Army sentences two retired generals for Rs4b NLC scam

Maj Gen (retd) Khalid Akhter stripped off rank; Lt Gen (retd) Khalid Munir absolved; Civilian also held responsible

In an unprecedented move, the army has held two retired generals and one civilian officer of the National Logistic Cell (NLC) accountable for illegally investing Rs4.3 billion in the stock market and causing a loss of Rs1.8 billion in the process.

“Two retired General Officers and one civilian officer Mr. Saeed ur Rehman were indeed responsible for making incorrect decisions of investments in violation to NLC rules and regulations thereby causing losses to the organization during this period,” an ISPR statement issued on Wednesday stated.

The decision was made by an committee of high ranking officers, following army chief General Raheel Sharif’s orders to expedite the case.

As a result, Maj Gen (retd) Khalid Zahir Akhter has been “‘Dismissed from Service’, which implies forfeiture of rank, decorations, medals, honours, awards, seizure of pension, recovery of personal gains, cancellation of service benefits and all other facilities. Lt Gen (retd) Muhammad Afzal Muzaffar has been awarded “Severe Displeasure (Recordable)” which in essence is a disciplinary award due to an offence of lesser degree ie violation of procedures but no personal gains.”

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Meanwhile, according to the statement, Lt Gen (retd) Khalid Munir Khan has not been found involved in any financial irregularity or serious misconduct and therefore stands absolved from all charges.

In February 2009, the Public Accounts Committee observed violations in implementation of Board of Directors’ Instructions and rules and regulations with regards to investment made by NLC.

Consequently, the Planning & Development Division secretary constituted an inquiry committee, which did not accuse any individual for embezzlement or misappropriation. However, the committee highlighted financial irregularities, lack of transparency and failure to observe rules and regulations caused by reckless decisions, the statement read.

Upon conclusion of the inquiry, the case was referred to the defence ministry.

In November 2010, the army commenced a court of Inquiry, followed by a recording of Summary of Evidence in September 2011. However, the decision remained pending, till army chief Gen Raheel ordered to expedite and dispose of the case in a transparent manner.

The statement concluded that the “army, in line with its traditions, has always and will continue to maintain highest standards of accountability, justice and fair-play.”