Embezzlement: Punjab releases details of Midas scam

The Punjab government has released details of the Midas embezzlement case in an audit report that has been made public, said Pervez Rashid, the spokesperson for the provincial government.

According to the report, Midas, an advertising agency based out of Lahore, had secured a contract with the government of Punjab to manage the promotional campaign of ‘Parha Likha Punjab’ (An educated Punjab), a government campaign to promote education and attain 100 per cent literacy and school enrollment in the province.

The agency managed the promotional campaign as promised, but sent in bills for reimbursement for its services twice, even after they had been paid by the provincial government, effectively doubling the cost of the advertising. The loss to the provincial government is estimated at Rs632.5 million.

Rashid refused to comment on the identities of the people involved in defrauding the provincial exchequer at this stage, saying that the investigation is ongoing. He added that it was up to the courts to determine the culpability of individuals in the case, asking the media to allow the law to take its course.

The provincial government has already begun the process of trying to recover the money that was embezzled by the advertising agency, writing a letter to the All Pakistan Newspapers Society asking them to help arrange for a return of funds that were misappropriated.

It is unclear whether newspapers will be willing to return any money that they may have received from Midas, especially if they believed that they were acting in good faith with a company that had legally been authorised by the Punjab government to conduct the transactions involved in the investigation.

Published in The Express Tribune, February 21^st, 2011.