Payback Punjab: Politicians agree to return EOBI money

Published: July 13, 2013
The FIA team in Punjab was investigating 11 transactions worth of Rs8.65 billion, of properties in the province, out of which 6 have decided to return the money to the EOBI. DESIGN: ANAM HALEEM

The FIA team in Punjab was investigating 11 transactions worth of Rs8.65 billion, of properties in the province, out of which 6 have decided to return the money to the EOBI. DESIGN: ANAM HALEEM


PTI Lahore president Abdul Aleem Khan, former senator Gulzar Ahmad Khan and four others have voluntarily decided to return Rs7.5 billion to the Employees’ Old-Age Benefits Institution (EOBI) for six properties bought by them from the government institution, sources told The Express Tribune.

The FIA team in Punjab was investigating 11 transactions worth of Rs8.65 billion, of properties in the province, out of which 6 have decided to return the money to the EOBI. These six parties have conveyed to the FIA in writing an undertaking on affidavits that they pay back the entire amount received on account of sale of their properties if the EOBI returns their properties, sources familiar with the development told this correspondent.

The EOBI had invested an amount of Rs180 billion in real estate, contrary to the rules and without prior approval of the organization’s Board of Trustees, causing EOBI loss of billions of rupees, the sources said. Ex-chairman of the EOBI Zafar Gondal, and ex-DG Investment among others have been booked for massive corruption.

The EOBI management had also purchased land situated in the Pak Arab Housing Society from ex-Senator Gulzar Ahmad Khan for an amount of Rs1.9 billion. Similarly, PTI leader Abdul Aleem Khan also sold two properties worth Rs1.3 billion each, in Park View and River Age, said sources familiar with the case.

During the course of the investigations it emerged that Diamen Associates-an evaluation (survey) company was hired to evaluate 96 properties and was paid Rs45 million as fee. Ironically, the CEO of the Diamen Associates, Wamiq Anwar, is an employee of the PTI leader, making the whole property evaluation a raging case of conflict of interest, sources told The Express Tribune. Moreover, it has been further revealed that the entire land of River Age Phase-1 itself is disputed property, which was sold to EOBI at an exorbitant rate.

The EOBI had increased the ratio of investment in real state from 12 per cent to 25 per cent.

Moreover, it has also been revealed during investigations that land measuring 40 kanals 16 marlas in Sehjpal village (15 – 20 km away from Lahore city) was purchased from an unknown company, East Management for Rs1.43 billion, which is 300 per cent above market price. The said deal was done without the approval of the Board of Trustees.

Former EOBI chairman, implicated in the suo motu case by the apex court had purchased four floors of a plaza/hotel from a close relative for Rs250 million; and a parking area for Rs320 million, spending another Rs50 million on its renovation. However, not a single penny has been generated from these properties and thus, gave EOBI a loss of around Rs650 million, sources claim. Unsurprisingly, these properties worth Rs100 million on the market were purchased for Rs700 million, sources said.

As per the feasibility report of the construction of the 7-star hotel in front of the Lahore Airport, the project was started in year 2005 with an estimated expenditure of Rs4 to 5 billion. The tender for the project was given to Novatel Company, however, Gondal stopped the construction work and started digging a well spending Rs550 million on it. The matter went to court, with heavy fines being imposed on EOBI. In all, a loss of around Rs9 billion has been suffered by the EOBI.

Published in The Express Tribune, July 13th, 2013. 

Facebook Conversations

Reader Comments (17)

  • Mekaal Shahriyar
    Jul 13, 2013 - 10:17AM

    No such development can be expected from Sind where zinda hei bhutto zinda hei


  • H.A. Khan
    Jul 13, 2013 - 10:27AM

    The Employees should sue EOBI and it’s management for wasting the money
    As per 18th Amendment to the Constitution, all labour welfare has been transferred to the provinces.EOBI should also be transferred to provinces.


  • Jul 13, 2013 - 11:43AM

    Does EOBI have any external auditors? Whether it des have or not it will not make a difference because there is nobody to take action on their qualified report.
    So, now the PTI is also involved in full fledged financial loot and scoot. What does Imran Khan care, he just wants seats in any part of the country. What is of concern is that the PTI is a ‘one man oversight’ party. Pray the EOBI recovers the losses ASAP. Salams


  • S.R.H. Hashmi
    Jul 13, 2013 - 12:06PM

    EOBI collects contributions from salaries and wages of employees and also from their employers, and through the income generated from these funds, it pays out pension and other benefits to these employees.

    And here are these ——– should I say gentlemen who do not mind snatching the morsel even from the mouth of a starving person, so that they could build up further their already substantial fortunes.

    Their insatiable greed and crooked ways are really disgusting. And to add to the misfortune of the people, such vultures abound and are there in almost every institution in Pakistan.



  • Pakistani
    Jul 13, 2013 - 12:45PM

    Only PTI politician is named, who are others ??


  • riz
    Jul 13, 2013 - 1:16PM

    PTI is no longer clean even before coming into power.


  • Oz
    Jul 13, 2013 - 1:32PM

    ET please correct.It can not be BILLIONS.I think you are confused,10 million is not a billion.


  • Parvez
    Jul 13, 2013 - 1:45PM

    So the rule is you can steal and if you get caught, you return part of it …….. and you are free to steal again. Possibly the Talibans justice system is worth considering.


  • confused
    Jul 13, 2013 - 2:22PM

    If Aleem Khan and others are not sent to prison or their properties are returned, PTI’s claim of not being given birth by the establishment (nor having any ties with them) will go down the drain.


  • Sodomite
    Jul 13, 2013 - 4:40PM

    PTI is really like PPP, MQM and PMLN. Just different names.Recommend

  • Attif Abbas
    Jul 13, 2013 - 5:01PM

    Mr Only PTI Where are names of other parties
    PTI should investigate the matter by himself and Bring all the names of the other parties involved as they did with MQM.

    HaHa ,They wont do it as the were the main beneficiary.


  • piddler
    Jul 13, 2013 - 5:40PM

    Undertaking = InshaAllah and we all know that means- God will do it I cant


  • Saleem
    Jul 14, 2013 - 4:38AM

    Return money alone is not sufficient, they should be tried and punished as well. And what about opportunity lost – who is going to pay for that?


  • Afsar Hussain
    Jul 15, 2013 - 1:21AM

    It is unfortunate that Imran(a only honest leader till now) has inducted corrupt and selfish people in his party,for the sake of big names(with out integrity/honesty/commitment to serve the people- only serve himself)like Aleem Khan and Jahangir Tareen etc.
    This conveys lack of good judgement on the part of Great Captain.He must try to judge people by their intentions and past deeds.


  • Jul 20, 2013 - 10:24AM

    @Afsar Hussain:
    very good I bring your kind attention towards the massive corruption in EOBI and being an owner of healthy funds we are drawing Rs. 3600 per month whereas other government servant grade four drawing Rs. 10,000/- to 5 lacs inspite of zero performance as prevailing in the country. You are requested to please take issue EOBI pensioners which should be not less than Rs. 18,000/- per month because our employees at EOBI are also getting pension from EOBI as compared with Government Employees what this the justice in it. Thank you very much


  • Jul 22, 2013 - 8:11AM

    The question arising in our mind that at EOBI staff union is working and which role of this union paid in massive corruption. I seems that they are also an shareholder of this corruption and we did not know the actual sanction strength of staff working at eobi on fact and figures based. The mode of three size pensions are not understandable.
    1. EOBI pensioners
    2. invalidity pensioners
    3. survivors pensioners
    It is also scrutinizable to the fact and figures of pensioners. It seems that most of their personal relationship and household servants of politician and Government Servants; It seems massive corruption in the field will be available. Due to non providing of financial accounts on the web site it is to much difficult to chalk out the reality from it. .The conclusion is this that corruption at any stage and every moment of motto of EOBI employees and others.

    This area can be scrutinize please. Regards


  • Jul 22, 2013 - 8:24AM

    If you are member of PTI why you so worry all corrupt mafia will be in the scene of crime.


More in Pakistan