NICL scam: Former chairman interrogated by FIA

Investigation team suggests that a possible breakthrough could be reached within 24 hours.


Asad Kharal December 13, 2010

LAHORE: Former chairman of the National Insurance Company Limited (NICL), who is the prime accused in the NICL scam, was interrogated by different teams of the Federal Investigation Agency (FIA) in Lahore on Saturday, The Express Tribune has learnt.

Ayaz Khan Niazi, who had been allegedly involved in a dubious land purchase scam worth Rs2.75 billion, was shifted from Karachi to Lahore on transit remand Saturday evening as he was wanted by FIA Punjab for investigation.

Two cases have been lodged against Niazi in the FIA anti-corruption circle’s police station in Lahore under FIR numbers 24/2010 and 29/2010 respectively on the orders of the Supreme Court of Pakistan.

Two teams of the FIA Punjab chapter interrogated the accused the whole night under the supervision of FIA Punjab Director Zafar Ahmed Qureshi and continued till Sunday.

FIA officials claim that they tried their level best in dealing with the accused to reach a logical conclusion, and added that a breakthrough could be expected within 24 hours.

The FIA will present Niazi before the court of Area Magistrate on Monday.

The Express Tribune had an exclusive interview with Niazi, in which he introduced himself as NICL chairman on leave, not as the former chairman.

He denied all allegations against him and said that he has made committees like the audit committee, purchase committee and assessment committee for the purchase of land and has received the NICL’s board of directors’ approval.

Niazi gave the same explanation when asked why he approved to disburse an amount of Rs1.68 billion in the account of Privilege Farms Pvt Ltd to benefit Habibullah Warriach, his son Mohsin Habib Warriach and others in account of purchasing non-commercial land measuring 803 kanals,19 marlas despite the land being easily purchased for Rs02.75 million per kanal only. The report by the Board of Revenue Punjab, which was submitted in the Supreme Court, also shows these facts.

Surprisingly, the mutation of the land was not in favour of NICL but the authorities made the total payments on the sale of 803 kanals and 19 marlas of land. The property was neither occupied by NICl nor transferred to the NICL until the scam became public.

A record of the NICL obtained by the FIA shows that the NICL cancelled the deal on June 12 following a suo motu notice by the Supreme Court. However, the NICL has not taken any steps regarding the return of the amount earlier transferred into the land owner’s accounts.

In the second case, NICL purchased five commercial plots, worth Rs530 million, measuring 20 kanals and 2 marlas from Mohsin Habib Warriach for an amount of Rs1.653 billion but according to revenue record the rates of said area’s land was just Rs8 million to Rs8.5 million at that time when this deal was made.

FIA Punjab Director Zafar Ahmed Qureshi told The Express Tribune that two teams of the FIA have started the investigation and that he is personally looking into the interrogation process.

“FIA has so far arrested 11 accused in this connection like Niazi, Warraich, 7 NICL directors and two others,” he said.

He added that FIA has so far recovered an amount of more than Rs2 billion in two cases registered in Lahore, while the rest of the money will be recovered as well.

Published in The Express Tribune, December 13th, 2010.

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