NLC scam: NAB set to issue arrest warrants for retired generals

Former generals accused of causing losses of Rs1.84 billion to the national exchequer.

ISLAMABAD:

The National Accountability Bureau (NAB) is all set to issue arrest warrants for three former military generals allegedly involved in a multi-billion rupee scam at the National Logistics Cell (NLC) – a move that may result in the first ever prosecution of military personnel in a civilian court.

The scam at NLC, an army-run transportation company, is also believed to be one of the many bones of contention that led to the resignation of Leader of the Opposition in the National Assembly, Chaudhry Nisar Ali Khan, as chairman of the Public Accounts Committee (PAC). Nisar, who announced his resignation as chairman of the PAC on Nov 27, believed that the top military leadership had a hand in protecting its three-star generals involved in the scam despite recommendations made by the powerful parliamentary committee.

“We will arrest them (the accused generals) if the General Headquarters (GHQ) and the concerned ministry do not reply to the bureau’s letter by Monday,” said an official who attended a meeting of the NAB executive board on Wednesday. The bureau has written various letters to the ministry and the GHQ to inquire whether any proceedings against the accused officials had begun, the official told The Express Tribune, adding that they had not received a response to their queries as of yet.

“If the concerned ministry does not respond, NAB will take cognisance of the matter and precede the case in accordance with law,” said an official statement issued on Wednesday.

“The executive board meeting of NAB took serious notice of not receiving a response from the auditor general’s branch of the GHQ despite four reminders in the NLC scam, involving huge losses worth billions of rupees,” the statement added.

However, when contacted by The Express Tribune, Inter-Services Public Relations (ISPR) spokesperson Maj Gen Athar Abbas said, “I’m not aware of any reminders sent by NAB inquiring about investigations being conducted by the GHQ in the NLC scam against these military generals,” adding that he would check with the concerned department to see if there had been any such development in the NLC case.

The NLC officers, Lt-Gen (retd) Khalid Munir Khan, Lt-Gen (retd) Mohammad Afzal Muzaffar and Maj-Gen (retd) Khalid Zaheer Akhtar, have been held responsible in the Hamid Hassan report and the AGP`s audit report for corruption to the tune of billions of rupees in the NLC because of illegal and unauthorised loans of Rs4.3 billion taken by its management between 2004 and 2008 for investment in the stock exchange that caused losses of Rs1.84 billion to the national exchequer.

“Officials illegally invested billions of rupees in the stock market without following rules and laws,” the auditors had stated in their report last year.

Army chief General Ashfaq Parvez Kayani had also ordered a separate inquiry to probe the multi-billion scam when the news of the corruption in the army-run company had first surfaced. However, findings of the inquiry have not been made public yet. Earlier, the PAC had also directed the ministry of defence to take action against the three retired generals.

Published in The Express Tribune, January 19^th, 2012.