Minister steps down as NAB gets his 10-day custody

Accountability watchdog claims Sibtain Khan awarded illegal contract to a firm in 2007

LAHORE: An accountability court on Saturday remanded Sibtain Khan in the National Accountability Bureau’s (NAB) custody for 10 days as he stepped down as Punjab minister for forestry, wildlife and fisheries.

NAB arrested Sibtain Khan on Friday over charges of corruption and illegal award of contracts during his previous tenure as Punjab minister for mines and minerals in 2007.

After the arrest he gave his resignation to Punjab Chief Minister Usman Buzdar asserting that he would contest his case on merit. Buzdar on Saturday reportedly accepted his resignation.

During the proceedings on Saturday, NAB prosecutor told the court that the Earth Resource Pvt Ltd (ERPL), which was awarded the ‘illegal’ contract, was not registered.

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“It only had a capital of Rs2.5 million and the documents it provided were also forged. The accused had not issued any tender before granting the contact to the ERPL,” he added.

Khan's counsel rejected the allegations and said NAB is not telling the whole truth.

“NAB had earlier stopped an inquiry into the case because the national treasury had not suffered any loss from the contract. It also submitted its report to the Lahore High Court,” he said.

The accused told the court that he had received a request which he had forwarded to the relevant departments. He said NAB has not arrested anyone else involved in the matter and that the anti-corruption body should take everyone who had signed for awarding the contract into custody.

NAB alleges that Sintain Khan while serving as Punjab minister for mines and minerals in 2007 was found involved in illegal award of a multi-billion-rupee contract for 500 metric tonnes of iron ore in Rajwah and Chiniot to a company of his choice – the ERPL.

The award of contract was in violation of laws. The company had been awarded the contract despite having no previous experience in mining. NAB statement issued in this regard also added that no other company was considered during the bidding process.