Government orders recovery of Rs 4.1m from Leghari, Rashid

[RabzonKhan]

Rs 22 billion corruption in PSM

January 25, 2011

SC gives FIA last chance to arrest real culprits

* Three-member bench rejects FIA’s inquiry report, warns it of stern action if it fails to comply with court directives

By Hasnaat Malik

ISLAMABAD: Rejecting the Federal Investigation Agency’s report regarding the alleged corruption of Rs 22 billion in the Pakistan Steel Mills, the Supreme Court on Monday directed the FIA to arrest the actual culprits involved in this scam and submit a report in this regard on February 1.

The court warned that it was the FIA’s last chance to arrest the real culprits involved in the scam, otherwise the court would take action.

The court also deplored that the FIA, instead of nabbing the true criminals, held a watchman and a canteen owner for a scam involving billions of rupees.

A three-member bench of the apex court, headed by Chief Justice Iftikhar Muhmmad Chaudhry and comprising Justice Muhammad Sair Ali and Justice Khalilur Rehman Ramday heard the suo motu case against the alleged corruption of Rs 22 billion in the PSM.

During the course of proceedings, FIA Investigation Officer Mouzam Jah presented the inquiry report regarding the alleged corruption in the PSM, but the court expressed dissatisfaction over the report.

Expressing annoyance at the investigating officer, the court observed that his failure in the PSM investigation would be written in his service record and he would not remain in service.

Justice Ramday observed that the FIA had become the “federal agency for protection of crimes”. Additional Secretary Industry and Production Tariq Shafi also appeared before the court.

“Why are you people not taking interest for the recovery of public money from culprits... it is the collective responsibility of all to work for the nation,” the CJ told the additional secretary.

The additional secretary said his ministry had referred the PSM scam case, in which former chairman Moeen Aftab was declared the main accused.

Applicant Barrister Zafar ullah also informed the court that acceding to the auditor general’s report, Rs 39 billion had been lost in the PSM in corruption.

He said the PSM had lost a total of Rs 48 billion from December 2008 to 2010.

 

[RabzonKhan]

EDITORIAL: Railway lands

Daily Times
January 27, 2011

The Public Accounts Committee (PAC) of the Nation Assembly has been told that the Rangers and the Pakistan Army are using the 1,000 acres of Pakistan Railways (PR) lands for agricultural and commercial purposes. The committee was hearing the issue of encroachment of eight acres of prime land belonging to PR in Rawalpindi by an army housing scheme. In some instances, the Army and Rangers took the trouble to getting the land on lease, albeit at throwaway price by using their clout, in others they simply occupied the land illegally. The Army and the Ranger have yet to pay where they legally leased the land. However, nobody has the guts to question them. The most telling remark was made by a railways official who, when asked to explain the mismanagement of lands, said, “It is odd to tell you how the men with guns behave with our officers.”

This is just one example of what is wrong with our polity and how the overarching influence of the military in national affairs has led to the deterioration of state institutions. In a hearing in September 2010, PAC had been informed that 4,231 acres of PR was in illegal possession of government departments and private individuals. Till recently a special parliamentary committee constituted by National Assembly Speaker Fehmida Mirza had been dealing with another high profile leasing scam of PR Royal Palm Golf and Country Club land to a private party during Musharraf regime, involving three retired generals. Reportedly, this case has been dropped by the ruling party for expedient reasons.

It is surprising that the PR has been consistently making losses and did not consider boosting its income by putting to use prime lands in its possession through out the country. Instead, more powerful institutions and private individuals have been using its property for their own benefit. The Privatisation Commission has now put up the details of PR on its website for prospective parties interested in its buying. Is this the fate all state institutions, which are purposely not improved so that these could then be sold at throwaway prices on the pretext that they are bleeding the national exchequer. Does it not give the impression of vultures patiently waiting for their victim to die in the desert before they pounce upon it? Although the PAC chairman has assured the PR officials that the elected body will stand by their beleaguered department and take this case to its logical conclusion, considering the fate of investigations into Royal Palm lands leasing, this assertion seems doubtful.

 

[RabzonKhan]

NICL scandal

Dawn
Jan 27 2011

A MULTI-billion-rupee scandal. Scions of powerful political families are implicated. The highest court in the land is in dogged pursuit. Protection to some of the alleged culprits is being extended allegedly by top officials. Junior law-enforcement officers are being ordered by the court to take action against their superiors if they are prevented from carrying out their duties. The National Insurance Company Ltd scandal which has swirled around the son of former Punjab chief minister Pervaiz Elahi continues to be an odd spectacle. Moonis Elahi has apparently decamped, first to Dubai and now London, while the DG FIA, Waseem Ahmed, is now being investigated for allegedly blocking the arrest of another suspect, a director of the NICL. At the heart of the scandal lie a couple of sweetheart property deals involving the NICL which were facilitated allegedly by Moonis Elahi during his father`s rule as the all-powerful Punjab chief minister. The cost to the public exchequer is believed to be in the range of Rs3.5bn, and Mr Elahi`s `share` was allegedly Rs220m.

Sadly, there is nothing `unusual` about such scandals. Powerful politicians in cahoots with shady financiers are routinely accused of bilking the state of untold sums. The only thing unusual about the NICL scandal is that it has stayed in the news so long and there appears to be some possibility of criminal wrongdoing being found and prosecuted. So it is perhaps not very surprising that now there are allegations powerful vested interests have swung into action in a bid to shield the public, and the courts, from the truth. The intersection between politics and big money remains as real as it is influential. What`s needed now is a clear commitment from the government to let the investigating officers pursue the matter into whichever corridors of power it leads to. Let the chips fall where they will.

 

[RabzonKhan]

EDITORIAL: Runaway Elahi

Daily Times
January 28, 2011

As far as corruption cases go, the National Insurance Company Limited (NICL) scam is one of the largest, one where the implicated are turning out to be from some of the highest ranks in the country’s institutions. The case involves many billions and the Supreme Court (SC) is leaving no stone unturned to uncover the truth behind the embezzlements. In the latest development of this ongoing case, that has seen the likes of former Chairman of the NICL, Ayaz Khan Niazi, arrested for major corruption, the spotlight has turned on the son of Punjab’s previous Chief Minister, Moonis Elahi. The FIA — who’s Director General Waseem Ahmed has also been implicated in failing to arrest influential culprits in this scam — has now been directed to summon Moonis. However, the young man — who is being accused of helping himself to Rs 220 million through property deals in which the NICL was involved — apparently fled to Dubai and has now, reportedly, run off to London, despite his name being put on the Exit Control List by the SC.

The names involved in this scandal are big and that makes their crimes even bigger. As the son of the former CM, Moonis took full advantage of his father’s position to defile the national exchequer. He and his aides demonstrated that when it comes to the world of the rich and powerful, public office exists only for private gain. The SC must not let these men get away with this huge fraud. Corruption has become so commonplace that, sadly, such cases fail to register more than just a blimp on the country’s conscience. That is why the SC’s decision to pursue the NICL scam is of utmost importance. Too many powerful politicians and their loyal aides have stolen the country’s money and stashed it in foreign accounts. Too many people are being ever burdened by an economy in severe morass because our leaders, and now it seems their offspring, are too busy robbing us blind.

No matter where the trail leads and no matter who else is implicated in a scam that involves political and financial institutions, the SC must bring all the culprits to book. This is paramount in setting an example so that others who wish to follow in Moonis Elahi’s footsteps think twice about political influence protecting them from the long arm of the law. The country needs justice at a time when it is slipping into the abyss.

 

[RabzonKhan]

Banker held for opening fake accounts to pay Moonis

Daily Times
February 02, 2011

ISLAMABAD: The Supreme Court was informed on Tuesday that a bank manager, Muhammad Malik, had been arrested for operating fake accounts to make payments to Moonis Elahi, son of former Punjab chief minister, Pervaiz Elahi.

A four-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry, has been hearing a suo motu case on alleged violation of rules by National Insurance Company Limited ex-chairman Ayaz Khan Niazi in the procurement of land on highly enhanced rates, causing a huge financial loss to the national exchequer.

During the hearing, FIA officials apprised the apex court that they had recovered Rs 73m from different accounts through which the money was embezzled. Sindh FIA Director, Muazzam Jah, said that the agency had detected more than 20 bank accounts which were used to transfer the embezzled amount of Rs 30m. He said that 20 organisations had been contacted for the identification of assets of Amin Qasim Dada, while red warrants had been issued to bring back three co-accused, namely Khalid Anwar, Khawaja Akbar Butt and Muhammad Iqbal, from the US, UK and Dubai. staff report

 

[somebozo]

What about recovering billions from zardari, gillani and all of their daciot ruling elite?

 

[RabzonKhan]

Waived off loans: Give us the record or face the music, CJ warns State Bank


By Qaiser Zulfiqar
Published: February 8, 2011

ISLAMABAD: The Supreme Court of Pakistan on Monday directed the State Bank to provide details of the loans waived off during the last two years, failing which its Governor would be summoned in court.

The State Bank’s counsel Iqbal Haider admitted before the bench that more than fifty thousand people had their loans written off in violation of rules and regulation since 1971.

Justice Sair Ali asked for details of loans written off from 1971 to date. The court denied Haider’s request to constitute a commission for compiling the record of the loans written off by various banks.

A four-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry resumed the hearing of a suo motu case.

It is the State Bank’s responsibility to protect the commercial banks’ interests under section 40-A of the Banking Companies’ Ordinance. However, it is bound to take action against the banks if their activities are detrimental to the public interest in pursuance of section 41, Justice Ramday remarked.

“We would like to assist the State Bank but it appears that our help is not wanted,” the Chief Justice observed. It is worrisome that the State Bank has yet to raise this issue with commercial banks.

The Chief Justice said that Redco Textiles and Indus Sugar Mills will be taken as test cases.

“The court can go to any extent to ensure the return of the nation’s wealth,” the Chief Justice remarked during the course of hearing. “It is not as if those who got their loans waived off are dying of hunger; their businesses are flourishing.” If the law and order is to improve, the economy has to be strengthened, The Chief Justice said.

The court adjourned the hearing till February 14.

Published in The Express Tribune, February 8th, 2011.
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[RabzonKhan]

Der aye durust aye! (better late than never).


Govt, PML-N agree to launch loan recovery campaign

* Hafeez Shaikh says top 100 loan defaulters of each commercial bank to be targeted in first phase of loan recovery drive

Daily Times
By Sajid Chaudhry
February 09, 2011

ISLAMABAD: The government and the Pakistan Muslim League-N (PML-N) on Tuesday agreed to launch a drive to recover loans from commercial banks’ defaulters who got their loans written off on political basis or by using their influence, since 1971.

The decision to start a loan recovery drive was taken with the consensus of the PML-N and government teams that met in connection with the implementation of the 10-point agenda presented by PML-N chief Nawaz Sharif. State Bank of Pakistan (SBP) Governor, Shahid Hafeez Kardar, briefed the meeting on the details of the loans waived off during the last 40 years.

After the meeting, Federal Minister for Finance, Dr Hafeez Shaikh, informed reporters that both the sides had agreed upon launching a recovery campaign against those who got their loans waived off since 1971. “Top 100 loan defaulters of each commercial bank will be targeted in the first phase of the drive,” he said.

The finance minister led the government’s side while the PML-N party was headed by Senator Ishaq Dar. According to sources, both the sides decided to continue holding meetings for the next three days to reach a consensus on the implementation of the PML-N’s 10-point agenda.

The finance minister told the journalists that the meeting was informed that out of the total two million potential taxpayers in the country, the Federal Board of Revenue (FBR) would hunt some 0.7 million new taxpayers in the first phase of its drive being launched to broaden the tax net. “Details on expenditures and income of potential taxpayers have been compiled by the authorities concerned for the purpose,” he maintained.

The meeting was informed that due to the expeditious refund payment system, the FBR had been able to clear a backlog of Rs 18.5 billion refunds under the new system, the minister added. PML-N’s Ishaq Dar, while speaking to the media, claimed the rightsizing of the federal cabinet would be done in a significant manner. He said if the federal government desired the Punjab government would also cut the size of its cabinet, which had already been reduced from 40 to 16.

Dar said the federal government would present its plan to cut expenditure to 30 percent to the PML-N on Wednesday (today). It would also inform its coalition partner about the measures being taken for resource mobilisation to reduce the budget deficit.

 

[RabzonKhan]

FIA raids Kazmi's house

The Express Tribune
February 10, 2011

ISLAMABAD: A team of the Federal Investigation Agency (FIA) on Thursday raided the house of former minister for religious affairs Hamid Saeed Kazmi after a civil court in Islamabad issued arrest warrants for him in the Hajj corruption case.

Kazmi was not at his house when the team raided his house.

Earlier today, Islamabad civil court judge Aslam Gondal issued the warrant for Kazmi, reported Express 24/7 correspondent Faisal Shakeel. The development came after today’s (Thursday) case hearing on the scam.

During the hearing, the Federal Investigation Agency (FIA) officials investigating the case informed the Supreme Court that they have found evidence of corruption by Kazmi.

The officials also asked the court to question Prime Minister Yousaf Raza Gilani’s son Abdul Qadir Gilani in the scam case.

The Religious Affairs Secretary, who also appeared in court, stated that the ministry has compensated 96 per cent of the pilgrims affected by the scam in the Hajj arrangements. He said no middle man will be hired for the government’s Hajj operation from next year and that the Hajj quota will be alloted on merit.

The court ordered the Religious Affairs Secretary to frame a transparent Hajj policy.

The FIA is probing into an embezzlement of millions of rupees in Hajj affairs, the crossfire over which provoked Prime Minister Yousaf Raza Gilani into axing two federal ministers from the cabinet three days back.

The corruption and irregularities in the Hajj scam which had put an extra burden of Rs35,000 on each pilgrim this year and led to the sacking of former federal minister Hamid Saeed Kazmi and Azam Swati has sent ripple effects through the political landscape of the country ending up in the JUI-F quiting from the coalition.

A Saudi prince had previously written a letter claiming that Pakistani government officials had refused his offer of a cheaper place of accommodation, opting instead for a more expensive residential area. The Chief Justice had taken suo moto notice of the case.
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[RabzonKhan]

 

[RabzonKhan]

 

[RabzonKhan]

Police foundation fraud: MNA agrees to refund Rs5.8 billion

By Rauf Klasra
Published: February 23, 2011

ISLAMABAD: In a major breakthrough, the man at the centre of a multi-billion-rupee fraud in the National Police Foundation (NPF) has agreed to pay back Rs5.8 billion in cash or kind following comprehensive investigations into the affair by a team of the Federal Investigation Agency (FIA).

PML-N MNA Anjum Aqeel Khan has agreed to pay a sum of Rs5.8 billion to the NPF after his confession before an FIA joint investigation team that he had caused huge financial losses to the foundation as its real estate broker.

Aqeel Khan, who later joined politics in 2008, agreed to cough up the money two days before the hearing of the case in the Supreme Court on February 24.

The written undertaking by Anjum Aqeel will be submitted before Chief Justice Iftikhar Muhammad Chaudhry on Thursday. The MNA has given a written undertaking to the FIA team in Lahore after four days of comprehensive investigations. The chief justice had taken suo motu action in the case on the basis of a story filed in The Express Tribune on January 30.

Meanwhile, a former managing director of the NPF, Iftikhar Ahmad Khan, has also been summoned by the FIA team for investigations to Islamabad on Wednesday along with other high-ranking officials who were allegedly part of this fraud.

The Express Tribune had reported that a confidential official inquiry report, which was submitted to Federal Interior Secretary Qamar Zaman Chaudhry earlier this month, said that MNA Anjum Aqeel Khan was involved in a six-billion-rupee land fraud in which he was aided by four former NPF officials, including former managing director Iftikhar Ahmed Khan. Others named in the report are former housing additional directors Abdul Hannan, Khuda Baksh and Laeeq Ahmed Khan.

The interior ministry had constituted an inquiry to probe the scam and submit its report to the Supreme Court on Thursday. A joint investigation team comprising officials of the FIA and the National Police Foundation was formed which investigated the matter.

Anjum Aqeel and NPF officials sat face to face to reach a consensus as to how much loss was actually caused by Anjum Aqeel Khan. He then gave in writing to the FIA team that he would either hand over land worth Rs5.8 billion or make a cash payment to the Foundation to settle the eight year old dispute.

FIA official Zafar Qureshi told The Express Tribune that in the second phase of the inquiry, it would be examined as to who else had collaborated with the MNA to rob the foundation of its assets worth billions of rupees and cases would be registered against those found guilty of the crime.

Published in The Express Tribune, February 23rd, 2011.

 

[RabzonKhan]

Affluent politicians

Dawn
March 14 2011

A REPORT published in this newspaper on Saturday seems to confirm the widely held belief that Pakistan is a nation with millions of poor people ruled by some extremely wealthy politicians. According to a statement of assets and liabilities supplied to the Election Commission, it has emerged that the PPP`s Gul Mohammad Lot and Ammar Ahmad Khan are among the richest men sitting in the Senate of Pakistan, with property and investments adding up to billions of rupees. These gentlemen are not alone as the JUI-F`s Azam Khan Swati and the BNP-A`s Israrullah Zehri are also considerably well-off. These and other members of the upper house also lay claim to thousands of acres of land, expensive properties in Pakistan and abroad as well as luxury vehicles.

Yet it is clear that this is not the whole picture as there are several politicians who may have even more money but have not declared their assets. The posh cars in the National Assembly parking lot are one indication of how many of our parliamentarians can afford to live it up. So, credit must go to those parliamentarians who have declared their assets. However, the fact remains that the system lacks transparency. For instance, one wonders how a former civil servant has come to own property in London worth over a million pounds, as is the case with the current interior minister, who is also a senator. There is nothing wrong with having or making money, as long as it has been acquired in a legitimate manner and taxes are paid. But therein lies the problem.

One figure says that the total revenue that will be lost due to tax evasion in the fiscal year ending June 30, 2011 adds up to over a trillion rupees. According to another estimate, fewer than two per cent of Pakistanis pay income tax. In fact, tax evasion is endemic in Pakistan, especially amongst the financial elite, many members of which sit in the nation`s assemblies. The Federal Board of Revenue and the Election Commission need to properly investigate whether taxes have been paid on parliamentarians` income and assets. The National Assembly`s Public Accounts Committee must also play a more active role in this regard. If bureaucrats can be questioned for alleged financial misdeeds, why not MNAs and senators? Of course, they are not the only ones who should be censured: landlords, generals and business tycoons who live beyond their means and don`t pay taxes all need to answer to the taxman. Yet our elected representatives have the added responsibility of leading by example of which paying their due share of taxes is one aspect.

 

[RabzonKhan]

Kazmi arrested in Hajj corruption case

Daily Times
March 16 2011

RAWALPINDI: Former federal minister for religious affairs, Hamid Saeed Kazmi, was arrested from the courtroom after cancellation of his interim bail from the special court in the Hajj corruption case on Tuesday. The Federal Investigation Agency (FIA) arrested Kazmi and shifted him to the FIA Zonal office lockup in Islamabad. The FIA will present Kazmi in court today (Wednesday) to get his physical remand. Special Judge (Central) Sohail Nasir conducted the hearing of the case. The court in its verdict said that Kazmi was directly involved in the Hajj corruption and his bank accounts and property also proved the corruption charges against him and dismissed his plea for extension in interim bail. Kazmi’s counsel, Khurram Latif Khosa, argued in court that Kazmi was not involved in the Hajj corruption case and he was not nominated in the FIR as well, adding that two witnesses in their statements to the FIA had exonerated him of any charge as Kazmi was being victimised on political basis. The counsel said the FIA had failed to provide any evidence against him and his bail may be extended and termed all the allegations against Kazmi fabricated and baseless. FIA (Legal) Additional Director, Khalid Butt, presented the letter for appointing Hamid Faiz as a supervisor of buildings in Saudi Arabia. He said that red warrants were issued by the magistrate after getting all the proofs. The court reserved the decision on extending Kazmi’s bail for an hour. staff report

 

[RabzonKhan]

EDITORIAL: Hajj scam

Daily Times
Mar 18 2011

In the latest hearing of the Hajj corruption case in the Supreme Court (SC), embarrassing details of more people being involved in this scam have emerged. Allegedly, Minister of State for Religious Affairs Shagufta Jumani also benefited from the scam. Meanwhile, the Federal Investigation Agency has been given the physical remand of Syed Hamid Saeed Kazmi, who was unceremoniously removed from the post of federal minister of religious affairs following the eruption of this scandal and suo motu notice of this case by the SC. In 2010, Hajj pilgrims had to face difficulties because proper arrangements had not made for their accommodation and transportation despite charging from them extra money. Recently, another aspect of this scandal has been highlighted by the letter of an official of the ministry of religious affairs to the interior ministry for the recovery of about 15 million rupees spent on the ‘free Hajj’ of about 450 politicians, journalists, etc, and their families, in 2009 and 2010. These individuals were sent for ‘free Hajj’ on the recommendations of the interior ministry. It is questionable whether such a Hajj fulfilled the religious obligations because Hajj is mandatory only for those who can afford it from their own resources and are not in debt. It would be interesting to see what our religious scholars and courts have to say on the status of religious freebies on government expense, which are essentially paid for by the people. It is also very embarrassing that some senior journalists, who are supposed to be the watchdogs of state and society, have been named in this scandal. Further, what motives did the interior ministry have in sending these people on a ‘Rehmani Hajj’ — as it has come to be called — unless it had some axe to grind? Rehman Malik must be made answerable.

This is not the first time that such a thing has happened. In past years too, public functionaries are known to have gone for Hajj along with an entourage of friends and families on state expense, but perhaps this is the first time that a large number of journalists have been named. It is imperative that the SC thoroughly investigate this aspect of the matter in the high level investigations it is holding into this scam and recover all the money that has been spent from the public exchequer for this purpose.