NLC scam: LHC overturns retired general’s dismissal

Maj-Gen (retd) Akhter was dismissed on corruption charges

RAWALPINDI:

The Lahore High Court (LHC) on Wednesday set aside the dismissal of Major-General (retd) Khalid Zahir Akhter from the army over his involvement in the multi-billion-rupee National Logistics Cell (NLC) scam.

In his short order, Justice Ibadur Rehman of the LHC Rawalpindi bench accepted a petition filed by Akhter, who had also served as the NLC director general.

Akhter in his petition filed through Advocate Wasif Niazi contended that military authorities had illegally dismissed him from the army and discontinued the benefits he was entitled to on retirement. He told the court that he retired from the army as a major-general on February 2, 2008 and that military authorities recalled him in September 2011 to investigate his alleged role in the NLC case.

“The [military] authorities did not initiate an inquiry of trial against me, and announced my dismissal on August 5, 2015 without trial,” Akhter said. He added that under the Army Act, military authorities could only dismiss him from the army after a proper trial.

“I was dismissed through an administrative action which is illegal and unlawful.”

Akhter also argued that since he retired in February 2008, he was not at the helm of NLC affairs when the organisation suffered a huge financial loss in the stock exchange.

He requested the court to declare his dismissal unlawful and without authority.

The defence ministry, in its response, told the court that the army chief has the authority to dismiss any military officer found guilty in any inquiry. The ministry also contended that the Constitution did not allow the high court to hear Akhter’s case since he was a military officer and was dismissed by the competent authority.

On August 5, a committee of high-ranking army officers probing the NLC scam concluded that Akhter, another retired general and a civilian officer “were indeed responsible for making incorrect decisions of investments in violation of NLC rules and regulations thereby causing losses to the organisation.”

The Inter-Services Public Relations (ISPR) announced the same day that the two officers had been punished under the Army Act in light of the panel’s findings.

“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 had said. The other general was awarded ‘Severe Displeasure (Recordable)’ which is a disciplinary award due to an offence of lesser degree.

The NLC 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 organisation. 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.

Published in The Express Tribune, December 24^th, 2015.