Export subsidy racket
So far, 50 cases involving a staggering Rs5 billion paid out to fake companies have been recorded.
TDAP had released billions of rupees to export companies during the previous PPP government’s tenure under freight and subsidy schemes. PHOTO: FILE
Pakistan is no stranger to fraud associated with refund of subsidy on export goods. The latest one to roil the nation is a multi-billion-rupee scandal involving not only the top mandarins of the Trade Development Authority of Pakistan (TDAP) but also exporters of dubious credentials and politicians of high stature. According to a report carried by this newspaper, the TDAP had released billions of rupees to export companies during the previous PPP government’s tenure under freight and subsidy schemes, with a view to promoting Pakistani exports. Initial investigations by the FIA have found that most of the hard cash was doled out to phony export companies, key politicians, government officials and middlemen. So far, 50 cases involving a staggering Rs5 billion paid out to fake companies have been recorded. The recipients of this largesse had the dirty money transferred to safe havens outside the country through illegal modes of moving cash.
As well as arresting two former chiefs of the TDAP in connection with the scam, the FIA is now reported to be considering including former prime minister Yousaf Raza Gilani and the commerce minister in his cabinet, Makhdoom Amin Faheem, for their alleged role in patronising the whole scheme. It is being alleged that they used their own front men in the TDAP’s panel tasked to disburse the subsidy in order to collect their share in the pie. It goes as far as to claim that Mr Faheem, in fact, had his man planted in the TDAP committee — Export Development Fund — by requisitioning his services from the Sindh government. Mr Gilani, it is further alleged, also had his front man plucked out of Multan and placed into the committee. These are formidable allegations against men of formidable standing. We tend to consider the two men innocent until proven guilty, as goes the famous dictum. If the charges are true, they must have incontrovertible evidence to stand a court’s scrutiny. Till then, we sit with our fingers crossed.
Published in The Express Tribune, December 24th, 2013.
As well as arresting two former chiefs of the TDAP in connection with the scam, the FIA is now reported to be considering including former prime minister Yousaf Raza Gilani and the commerce minister in his cabinet, Makhdoom Amin Faheem, for their alleged role in patronising the whole scheme. It is being alleged that they used their own front men in the TDAP’s panel tasked to disburse the subsidy in order to collect their share in the pie. It goes as far as to claim that Mr Faheem, in fact, had his man planted in the TDAP committee — Export Development Fund — by requisitioning his services from the Sindh government. Mr Gilani, it is further alleged, also had his front man plucked out of Multan and placed into the committee. These are formidable allegations against men of formidable standing. We tend to consider the two men innocent until proven guilty, as goes the famous dictum. If the charges are true, they must have incontrovertible evidence to stand a court’s scrutiny. Till then, we sit with our fingers crossed.
Published in The Express Tribune, December 24th, 2013.