Customs official nabbed in Rs2.6 billion scam

Accused is nominated as key suspect in almost 40 corruption references

LAHORE: The National Accountability Bureau (NAB) Lahore on Friday arrested Custom Deputy Superintendent Muhammad Sohail Butt from Sialkot. The accused was allegedly involved in a Rs2.6 billion betel leaf import scam.

The accused had been appointed as deputy superintendent during 2011-12. During that tenure, he misused his authority in evading and miscalculating customs duties liable on import of betel leaves under the Pakistan-Sri Lanka Free Trade agreement. Butt has been nominated as a key accused in almost 40 corruption references filed before an accountability court in the same case. It was estimated that billions of rupees were embezzled in the said case.

According to the evidence available with NAB, the accused evaded or miscalculated custom duty liable on betel leaf which caused losses worth billions of rupees to the national kitty.

NAB officials have obtained the physical remand of the accused till March 31 for further investigations.

Previously in the case, on October 24, 2017, NAB Lahore arrested nine custom officials, clearing agents and betel leaf importers. The arrested suspects were identified as Ghulam Murtaza, Muhammad Fayyaz, Muhammad Shakeel, Khairat Ali, Shahid Hussain Bhutta, Rehan Elahi, Rashid Yaqoob, Muhammad Saeed and Abdul Khaliq Zaki. The investigation revealed that certain goods declaration (GDs) reflected that duty and taxes were paid in full with the National Bank of Pakistan. However, no amount was deposited by the accused. Duty or taxes paid in the National Bank of Pakistan were far less as compared to the amounts shown on GDs, which showed actual legible duties and taxes.

Custom and bank officials allegedly did this by adding extra digits in front of the amount actually deposited in the bank, NAB investigations had revealed. Duty and taxes were charged on far less weight of betel leaves as against the weight manifested in airway bills and delivery orders etc. According to further details, 58 firms remained engaged in import of betel leaves with the help of customs clearing agents at Lahore Airport.

On December 5, NAB had arrested a betel leaf importer identified as Rashid Shams. Reporting the ground of his arrest, NAB had said that he was involved in evading or miscalculating custom duty liable on import of betel leaf in an infamous Rs2.6 billion custom duty corruption scam.

Under the NAB investigations, the suspect continued importing betel leaf during 2008-12 through Al-Shams Traders and managed to embezzle Rs16.58 million by paying far less duty in a government designated bank as compared to the amounts shown on the hard copies of goods declaration.

On December 24, 2017, NAB claimed to have arrested two more betel leaf importers, identified as Sheikh Muhammad Naseem and Aqeel Ahmed, for causing a loss of Rs26.757 million to the government kitty by evading, miscalculating custom duty liable on import of betel leaf in Rs2.6 billion corruption case being probed with NAB Lahore region.

Published in The Express Tribune, March 31^st, 2018.