, its implementation is problematic.

Corruption is a cancer that is rampant in our system. A recent survey by Transparency International ranks Pakistan as number 34 for being the most corrupt nation in the world. Realising the importance of this survey and to bring this menace under control, our government has made a number of interventions at all levels. A common view is that this problem is only limited to the government level, but the reality is somewhat different. The survey discussed above takes into account all the necessary factors that make a country corrupt and this includes all the sectors.

Transparency not only helps governments in improving their status in the eyes of the people, but also promotes merit and fair play. However, the weapon that enables people to hold their government accountable is their right to information. This right not only enables them to monitor the working of their elected government but also acts as a reminder for the government that they have to fulfil the promises made during election campaigns.

Transparency in governance not only improves the goodwill of the government but also that of all its functionaries. Governance is not just limited to politics. Economic governance is of great importance as well. Presently, our economy is going through the worst recession of all times. Consider the price of sugar, which is soaring to Rs 120 per kilogramme. New taxes are being imposed that are making it difficult for the poor to survive. But a nation that has evaded tax for decades will not get used to this in a year or two; it will take another decade or so.

The opposition also ensures good governance because its criticism keeps the government on the right track. However, an opposition that understands its limits and criticises in a positive manner is hard to find. Unfortunately, the opposition benches in the present parliament are only criticising for the sake of criticism, which is creating more problems for the government.

After the floods, the government has taken a number of steps to ensure transparency because the international community and donors had bitter experiences in dealing with Pakistan in the past, especially during the rehabilitation phase after the earthquake of 2005. A Development Assistance Database has been formed by the government to increase transparency in disbursements and other dealings with different donors. Watan Cards are being issued to the flood affectees and NDMA and NADRA are the organisations that are in the forefront in this regard.

The media is also an important part of the whole cycle for ensuring transparency. Being a watchdog for society, it can help in the identification of culprits and the areas that have been ignored in regards to transparency and good governance. It is evident from a few examples in the past that after identification by the media, the nation was saved from big frauds like the privatisation of Pakistan Steel Mills (PSM). Being a liberal myself, I am not against privatisation but the way PSM was being handed over was unjustified.

The present government has also taken a number of other steps to ensure transparency, which is appreciable. A new accountability bill yet to be approved by parliament that might replace the existing National Accountability Bureau (NAB) with the National Accountability Commission is also an important intervention in this regard.

Accountability courts have been formed that are solely designated with the task of dealing with the cases of corruption in the present and previous governments. NAB is already working to ensure transparency in public departments. However, its mode of work is different from that of the accountability courts.

The Right to Information legislation, if implemented in its entirety, will help the population in the pursuance of their goals. It will ensure transparency and will make governance easy and efficient for the government. Democracy has a self-regulating mechanism, so we can expect good in the coming times. All the anti-democratic forces and conspiracy theorists that are seen active these days are only calling for the Dark Age of dictatorship to come back. Past experiences have shown us that dictatorships in any form are not only harmful for a country’s survival and development, but also deprive its people of the basic rights that are ensured in democracies.

The Right to Information legislation has empowered the common man and has enabled him to discuss his rights and demand them in case of a violation. We must continue with our struggle to support a democratic Pakistan, where the rights of every individual are given due importance. Good governance will only be ensured if the government is willing to ensure it. The opposition and the media must keep on playing their respective roles, but in a positive manner so that the transition towards a democratic Pakistan is not impeded.

The writer is an Islamabad-based consultant.
 
Gilani declares ‘war against corruption’

January 02, 2011

ISLAMABAD: Prime Minister Yousaf Raza Gilani on Saturday expressed his government’s resolve to launch a “Jihad” against corruption in 2011 by making legislative measures, including the approval of accountability law.

“It is our resolve for the new year to launch “Jihad” against corruption. I have talked to Nawaz Sharif so that we can adopt the accountability bill with consensus. And it is done in a way that nobody can raise a finger on it,” Gilani said in a television show on Saturday.

He said most of the governments in the past, including the two tenures each of the Pakistan People’s Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) as well as the JUnejo government, faced corruption charges and even were removed.

“But with an active judiciary and parliament as well as a vibrant media in the country, there is a hell of difference between now and then,” he said.


During the show, Gilani responded to live calls and questions from the public, which mostly related to the problems of common man and the government’s policies to tackle various challenges.

He said that PML-N had been playing the role of a responsible opposition, adding, the government would go forward having its working relationship with all the opposition parties.

Regarding the appointments of officers in some departments, he said there was a procedure for such appointments.

The prime minister said Fazlur Rehman remained in the coalition for three years and never had any complaint. He said the government would continue to make efforts to bring him back into the coalition fold.

He said the Muttahida Quami Movement (MQM) had some reservations and they had conveyed the same to him and President Asif Ali Zardari during separate meetings.

In response to a question about growing inflation, the PM attributed the trend to global recession, the war against terror as well as the impact of recent floods.

About power outages and electricity load shedding, Gilani said if the IPPs (Independent Power Producers), which were introduced during the PPP government in 1994, were not in place there would have been even more problem today.

Gilani, to a question about drone attacks, said he stood by his statement in the National Assembly that these attacks were counter-productive and creating problems for the armed forces as well as for the government. He said the issue of Balochistan was very important and after coming into power the government got released the Baloch leadership. “I assure the nation that in the new year, it is my resolve to mainly focus on Balochistan issue,” he added. app
 
An eye for an eye, will make the whole nation blind.

People are just indirectly/directly torturing themselves taking revenge!
 
SC summons former minister, army officers in land scam case

Dawn
By Our Staff Reporter
Jan 14 2011

ISLAMABAD: The Supreme Court has summoned former railways minister and PML-Q Senator Javed Ashraf Qazi and retired senior army officers who have been accused in a petition of being involved in the Rs50 billion Royal Palm Golf and Country Club land scam.

A three-judge bench comprising Chief Justice Iftikhar Mohammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday on Thursday admitted for regular hearing the petition jointly filed by former minister of state for railways Ishaq Khan Khakwani and founding member of the PPP Dr Mobashir Hassan. The fresh hearing will be on Jan 31.

The petitioners have alleged that 141 acres of land was leased out to Hussain Construction Company during the Musharraf government in a non-transparent manner and flagrant violation of the settled principles, causing a loss of Rs50 billion to the national exchequer.

The court asked the company, which operates the elitist club in the heart of Lahore, to submit a report within 10 days disclosing the names of investors, sponsors and shareholders of the project.

The railways board has been asked to submit the record of transaction between the railways and the lessee and particulars of the officers involved.

“Prima facie we are of the opinion that a number of questions of public importance as well as fundamental rights in terms of property, security and national interests are involved,” the bench observed.

Lt-Gen (retd) Javed Ashraf Qazi has been directed to submit a suitable reply to the allegations levelled by the petition against him. He was railways minister when the deal was struck. Former railways chairman Lt-Col (retd) Saeeduz Zafar and senior officers Maj-Gen (retd) Hamid Hassan Butt and Khurshid Alam have also been asked to submit their replies.

“Their absence in the court will deem to be considered as if they have nothing to rebut the allegations,” the order said.

Advocate Allah Nawaz, the counsel for the petitioners, informed the court that the land belonged to the railways. Initially, 102 acres were leased out to the company, but it was increased to 141 acres after negotiations. The lease period was also enhanced from 33 years to 49 years in the final agreement.

He said that after criticism and concerns expressed by different quarters, the present parliament had constituted a special committee which came out with certain recommendations, but so far no action had been taken.

A news item in an English daily alleged that recommendations of the National Assembly`s special committee had been put on hold.

Journalist Rauf Klasra, who appeared before the bench, said he believed that the size of the scam was Rs25 billion which had now swelled to Rs50 billion.

He recalled that in 2001 then chairman of the Public Accounts Committee H.U. Beg had taken up the issue of contract awarded in a dubious manner to a consortium of Malaysian developers and Hussain Construction Company.

Initially, Lt-Col Saeeduz Zafar, the then chairman of railways, had refused to provide details of the contract to the PAC, but later submitted it after getting an assurance that information would not be made public.

In 2004, the then secretary of railways, Shakil Durrani, had appeared before a sub-committee of the PAC, headed by Malik Allahyar, but findings of the committee remained inconclusive.

The present parliament took up the matter and a 20-member special committee, headed by Nazar Afzal Chandio, was set up by Speaker Dr Fehmida Mirza. The committee in its report submitted on Aug 26 last year suggested that properties of the people involved in the scandal, including Javed Ashraf Qazi, Saeeduz Zafar, Hamid Hassan Butt and Khurshid Alam, be auctioned to meet the losses.

Rauf Klasra said that recommendations of the committee had been ignored because Mr Qazi was a sitting PML-Q parliamentarian and he was believed to have requested the PPP government not to proceed with the matter.

Additional Secretary of the National Assembly Munawar Abbas admitted that a report on the matter had been finalised by the committee, but it was never presented in the assembly.

The court asked the chairman and secretary of railways to submit the report of the Auditor General Pakistan Revenues in addition to details of criminal cases registered if any or pending with any court. “If not then explanation be given why the issue was not taken up seriously,” it said.

The director general of services and member finance railways are also required to submit any valuable information which they consider necessary for assistance in the case.

The establishment division is required to submit details of the officers deputed at the time when the deal was made. Senior members of the Board of Revenue have been asked to submit details of the land indicating its ownership. The director general (audit) of railways is required to submit the audit report.
 
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