Pension scam: Former EOBI chief gets bail

Zafar Gondal is facing six cases over allegations of kickbacks, embezzlement.

ISLAMABAD: The Islamabad High Court (IHC) on Tuesday accepted a bail-after arrest application filed by a former chairman of the Employees Old Age Benefit Institution (EOBI) in a case pertaining to the Rs42 billion EOBI scam.

Justice Noorul Haq N Qureshi awarded bail to former chairman Zafar Iqbal Gondal. On March 6, the court had reserved its verdict after the counsels concluded their arguments.

In September 2014, the Federal Investigation Agency (FIA) had arrested Gondal after the Supreme Court rejected his bail plea in a case in which he is accused of taking kickbacks and inappropriately spending Rs42 billion of EOBI funds.

Six cases have been registered against Gondal in Islamabad police stations, seven in Lahore and two in Karachi. So far, he has obtained bail from different courts.

The EOBI chairman had allegedly caused a loss of Rs42 billion to the exchequer by investing huge amounts in private sector projects without prior approval from the board of trustees.

The projects included the purchase of plots in DHA, purchase of a plaza in Islamabad’s F-7 Markaz, two 4300cc Toyota Prado SUVs for the chairman, two plots in Sukkur, development of a cricket ground in Islamabad, purchase of plots from the CDA, purchase of 40 kanals in Lahore, purchase of four floors of a hotel in Lahore, construction of a hotel in Lahore, construction of M-9 Motorway and purchase of 20 kanals near Karachi airport at exorbitant prices.

Published in The Express Tribune, April 15^th, 2015.