NLC scandal: Army to act against corrupt generals

Military leadership shows willingness to penalise generals involved in Rs1.8 billion corruption.

ISLAMABAD:

In what appears to be an unprecedented move, the military leadership has shown a willingness to penalise generals involved in the Rs1.8 billion corruption scandal at the Army-owned National Logistics Cell (NLC).

Chaudhry Nisar Ali Khan, chairman of the parliamentary Public Accounts Committee (PAC), said that he had received assurances from the highest levels of the military command that the “defining decision will be taken in line with PAC recommendations.”

The auditor-general had discovered that the former management team at the NLC took on Rs4.8 billion in commercial loans for the corporation and, against government regulations, made investments.

Two inter-departmental committees, formed to investigate the matter, determined that three army officials – Lt Gen (retd) Afzal Muzaffar, Lt Gen (retd) Khalid Munir Khan and Maj Gen (retd) Khalid Tahir Akthar – and a civilian chief financial officer, Saeedur Rehman, “contravened all government rules and even violated former Prime Minister Shaukat Aziz’s instructions.

The PAC rejected one and endorsed the other report that recommended administrative action against the generals and an attempt to recover the amount lost.

An official who was formerly involved in the inquiry told The Express Tribune that the military leaders at GHQ had committed to taking action against involved officials but that they cannot recover the Rs1.8 billion. The GHQ may instead impose other, unspecified penalties.

Published in The Express Tribune, March 20^th, 2011.