Under the microscope: NAB approves references against Steel Mills, Railways

LAHORE: The executive board of the National Accountability Bureau (NAB) has approved references in the Pakistan Steel Mills (PSM) scandal and the Pakistan Railways case. The references were approved at a meeting of the executive board, presided over by NAB Chairman Qamar Zaman Chaudhry. According to NAB officials, two references regarding the sale of PSM products at cheaper rates will be filed against former PSM chairman Moen Aftab Sheikh, ex-director commercial Sameen Asghar and others. They are alleged to have given illegal benefits to private firms amounting to Rs506.67 million and Rs311.378 million respectively, causing a huge loss to the PSM and national exchequer. In the third reference, Asghar and others are alleged to have extended a free credit scheme to private firms, causing losses worth Rs13.66 million. In another reference in the Pakistan Railways case against Saeed Akhtar, the former GM operations and former director of planning Ahsan Mahmood are accused of causing a loss of $3.78 million to Pakistan Railways and the state treasury through acts of corruption and misuse of authority. The board also authorised an investigation into the K-P police’s weapon purchase case where the accused, including ex-IGP, members of the purchase committee, officials of the police department and others were accused of embezzlement in the procurement of equipment, weapons and vehicles. The enquiry report revealed the misappropriation of Rs1.82 billion in the procurement of weapons and other equipment for the K-P police during the tenure of chief minister Ameer Haider Hoti. Hoti’s former adviser, Niaz Ali Shah, has agreed to return the kickback amount of Rs20 million to the public exchequer on account of voluntary return. The former IG of K-P police, Malik Naveed Khan, is already in the NAB custody for receiving kickbacks in the weapons procurement scandal.

Raza Ali Khan, the brother-in-law of Hoti’s brother Mir Ghazan, was also arrested by the anti-graft body in this case. According to NAB investigation officer Enayat Khan and special prosecutor Lajbar Khan, Raza was accused of receiving Rs198 million from Arshad Majeed, a private contractor to whom most of the contracts of procurement were awarded, out of which he kept Rs3 million for himself whereas the remainder was handed over to Ghazan. They further alleged that Niaz was adviser to then chief minister Hoti on law and order and he was accused of receiving Rs20 million from Majeed. They added that he had directed Majeed to provide Rs1 million in US dollars and the rest of the money in Pakistani currency. Majeed, along with the budget officer of K-P police Javed Khan, were initially arrested on February 21, 2013, but the former was released on bail by the high court after he turned approver and agreed to voluntarily return the Rs102 million. Earlier in May 25, 2013, Majeed recorded his statement under section 164 of the Criminal Procedure Code (CrPC), wherein he alleged that he made payments of over Rs1 billion to several people, including Malik Naveed, as kickbacks for getting lucrative contracts and also to cover up the issue. In his statement, Majeed also alleged that he had made payments to Ghazan through Raza and Niaz. Published in The Express Tribune, February 9th, 2014.