Army reprimands Maj Gen (retd) Khalid Akhtar, Lt Gen (retd) Muhammad Afzal for making illegal investments. PHOTO: FILE
A long-delayed but much awaited military probe into the Rs4.3 billion National Logistics Cell (NLC) scam on Wednesday found two former generals guilty of illegal investments in the stock exchange.
“Two retired general officers and one civilian officer Saeedur Rehman were indeed responsible for making incorrect decisions of investments in violation of NLC rules and regulations thereby causing losses to the organisation,” concluded the inquiry conducted by a committee of high-ranking army officers.
In a statement issued on Wednesday, the Inter-Services Public Relations (ISPR) said that in light of findings of the inquiry, the two accused retired generals were punished under the Pakistan Army Act.
“Maj Gen (retd) Khalid Zahir Akhter had 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 allied facilities,” the ISPR said.
It added that Lt-Gen (retd) Muhammad Afzal Muzaffar had been awarded ‘Severe Displeasure (Recordable)’ which is a disciplinary award due to an offence of lesser degree, such as violation of procedures but not for personal gain.
Lt Gen (retd) Khalid Munir Khan, meanwhile, has not been found involved in any financial irregularity or serious misconduct and therefore stands absolved of all charges, according to the military’s media wing.
The scam first came to light in 2009 when the Public Accounts Committee (PAC) observed violations in implementation of the instructions of the board of directors’ and in rules and regulations with regards to investment made by the NLC. The investment which was made between 2004 and 2008 had caused the NLC a loss of Rs1.8 billion. Besides borrowing money from commercial banks at a high mark-up, the then NLC bosses had allegedly used pensioners’ money for the business.
In 2011, the PAC had directed the National Accountability Bureau (NAB) to proceed against three army generals and two civilians for illegally investing Rs4.3 billion in the stock exchange. Complying with the order, NAB on February 23, 2012 initiated an inquiry against Lt Gen (retd) Khalid Munir Khan, Lt Gen (retd) Muhammad Afzal Muzaffar, Maj Gen (retd) Khalid Zaheer Akhtar, Najeebullah Khan and Saeedur Rehman.
However, NAB had recently alleged that military authorities were not cooperating in its investigations into the scandal.
Giving details, the ISPR said in November 2010, the army had launched a court of inquiry that was followed by the recording of the summary of evidence in September, 2011. “However, the decision remained pending as some additional documentary evidences were provided by the retired generals, which needed scrutiny and time to establish their veracity,” it added.
Army chief General Raheel Sharif instructed concerned quarters to dispose of the case on a fast-track basis. Hence, the case was re-investigated by a committee of high ranking officers. The committee reached its conclusion after months of exhaustive sessions, evaluation of record of investments and interviews of all the witnesses.
The military’s media wing said the army in line with its traditions had always and would continue to maintain the highest standards of accountability, justice and fair play. A military official speaking on condition of anonymity said the decision indicated that Gen Raheel had a ‘zero tolerance’ for any corrupt practices within the army.
Published in The Express Tribune, August 6th, 2015.
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