PESHAWAR: The National Accountability Bureau (NAB) Khyber Pakhtunkhwa on Wednesday filed Rs768 million corruption reference against three officials and two contractors in the “Clean Drinking Water for All” project for Khyber Pakhtunkhwa and merged districts.
The reference was filed against Aurangzeb, a former secretary, Local Government Department, Tahira Yasmeen, a former Chief Planning Officer of the Local Government Department, Asghar Khan, erstwhile Deputy Project Director, Clean Drinking Water for All and presently Chief Engineer, Local Council Board, and two contractors Abdul Moid Farukh proprietor M/S Ideal Hydrotech System Pakistan Limited (IHSPL), Islamabad and Baharat Ali Khan, a contractor.
The NAB claimed that first it was reported to NAB KP about alleged corruption and corrupt practices in “Clean Drinking Water for All” project, Khyber Pakhtunkhwa, and embezzlement of mobilisation advance by the accused Muhammad Ramazan Sheikh, Chief Executive Officer, M/S Ideal Hydrotech System Pakistan Limited (IHSPL) and others. The inquiry was converted into the investigation on January 8, last year and then the investigation was completed.
The project commenced across the country in April 2006 to install “Water Filtration Plants” in each union council of the country.
The project was initiated by the Ministry of Industries, Production and Special Initiatives and after award of contract the execution was entrusted to the respective Local Government Departments.
The NAB claimed the officers/officials of Local Government Department Khyber Pakhtunkhwa and others during the implementation of the project in KP and tribal districts misused their authority and committed corruption.
It claimed that Packet-1 of the project was awarded to M/S Ideal Hydrotech System Pakistan Limited (IHSPL) for the KP, seven tribal districts and Northern Areas in October 2007 for installation of 1159 water filtration plants by the ministry, whereas the contract agreement was
signed between the Secretary Local Government Department KP and accused Abdul Moid Farukh on November 5, 2007.
“In order to secure mobilization advance, accused Abdul Moid provided mobilization advance guarantee of Dubai Islamic Bank, Rawalpindi Branch, to the Ministry of Industries which was declared fake by the bank concerned after verification on November 8, 2007,” the bureau claimed.
The bureau added that in the meantime the IHSPL entered into a joint venture agreement with M/S Husnain Cotex Limited and then the new company was interrogated with Security Exchange Commission of Pakistan under the companies ordinance.
It was revealed that the accused Abdul Moid Farukh was 25 percent shareholder of the newly incorporated company, whereas accused Muhammad Ramazan Sheikh and his family was 75 percent shareholder and was also appointed as Chief Executive Officer of M/S IHSPL.
M/S IHSPL provided performance guarantee amounting to Rs129 million and two additional mobilization advance guarantees amounting to Rs387 million each in the year 2007-08 in favour of the project director Ministry of Industries.
It said an amount of Rs356.926 million and Rs278 million was released to M/S IHSPL.
The NAB claimed that accused Abdul Moid Farukh in connivance with accused Asghar Khan and Basharat Ali Khan manoeuvred and produced fake bank guarantee.
The bureau claimed the accused former secretary Local Government and Tahira Yasmeen illegally released an amount of Rs174 million to the accused Abdul Moid