NAB recovers Rs1 billion from ex-accounts officer

The former official of Hyderabad has been remanded to NAB’s custody for 14 days

HYDERABAD: The National Accountability Bureau (NAB) has seized cash and assets worth over Rs1 billion from a former additional district accounts officer (ADAO) from Hyderabad.

ADAO Mushtaq Ahmed Shaikh, who was remanded for 14 days to NAB's custody by the accountability court in Hyderabad on Saturday, was arrested from Karachi on Friday.

Shaikh's alleged involvement in this massive embezzlement of public funds surfaced after the arrest of a retired police constable Muhammad Yousuf Khanzada and his son, police constable Arif Yousuf, from Hyderabad on February 26.



According to NAB spokesperson Rizwan Soomro, Shaikh led the NAB team to his residence, farm house, wedding hall and other businesses in Hala, Matiari district, after his arrest. "Several properties worth over Rs1 billion were found to be in possession of the accused person that have been acquired and accumulated from proceeds of the embezzlement of government funds, held in his own name and in the names of his close relatives and benamidars [unknown persons]," reads a press release issued by NAB.

The recovered possessions include Rs17.3 million in cash, 37,016 Saudi Riyals, three kilogrammes of gold, nine vehicles, papers of two bungalows in Defence Housing Authority (DHA) Karachi, four plots in DHA Karachi and Bahria Sports Karachi. Three houses and two flats in Hyderabad, two houses and one 45-acre farmhouse in Matiari district, 146 livestock animals, saving certificates, 31 cheque books, two expensive wrist watches and hundreds of original treasury bills have also been recovered.

"The preliminary interrogation has revealed that while the accused person misused his authority by fraudulently preparing bogus bills in favour of fake beneficiaries under the heads of pensions, government provident funds, salaries and allowances. He got them processed and cleared through various bank accounts opened in connivance with various bankers," claims NAB.

"The accused has remained a lynchpin in organised crime and the process of money laundering. He has been operating a large gang consisting of private persons and incumbents of various district accounts offices who ... get bogus payments cleared and withdrawn."



Shaikh's involvement in official matters continued even after his retirement, as he acted as a facilitator for kickbacks. His alleged corruption continued for many years but the recent introduction of automated systems for process of treasury bills exposed this corruption.

"The regulatory offices have not been successful in placing curbs [on such actions]. As a consequence, the tax money and precious government exchequer is being squandered," NAB observed.

Shaikh and Khanzada have also been booked in another NAB reference filed on December 10, 2016. The recently appointed Pakistan Peoples Party Hyderabad information secretary, Ahsanullah Abro, a sub-accountant and Ayaz Ahmed Abro, a former accountant in the district account office, are also nominated in the reference, along with a head constable, Abu Bakar.

The reference was filed after the accused persons failed to deposit the amount under the voluntary return clause of the NAB Ordinance, 1999. They only deposited Rs97 million from 2012 to 2013. Around 87 million is remaining liability of that reference in which these accused persons have been sent up for trial, the NAB spokesperson informed The Express Tribune.



NAB recovered a huge sum of cash, assets and properties from Khanzada and his son, who were arrested from their residence in Latifabad, Hyderabad on February 26. These include property documents of 10 plots, three shops, five flats, six bungalows and 120 receipts of payments to a housing scheme, 10 vehicles, Rs3.8 million in cash, Rs182,707 in Saudi, UAE and Iranian currencies, as well as prize bonds worth Rs1.2 million.

Gold worth over Rs2 million, 20 bank accounts with transactions up to Rs70 million in the last few years and the sale deed of a plot worth Rs28 million were also found in possession of the two constables.

"The preliminary interrogation has revealed that both the arrested persons have been working in connivance with certain government officials and also in capacity of front-men for parking of cash and buying and selling of properties in their names and in the names of other unknown. They did this on their own behalf and on the behalf of certain officials to act as an important part of money laundering process," said NAB in a statement issued last month.