Unauthorised investments: EOBI ready to return properties to sellers

It invested funds in private projects without BoT’s approval

ISLAMABAD: The Employees’ Old-Age Benefits Institution (EOBI) offered to return properties back to sellers in a report that it submitted to the apex court on unauthorised investments by the institution in private sector projects, lifting the lid on a multi-billion corruption scandal.

EOBI representative Advocate Hafiz S A Rehman submitted the report before the apex court stating that the November 21 meeting of board of trustees has endorsed the decisions earlier taken by it in a similar meeting on April 18.



The report states that the decision to return the properties to the sellers has been reached during the EOBI board of trustees meeting that was held in Karachi on November 21. Former chief justice Iftikhar Muhammad Chaudhry had taken suo motu notice in June 2013. At the last hearing on October 30, the Supreme Court had ordered the EOBI Board of Trustees (BoT) chairman, Saleh Ahmed Farooqi, to make up his mind whether the institution wanted to retain the properties or return them back to the sellers in lieu of the considerable amount paid by the EOBI.

The report says the BoT has decided to return the properties to the sellers on the same actual amount it paid while purchasing the lands as well as the mark up determined from the date of release of the payments by the EOBI to the date of receipt of the same from the sellers.

The sellers also have to pay the mark-up on the payments made to them by the EOBI, because they have utilised the money to their financial benefit whereas the EOBI suffered an opportunity loss.

The trustees board has also decided to request the apex court to order the federal, provincial as well as the local governments to refund the transaction cost paid by EOBI while purchasing lands.

It has also decided to request the court to decide about the fate of the miscellaneous charges claimed by the EOBI in respect of properties on account of different expenses that include salaries, security guard, maintenance of properties and expenses on project planning etc.

The board also deplored the mala fide intention behind these illegal transactions which were made on exorbitant rates in an unlawful manner and said the retention of these properties would defeat the cause of justice and fair play, the report explained.

Published in The Express Tribune, December 3^rd, 2014.