NAB files corruption reference against NICL officials


KARACHI: The National Accountability
Bureau (NAB) on Friday filed a corruption
reference against 10 serving and former
officers of the National Insurance Company
Limited (NICL) and others in connection
with Rs100 million alleged illegal investment
made in the First Dawood Investment Bank
Limited (FDIBL).
The then chairmen — Abid Javed Akbar and Ayaz
Khan Niazi — along with the then executive
directors and members of the investment committee
of the NICL have been accused of investing Rs100m
illegally in the FDIBL in violation of the policy and
favouring the private bank, thus causing a loss of
Ejaz Ahmed Khan, the former executive director,
corporate services of the NICL, who is currently

serving as the Karachi commissioner, has also been
named in the reference.
The administrative judge of the accountability
courts, Karachi, admitted the reference and sent it to
an accountability court for trial.
Accused said to have made illegal investment of
According to the reference, the Supreme Court took
suo motu notice on a complaint filed by
Transparency International and ordered an inquiry
into affairs of the NICL in 2010.
The investigation revealed that the NICL
management made an irregular investment of
Rs100m as certificate of investment (COI) with
FDIBL on Nov 24, 2008 on the offer to return at the
rate of 18.5 per cent per annum for a period of six
It alleged that the investment was made in violation
of the finance policy, however, the FDIBL failed to
return the principal amount of Rs100m on the date
of maturity.
The investigation further revealed that the NICL’s
in-house investment committee comprising F&A
GM Mohammad Zahoor, Investment GM Athar
Naqvi (late), CS executive director Ejaz Ahmed Khan

and Investment Policy manager Shahab Siddique
recommended the investment and this
recommendation was unlawfully approved by Abid
Javed Akbar, the then chairman and CEO, without
seeking approval of the investment committee of the
board or board of directors.
It stated that the in-house committee was vested
with the power to invest the amount, adding that the
FDIBL made an offer for investment on Nov 20,
2008, but the investment was approved a day
earlier, on Nov 19, 2008.
The reference stated that during investigation it was
established that the 10 NICL officers misused their
authority and granted benefit to the FDIBL then
chairman, CEO and director, causing a loss of
Rs67,056,867 to the government exchequer.
It stated that the accused persons in connivance
with each other had committed the offence of
corruption and corrupt practices as defined under
Section 9(a)(iii), (iv), (vi) and (xii) of the National
Accountability Ordinance, 1999, punishable under
Section 10 of the ordinance and schedule.

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