Privatisation proceeds: Half a billion rupees lost in illegal deposits, says report
Ex-minister, aides were shielded from investigation by departments of state.
Ex-minister, aides were shielded from investigation by departments of state.
ISLAMABAD:
A huge amount of privatisation proceeds worth Rs500 million have gone down the drain as no one from the state departments dares to question the accused for recovery of the money, even after two and a half years of the fraud, sources have revealed.
An official report of the privatisation commission, a copy which was made available to the Express Investigation Cell, suggests that former minister of privatisation Waqar Ahmed Khan, his director Dr Kausar Zaidi and the then secretary privatisation Shahab Anwar Khawaja, compromised the national interest to give favour to Trust Investment Bank Limited (TIBL) by depositing Rs500 million with them.
“Khan misused his authority as minister for privatisation and connived with Dr Zaidi and Khawaja to illegally invest Rs500 million privatisation proceeds in TIBL,” the report said. The chief executive officer of TIBL, Asif Kamal, is said to be Khan’s close friend.
The report noted that issue of fraudulent deposit came into limelight in 2011, but state departments joined a race to protect Khan and other accused. It said that from the prime minister’s office to law division, every state organ played a dirty role in the case.
The matter was referred to former prime minister Yousaf Raza Gilani in March 2012 with a request to order an investigation against his minister and other accused but he rejected the proposal, says the report. Later the issue was referred to the law division which observed that since Khan was holding office of the federal minister he cannot be investigated, it added.
The report further reveals Khan played a key role in getting Rs500 million deposited with TIBL in two instalments, which was in violation of the rules of State Bank of Pakistan (SBP) and investment rules of the privatisation commission.
The SBP and privatisation commission strictly ban investment of privatisation proceeds in any unscheduled bank like TIBL — which later defaulted on the amount to cause a loss of Rs500 million to the national exchequer.
As a half-hearted effort, privatisation commission signed a settlement agreement with TIBL but it also failed when cheques for recovery of money from TIBL got dishonoured, the report said. After dishonouring of cheques, the privatisation commission was supposed to register a criminal case against TIBL, but it did not comply with the standard procedure.
In his short comment on the issue, Privatisation Secretary Amjad Ali Khan neither denied nor conceded the illegal deposit of privatisation proceeds in TBIL. He said “I cannot comment on the issue of illegal deposit as each and every issue cannot be commented upon in the media.”
The secretary was reminded of the official document showing details of the case that recommended action against Khan, Khawaja and Dr Zaidi for their wrongdoing, but he did not feel it necessary to come up with a clear point of view on the case.
Published in The Express Tribune, October 21st, 2013.
A huge amount of privatisation proceeds worth Rs500 million have gone down the drain as no one from the state departments dares to question the accused for recovery of the money, even after two and a half years of the fraud, sources have revealed.
An official report of the privatisation commission, a copy which was made available to the Express Investigation Cell, suggests that former minister of privatisation Waqar Ahmed Khan, his director Dr Kausar Zaidi and the then secretary privatisation Shahab Anwar Khawaja, compromised the national interest to give favour to Trust Investment Bank Limited (TIBL) by depositing Rs500 million with them.
“Khan misused his authority as minister for privatisation and connived with Dr Zaidi and Khawaja to illegally invest Rs500 million privatisation proceeds in TIBL,” the report said. The chief executive officer of TIBL, Asif Kamal, is said to be Khan’s close friend.
The report noted that issue of fraudulent deposit came into limelight in 2011, but state departments joined a race to protect Khan and other accused. It said that from the prime minister’s office to law division, every state organ played a dirty role in the case.
The matter was referred to former prime minister Yousaf Raza Gilani in March 2012 with a request to order an investigation against his minister and other accused but he rejected the proposal, says the report. Later the issue was referred to the law division which observed that since Khan was holding office of the federal minister he cannot be investigated, it added.
The report further reveals Khan played a key role in getting Rs500 million deposited with TIBL in two instalments, which was in violation of the rules of State Bank of Pakistan (SBP) and investment rules of the privatisation commission.
The SBP and privatisation commission strictly ban investment of privatisation proceeds in any unscheduled bank like TIBL — which later defaulted on the amount to cause a loss of Rs500 million to the national exchequer.
As a half-hearted effort, privatisation commission signed a settlement agreement with TIBL but it also failed when cheques for recovery of money from TIBL got dishonoured, the report said. After dishonouring of cheques, the privatisation commission was supposed to register a criminal case against TIBL, but it did not comply with the standard procedure.
In his short comment on the issue, Privatisation Secretary Amjad Ali Khan neither denied nor conceded the illegal deposit of privatisation proceeds in TBIL. He said “I cannot comment on the issue of illegal deposit as each and every issue cannot be commented upon in the media.”
The secretary was reminded of the official document showing details of the case that recommended action against Khan, Khawaja and Dr Zaidi for their wrongdoing, but he did not feel it necessary to come up with a clear point of view on the case.
Published in The Express Tribune, October 21st, 2013.