NAB files reference in Rs5.8b M6 land acquisition scam

Nineteen individuals had squandered funds allocated by NHA to buy land for motorway

HYDRABAD:

The National Accountability Bureau on Wednesday filed Rs5.8 billion corruption reference concerning the M6 Sukkur-Hyderabad Motorway land acquisition scam, nominating 19 individuals including public servants.

The reference was filed in the Accountability Court Hyderabad after repeated warnings of the court. The scam, which occurred in Matiari and Naushehro Feroze districts, had come to the spotlight eight months ago in November, 2022.

The National Highway Authority (NHA) had deposited the embezzled funds in the accounts of deputy commissioners of Matiari and Naushehro Feroze districts to buy land for the project. However, the public servants withdrew the amount illegally.

NAB, in its reference, charges former deputy commissioner of Matiari Adnan Rashid, former assistant commissioner of Saeedabad taluka Mansoor Ali Abbassi, five officials of Sindh Bank, a Tapedar, a Supervising Tapedar, an accountant of DC office and nine private persons have been charged.

The bureau has arrested 12 of the accused including the DC and AC, while five others are absconding, and two have obtained bails.

Interestingly, the reference against the nominated suspects belonging to Naushehro Feroze district has not been filed so far. The NAB assured the court that they would file a supplementary reference in this regard.

"The accused persons have embezzled an amount of Rs5.8 billion in Matiari and Naushehro Feroze," reads the reference submitted by NAB Karachi director general.

The NAB Karachi and Sukkur were conducting separate inquiries of the scam for Matiari and Naushehro Feroze until the probe was merged on May 4.

As per the reference, a camp office for the land acquisition was set up at the DC House Matiari and that the same office had issued the cheques to the private accused persons. "… the accused persons with criminal intent flagrantly violated the acquisition process by making payment of land acquisition in derogation of the acquisition process and laws." The accused officers did not even pass the award under section 11 of the Land Acquisition Act.

The DC and AC accused an account for the land purchase payments in the Sindh Bank but without obtaining permission from the Sindh Finance Department. The permission is mandatory under regulation number 1 (21) of anti-money laundering law and the State Bank of Pakistan's guidelines.

The two officers engaged the private persons Rehmatullah Solangi, Asghar Jatoi, Ashique Hussain Kaleri, Aslam Peerzada and Zawar Shah for misappropriating the funds through open and bearer cheques. By doing so they also violated guidelines of the Sindh Board of Revenue.

The Matiari DC and AC in connivance with 11 other accused persons withdrew Rs2.37 billion in the garb of buying the land for the construction of the motorway which is part of the CPEC road network. Rashid and Abbassi withdrew a huge sum of Rs1.8 billion in just a matter of eight days in October last year from the land acquisition account. "The DC being the land acquisition officer had issued seven separate letters to the bank to release that amount."

Another sum of Rs553 million was 'illegally' paid to 22 land owners as compensation for land but without passing the award. "The DC and AC also violation clear directions of the NHA to not to make payment above Rs10,000 to any third person other than the land owners." But even that direction was disregarded. The NAB has also blamed the accused in the reference for drawing cash from the Sindh Bank's account.

A resident of Lahore, Mazhar Khan, confessed to the NAB's inquiry team that Rashid and Abbassi had given him Rs430 million for 'safe keeping'. The bureau claimed to have recovered Rs420 million out of Rs430 million from the residence of Abbassi.

The NAB also arrested private person Kaleri and recovered Rs636 million from him. Kaleri also filed a plea bargain, pledging to repay another sum of Rs1.247 billion. He had submitted a list of immovable and movable assets which he had bought from that ill-gotten wealth.

The inquiry found that Sindh Bank Area Manager Tabish Ali Shah, Branch Manager Mir Muhammad Suhag, Operations Manager Raheel Ahmed Shaikh, Cash Officers Syed Ali Haider Shah and Amjad Ali Rind "grossly violated SBP's regulations" with malafide intent. "No suspicious transaction report (STR) was generation by Sindh Bank Matiari." The branch was supposed to inform SBP for all transactions of above Rs2 million.

"The accused bankers acted hands in glove with other accused." The court adjourned the hearing to August 7.

 

Published in The Express Tribune, July 20^th, 2023.