Police report sheds new light on Bank of Punjab saga

Supreme Court tells NAB to start a probe in light of the report.

The Supreme Court on Wednesday directed the National Accountability Bureau (NAB) to start a probe into the Bank of Punjab scandal in light of a report compiled by the police.

The order was passed as a three-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry heard the case.

The investigation report, prepared by Additional Inspector General of the Punjab Police Aftab Sultan and submitted before the bench, said that the then chief secretary took a long leave and served in the company of Chaudhry Pervez Elahi.

The bank’s account books showed a loss of Rs77 billion but the figures were later tampered with. New loans were given to get back old loans, the report said.

The biggest monetary fraud in the country’s history was perpetrated in this manner during 2005-2007. The loans had been waived off after awarding.

According to the report, the Bank of Punjab apparently sustained a loss, but the bank’s administration kept showing it to be making profit. The report not only showed Rs9 billion corruption of Haris Steel Mills but also unearthed several other scandals.

Interestingly, the bank’s board of directors was appointed by Hamesh Khan, who not only awarded a loan to the Haris Steel Mill, but granted loans of billions of rupees to other companies as well.

The report also said that the bank submitted falsified reports to the State Bank of Pakistan regarding its performance.

After reading the report, Justice Sair Ali remarked: “How the bank remained intact when all this happened. According to the report, it was not a fraud of Rs9 billion but a Rs77 billion fraud.”

“What is happening in this country, where should the account holders go?” the chief justice remarked.

The advocate-general of Punjab informed the court that a reference could not be filed because of the unavailability of the NAB chief.

Chief Justice directed the authorities concerned to accelerate their investigations. The CJP also ordered the advocate-general to make the report public.

Later, the court adjourned hearing for three weeks.

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