NICL scam: Investigators reluctant to question top bureaucrats

Committee directs secretary to independently evaluate the properties without consulting or involving NICL management.

LAHORE: Investigators are yet to question two top bureaucrats – the federal commerce and interior secretaries – and some other influentials allegedly involved in the Rs5.36 billion National Insurance Company Limited (NICL) scam, The Express Tribune learnt on Sunday.

A three-member bench of the Supreme Court, headed by the Chief Justice Iftikhar Muhammad Chaudhry, is hearing the case.

The FIA teams from Punjab and Sindh are likely to submit reports in five cases related to the scam on Monday. Officials of both teams are learnt to have arrived in Islamabad.

A two-member team from Karachi has also reached Islamabad from Dubai on Monday.

Federal Commerce Secretary Zafar Mehmood appeared before the National Assembly’s Standing Committee on Commerce in the first quarter of 2010 when it was alleged that the NICL management had committed misappropriation in the purchase of properties in Lahore, Karachi and Dubai. The committee had directed the secretary to independently evaluate the properties without consulting or involving the NICL management and submit its report.

According to the secretary commerce’s evaluation, the price paid by the NICL for these three properties was much less than their market value and he did not find any fault with the purchases.

When the matter was considered closed, the apex court took suo motu action and the same secretary registered cases as a complainant, instead of being nominated as an accused because he had earlier cleared three of these transactions.

Sources said that despite knowing this, FIA appeared to be reluctant to question the commerce secretary.

These three deals/transactions had been declared transparent by the federal Commerce Secretary Zafar Mehmood and this matter was closed by the National Assembly’s standing committee in April 2010 after the commerce ministry determined that the NICL had paid much below the prevailing market prices for the three properties.

When the apex court took suo motu notice in one of the five transactions, the commerce secretary deliberately concealed the fact that in fact it was him who had actually cleared the NICL purchases. And because of this, an alleged accused has become a complainant in these transactions. Federal Secretary for Interior Qamaruz Zaman Chaudhry is also said to be involved in these deals because he was a member of the NICL’s board of directors, sources said.

Published in The Express Tribune, January 10^th, 2011.