Musharraf paid $ 1785 for $900,000 Com. plot in Lahore
www.ppp.org.pk 19 January, 2010

An article by A.H. Amin in The South Asia Tribune (Issue No 54, August 10-16, 2003) posted on the Pakistan Peoples Party website, reproduced below, accuses senior military officers of massive corruption.

Apart from General Musharraf the article also mentions the current front-runner for caretaker prime minister, Gen. (Retd.) Jehangir Karamat.

Lahore High Court Massive Charge Sheet Against Pakistan Army By A.H. Amin - The South Asia Tribune - Issue No 54, August 10-16, 2003 ISLAMABAD: The Lahore High Court in Pakistan is facing a legal and a practical dilemma: What to do with the petition which charge sheets the Pakistan Armed forces and lists details of massive kickbacks and corruption done by Generals, Air Marshals and Admirals.

The petition has been filed by a lawyer in public interest but its contents are so explosive, the High Court Judges cannot touch it. The LHC, under tremendous pressure of the Army regime, is almost helpless in even admitting or hearing the petition, let alone give a verdict against the Army.

The main charges mentioned in the petition include: - Air Chief Marshal Abbas Khattak (retired) had received Rs180 million as kickbacks in the purchase of 40 old Mirage fighters

- Air Chief Marshal, Farooq Feroz Khan was suspected of receiving a five per cent commission on the purchase of 40 F-7 planes worth $271 million

- In 1996, the Army bought 1,047 GS-90s jeeps, at a cost of $20,889 per unit. The market value of a jeep then was only $13,000. According to the National Accountability Bureau (NAB), Pakistan’s main accountability organization, some senior Army officers made Rs. 510 million in the deal.

- One hundred and eleven Army men got 400 plots in Bahawalpur and Rahimyar Khan districts at throwaway prices, paying Rs. 47.50 per kanal (1/8th of a acre) as against the actual price of Rs15,000 to Rs20,000 (1US$=Rs. 56). Another 35,000 kanals were distributed among them.

- Six respondents got 400 kanals in the Punjab while former NAB chairman Lt. Gen Mohammad Amjad was allotted a two-kanal plot on the Sarwar Road in Lahore for just Rs. 800,000 - payable in installments over 20 years. The market value of this plot was Rs. 20 million.

- General Pervez Musharraf acquired a commercial plot worth Rs 20 million at DHA in Lahore for just Rs. 100,000, payable in 20 years. "As mentioned in the report of defense services director-general, a loss of Rs 5 billion was incurred due to such allotments."

- The Army awarded a contract for the purchase of 1,000 Hino trucks at $40,000 per unit while the local Gandhara Industries had offered trucks of the same specification for $25,000 a piece. In the purchase of 3,000 Land Rover jeeps in 1995, Army officials allegedly received around Rs. 2 billion as kickbacks.

- The Army management at WAPDA raised the power tariff 13 times during the last three years besides purchasing electric meters at Rs. 1,050 a piece against the open market price of Rs. 456, causing a loss of Rs 1.65 billion to the national exchequer.

- A former military regime sold the Pak-Saudi Fertilizers for Rs. 7 billion and earned a Rs 2 billion commission on the deal.

- In 1996, the Pakistan Navy spent Rs. 13 million on installing air-conditioners at the Islamabad Golf Club without any justification. Apart from this petition some other major scams involving serving or ex members of the military junta are as follows:

- Ex Army chief General Jahangir Karamat took kickbacks of more than US$ 20 Million from Ukrainian tank company for purchase of 300 Ukrainian tanks for Pakistan Army through a middleman named as Colonel Mahmood , a brother tank corps officer of Karamat . Former Prime Minister Nawaz Sharif sent the present chief of the WAPDA Major General Zulfiqar, then serving in ISI, to Ukraine and Azerbaijan to investigate the scam.

- General Zulfiqar compiled a complete report of the transaction and the bribes given. But the Army tried to buy him out by rewarding him with the post of WAPDA Chairman and promoting him to the rank of a three star General. The then Army Chief, General Jahangir Karamat was forced to resign, based on the threat that if he did not, he would be charged for corruption.

- Many road contracts were given to a firm Hasnain Construction company without any public tenders by the recently removed Railways and Communication minister General Qazi. The company, owned by a relative of General Pervez Musharraf’s son, was also awarded the lease of a lucrative real estate in Lahore for construction of a Golf Course under frontmanship of Palm Country Golf Club, Singapore. The relative of General Musharraf admitted publicly that he was working for a commission to use his contacts and influence for the company.

- Prime commercial land developed in Defence Housing Authority Karachi was leased at dirt heap rates to McDonalds operated by Amin Lakhani by the then Corps Commander, Karachi Lt. General Afzal Janjua.

- The Army’s coercive organ NAB struck various under the table deals with various individuals accused of high profile economic crimes in addition to arm twisting NAB defaulters, into joining the present government. These include the present Prime Minister Zafarullah Jamali and at least one fourth of all elected legislators. Where does the military virtue of a defense outfit stand in these circumstances? Is 2003 not a year fit to publish its obituary? Our military virtue died, trampled below the treacherous wheels of overpriced military trucks and overpriced Chinese aircraft and defective Atlantique planes that crash in our waters because of dubious maintenance.

Yes all this has served one important development purpose. Sons of ex-subedars, ex-clerks and ex-assistant political agents have done well, climbing from relatively simple life styles to grand luxuries propelled by phenomenal assets. All came to clean the Augean stables and all departed richer. The only exception was General Yahya Khan who whatever his drawbacks at least did not have the mind of a petty shop keeper.

Clausewitz, the great philosopher of war described “Military Virtue” of an Army as the corporate spirit which forms the bond between bravery, enthusiasm and espirit de corps. Clausewitz further defined military virtue as a quality which drives an Army in a similar way as genius makes a military commander illustrious.

Military virtue in words of Clausewitz could be generated in two ways, i.e. by a succession of military campaigns and victories or by military training activity carried to the highest pitch. The more a general demanded of his troops in terms of dedicated military activity in peace, the surer he would be that his demands in war would be properly answered. In short military virtue is the fuel that is supposed to drive an Army in war.

With the above premise in mind and keeping in view our present history it can be safely concluded that military virtue of the Pakistan Army as an institution witnessed erosion from 1958 once the party started that made sons of Risaldar majors and Assistant Political Agents progress into industrial tycoons. It was a joy ride. Men who had one green suit to wear, in the words of General Tajammul, became the tycoons of Pakistan. It was the beginning of prosperity for few and the beginning of the end of military virtue of a previously Spartan and clean military machine.

The second military junta of Pakistan was led by the only Army chief not from humble background and this ensured that the Pakistan Army was kept away from cheap consumerism and avaricious lust for real estate.

The second great dinner party started in 1979 when thanks to Soviet invasion of Afghanistan a heaven-sent opportunity arrived in shape of US military aid for the third military junta of Pakistan. Stingers were flown in by the big daddy for the obedient son and these were sold in the open market by silent soldiers. Thus new business empires were created. The Zia junta as a whole did roaring business and the result is that at least four major tycoons of Pakistan today including present commerce minister have direct links with the Zia junta.

Where does building 90 acres of a welfare colony known as Creek City with the cheapest shack for Rs. 6 million fit in? Did the military junta begin the occupation for such sublime purposes in 1958 or 1999? Where does developing 62 acres of land in prime commercial real estate in Islamabad fit in? Is this the business of a Navy that was miserably shut up in a mouse hole in Karachi Port in 1971 War? True that kickback may have been taken, but at least Admiral Mansur bought a good submarine for the Navy. But for whose welfare is the Navy undertaking a project 1500 kilometers from the nearest sea?

What began as an idealistic journey ends with the shady deals around creeks in Karachi which the Navy failed to defend in 1971 and a military junta which wants to rule this country for eternity.

And in this messy situation, the subservient Lahore High Court has been asked to sit on judgment with the sprawling mountains of charges, some even admitted publicly by the Army. God help the poor Mr. Justices of the superior court.

The writer is a retired Pakistan Army Officer and a Defence Analyst who has written a number of books on defence and security matters.

Millions can be brought back from foreign accounts
The News 13 January, 2010

ISLAMABAD: There are so many countries on whose demand, subject to determination, the (looted and stolen) wealth of the nation was reverted to those states, a clear reference to President Asif Ali Zardari’s alleged millions of dollars stashed abroad, the detailed judgment of the 17-member full court on the National Reconciliation Ordinance (NRO) released on Tuesday night said.

In this context, the 68,930-word judgment referred to the cases of Ferdinand Emmanuel Edralin Marcos, late president of the Philippines, and Sani Abacha, head of the state of Nigeria, who were found involved in corruption and corrupt practices and proceedings, against them, were initiated for the return of their assets from abroad, which succeeded, leading to the return of million of dollars to their countries.
The verdict said that Pakistan is also signatory to the United Nation’s Convention Against Corruption, 2005 and had ratified it on 31st August, 2007, regarding international cooperation in criminal matters. Under Articles 44 to 50 where appropriate and consistent with their domestic legal system, the State Parties shall consider assisting each other in investigation or proceedings in civil and administrative matters, relating to corruption.

The government has been dragging its feet to implement the Dec 16 short order against the NRO saying that it would move to enforcement of the ruling only after the detailed judgment.

According to the decision, it is to be noted that while making a request to the foreign states for mutual legal assistance, no request for criminal proceedings in such a State can be demanded. However, courts of the other states may proceed independently for an action, which falls within the definition of their municipal laws, governing criminal actions. Pakistan is not the only country, which has demanded such mutual legal assistance.

The judgment said that Marcos was elected as President in November 1965 and re-elected in 1969. On 21st September 1972 he declared Martial Law in the country, which was lifted on 7th January 1981. He was re-elected as President in 1981 and remained on this position till February 1986, when he was removed through a popular revolt in 1986. In 1986, on the basis of documents lost by him in the Presidential palace, assets worth US$356 million were discovered in his name in Swiss Banks. The said assets were frozen on the request filed through Swiss Lawyers in February 1986.

On 28th February 1986 the Philippine Presidential Commission on Good Government (PCGG) formed under the Presidential Order No.1 of 1986 to recover Marcos-linked assets in the Philippines and abroad, the decision said.

The judgment said on 24th March 1986 the Swiss Federal Council imposed an unprecedented unilateral and exceptional freeze order on Marcos assets, after it was informed by a Swiss Bank that De Guzman, a Filipino Banker, with power of attorney from Marcos and his wife, had requested for the transfer of assets to an Australian Bank belonging to him, in anticipation of the Philippine Governmental claim. This was done without any mutual legal assistance treaty on criminal matters between Switzerland and Philippines, just on the basis of the Swiss Federal Act on International Mutual Assistance in criminal matters (Act on International Criminal Assistance, IMAC).

On 18th April 1986 the Philippines Government made informal request for continuation of freeze order but the freezing order was rescinded on 23rd April 1986, however, the assets were re-frozen on 20th July 1986, after a formal request, made by the Philippines Government through a diplomatic note, for continuation of freezing order.

According to the verdict, in 1989 the Government of Philippines brought Court cases in the US District Courts, California and Hawaii, however, these cases were dropped when the Marcos family agreed to transfer certain assets held in US, to the Philippines government.

On 20th December 1990, Swiss Federal Court (Supreme Court) accepted that, in principle, the frozen assets should be returned to the Philippines and also ordered for transmission of Banking documents pertaining to Marcos’ deposits to Philippines government, subject to some conditions.

On 17th December 1991 the PCGG filed civil case in the Filipino Court of Sadiganbayan seeking recovery of Marcos properties and assets just four days prior to the deadline of 21st December 1991.

On 28th December 1993 the government of the Philippines entered into 75/25(%) sharing agreement with Marcos family through PCGG which was declared invalid by the Philippines Supreme Court on 9th December 1998.

The judgment said on 10th December 1997, the Swiss Federal Court (Supreme Court) took decisive steps by issuing decision to transfer US$540 million (increased to US$658 million with interest) of Marcos, to the custody of Sadiganbayan, under the IMAC. The revised law made it, in principle, essential for the country to which the funds are to be restituted, to prove the illegal origin and the legal ownership of the funds through a legally binding judgment. However, the Republic of the Philippines guaranteed that the decision about the seizure or restitution of the assets to the entitled parties would be taken in judicial proceedings, to satisfy the requirement of Article 14 of the International Covenant on Civil and Political Rights 1966 (ICCPR).

In September 2000 Filipino Anti-Corruption Court Sadiganbayan’s first division, made, prima facie, decision that the entire US$627 million of Marcos funds, repatriated from Switzerland, were to be considered the property of Philippines.

On 15th July 2003, Philippines Supreme Court ruled that the funds transferred from Switzerland are ill gotten and must, therefore, be handed over to the Philippine Government, confirming Swiss Federal Court’s decision concerning the illegitimate origin of the funds. The money was to be used for buying the land for its distribution to poor farmers.

On 5th August 2003 Swiss and Filipino authorities expressed their satisfaction over the said decision and opined that the funds transferred from Switzerland to PNB escrow account, can now be transferred into the care of the government of Philippines, which was ultimately remitted to the Philippine treasury on 4th February 2004.

The judgment said afterwards the Federal Supreme Court of Switzerland vide partial decision dated 18th August 2006, froze the assets of GEI Inc (owned by Marcos/associates) and set a deadline of 31st December 2006 for filing or decision of the Court of first instance about the seizure of said assets, which was provided on 28th December 2006. The beneficiaries/associates of Marcos filed appeals which were dismissed vide order dated 1st June 2007.

On account of these proceedings against Marcos, the money/funds belonging to Philippine Government were returned by the Swiss Courts.

Proceedings, against Sani Abacha, were initiated for return of his assets from Switzerland to Nigeria and from 1999 to 2009, approximately US$1.2 billion, had been returned to the Federal Republic of Nigeria.

The judgment said Abacha began his career as second lieutenant in the Nigerian Army in 1963, rose through the ranks to the Armed Forces Ruling Council (AFRC) and eventually became head of State. He died on 8th June 1998 suddenly of a heart attack. He was listed as the world’s fourth most corrupt leader in recent history by Transparency International in 2004.

General Abdulsalami Abubakar’s interim government had delivered a clear message that Abacha had looted huge sums, and it had to be restored. Members of the Abacha family and some of their accomplice ‘voluntarily’ returned approximately US$1 billion to the Federal Government of Nigeria, during that tenure.

Obasanjo’s government has implicated the deceased General Abacha and his family in wholesale looting of Nigeria’s coffers. According to post-Abacha government sources, some US$3 billion in the shape of foreign assets have been traced, in the name of Abacha, his family members, representatives and accomplices.

According to the judgment, in 1999 Nigeria transmitted a request for judicial assistance to Switzerland against Sani Abacha and fourteen other persons, for blocking of their assets, channeled into Switzerland and also disclosing the relevant banking documents. The FOG blocked amount of US$ 83 million in the banks of Geneva and Zurich.

In October 1999 Geneva’s judiciary initiated various proceedings against family members and business friends of Abacha including Mohammed Abacha and Atiku Bagudu, on suspicion of money laundering, fraud and taking part in a criminal organisation. In furtherance whereof the accounts already blocked in the judicial assistance proceedings as well as other accounts, traced during the criminal investigation, were blocked. In the course of the proceedings, an amount of US$70 million was transferred to the Bank of International Settlement, in the year 2000.

In February 2005, the Swiss Federal Court rejected the appeal filed by the Abachas against the repatriation of the most of the funds frozen in Switzerland, totaling about US$468 million, approximately, however, US$40 million, the remaining frozen until the Abachas were given the opportunity to attempt to demonstrate that they were not of criminal origin.

An additional US$700 million were ‘voluntarily’ returned or forfeited in the context of criminal proceedings initiated in Switzerland, Jersey and Liechtenstein.

From September 1999 to date, approximately US$1.2 billion have been repatriated to the Federal Republic of Nigeria (including from Switzerland, Luxembourg, Jersey, Liechtenstein, Belgium and the UK).

The judgment said apart from above two cases, there is yet another case from UK jurisdiction i.e. High Court of Justice, Queen’s Bench Division.

The BAE Systems was under a contract with Saudi Arabia for the purchase of Al-Yamamah aircrafts. In relation to this contract, several allegations of bribery had been made against the BAE. The Serious Fraud Office (SFO) had been appointed to investigate into the matter. In the course of this investigation the BAE was asked to disclose the details of payments to agents and the consultants with respect to the contract of the aircrafts.

In response to this, the solicitors for BAE wrote back to SFO saying that the investigations should be halted; as the continuing investigations would seriously affect the diplomatic relations between the U.K and Saudi Arabia and also that the safety of the British citizens would be affected. Further, also that the investigations would prevent UK from clinching the largest export contract of Al-Yamamah aircrafts. This however, did not stop the investigations from continuing.

In July 2006, the SFO was about to access the Swiss Bank accounts of BAE. This caused a stir and made the Prince Bandar of Arabia to convey to the then Prime Minister of UK, that if the SFO did not stop looking at the Swiss Bank accounts of BAE, and also cease other investigation, then the contract for the aircrafts would be called off and both intelligence and diplomatic relations between the two countries would be seriously ceased.

This made the government to rethink its policy, and it was agreed between the Prime Minister and other ministers that if the investigation into this continued then the relations between the two countries would be affected and a severe blow would also be dealt on UK’s foreign policy objectives in the Middle East. Further, there would be a threat to the internal security of the country.

In light of these developments on 14 December 2006 the Director of SFO terminated all investigation proceedings as it was felt that the continued investigation posed a serious threat to the country’s National and International security and would also affect the lives of their citizens. It was in this light that an NGO called Corner House Research, applied for a judicial review of the decision to terminate the investigation process.

The Court, apart from other findings, made the following observations:-

The principle of separation of powers cannot be applied in the cases of executive’s decisions affecting foreign policy. The courts can take notice of those cases where the threat involved is not simply against the country’s commercial, diplomatic and security interest but also against its legal system.

It is the responsibility of the court to provide protection. Threats to the administration of public justice within a country are the concern primarily of the courts, not the executive.

The rule of law requires that the Director should act in a manner consistent with the well-recognized standards, which the courts impose by way of judicial review. At the heart of the obligations of the courts and of the judges lies the duty to protect the rule of law.

The Rule of law is nothing if it fails to constrain overweening power. The courts fulfill their obligation to protect the rule of law by ensuring that a decision maker on whom statutory powers are conferred, exercises those powers independently and without surrendering them to a third party. The executive, Director and the attorney should not make any decision in submission to the threats. The courts cannot exercise jurisdiction on the foreign state, however, the legal relationships of the different branches of the government and the separation of power depends upon internal constitutional arrangements. They are of no concern to foreign states. A resolute refusal to any foreign threat is the only way to protect national interest. While exercising statutory power an independent prosecutor is not entitled to surrender to the threat of a third party or the foreign state.

The discontinuation of the investigation has in fact caused actual damage to the national security, the integrity of criminal justice system and the rule of law.

The Director has acted on erroneous interpretation of Art 5 of OECD and both the Director and the government have failed to recognize that the rule of law required the decision to discontinue to be reached as an exercise of independent judgment, in pursuance of power conferred by statute. To preserve the integrity and independence of that judgment demanded resistance to the pressure exerted by means of a specific threat. That threat was intended to prevent the Director from pursuing the course of investigation. It achieved its purpose.

On the basis of above findings, the Court ultimately came to the following conclusion:- “The Court has a responsibility to secure the rule of law. The Director was required to satisfy the court that all that could reasonably be done had been done to resist the threat. He has failed to do so. He submitted too readily because he, like the executive, concentrated on the effects which were feared, should the threat be carried out and not on how the threat might be resisted. No one whether within this country or outside is entitled to interfere with the course of our justice. It is the failure of govt. and the defendant to bear the essential principle in mind that justifies the intervention of this court. We shall hear further arguments as to the nature of such intervention. But we intervene in fulfillment of our responsibility to protect the independence of the Director and of our criminal justice system from threat. On 11 Dec 2006, Prime Minister said that this was the clearest case for intervention in the public interest he had seen. We agree.”

 

Probe ordered into reported mismanagement in Haj arrangements
The News 13 January, 2010

Expressing grave concern over the alleged mismanagement and irregularities in the Haj arrangements in Saudi Arabia, Minister for Religious Affairs Syed Hamid Saeed Kazmi has ordered a high level inquiry to look into the matter and fix responsibility on the concerned officials for negligence.

“I have directed the secretary of the ministry to set up a high level inquiry to probe into the case thoroughly and take stern action against those who are involved in the irregularities occurred during the current Haj season,” the Minister told APP here on Tuesday.

A five-member committee formed by the federal government to get feedback on arrangements made for Pakistani pilgrims in Saudi Arabia had submitted its final report to the Minister.

The report, based on findings and recommendations of the committee, unveiled glaring flaws in the Haj arrangements and signs of alleged corruption in acquisition process of accommodation for pilgrims.

The committee, headed by Parliamentary Secretary for Religious Affairs, Mehboobullah Jan, obtained feedback from Hujjaj in Mina and Madina about the facilities provided to them by Pakistan’s Hajj Mission. “Majority of pilgrims were dissatisfied with performance of the staff deputed to facilitate them,” according to the findings.

“Comparison were also drawn between the facilities provided to the delegation members and those to ordinary pilgrims paying almost similar rent for accommodation to the Haj Mission. The delegation found flaws in acquisition process of accommodation,” it added.

Kazmi also called an explanation of Director General, Directorate of Hajj, Jeddah, Rao Shakeel Ahmad who was responsible to provide due facilities to Pakistani Hujjaj in Makkah and Madina during the Haj period.

Earlier, the Ministry filed cases against three Haj Group Organisers with Federal Investigation Agency who did not take the intending pilgrims to Saudi Arabia to perform the Haj this year despite the pilgrims fulfilled all the requirements.

While, the Complaint Disposal Cell (CDC) of the Ministry is compiling complaints against such private Haj operators who showed negligence in providing facilities to pilgrims and violated their agreements.

To a question, the minister strongly condemned the incidents of target killings and terrorist attack on main Ashura procession in Karachi. Kazmi said he would soon visit Karachi to meet notables, Ulema and Mashaikh of the city to ensure their active participation in restoring peace and harmony among various segments of the society. He underlined the need of forging unity among various sects to effectively combat the wave of terrorism in the city of Karachi and other parts of the country

108 CDA employees faced corruption
The News 13 January, 2010

As many as 108 employees of the Capital Development Authority (CDA) were charged with corruption during last ten years, i.e since October 12, 1999 and faced disciplinary action including dismissal of service, compulsory retirement and withholding of annual increment, NA was told Tuesday.

As many as nine CDA employees were dismissed form their services and those included Masroor Hussian (UDC), Syed Asad Raza Zaidi (Pump Operator), Raja Muhammad Amin (Kanoongo), Waheed Tariq Qazi (Assistant Director), Sarfraz Khan Satti (Driver), Muhammad Shafi Soomro (Pharmacist) but Saleh Muhammad (Deputy Director Civil), Ahmed Yar Gondal (Sub Engineer), Manzoor Hussian Shah (Assistant Director) were later reinstated after court verdict.

Among the officials who were convicted also included five senior officers who had to face compulsory retirement from the CDA including Muhammad Akbar (AAO Design Wing), Tariq Faqir (Deputy Director Maintenance), Abdullah Jan (BCS-II), Noor Muhammad (Building Inspector), Anjum Malik (Director Special Projects).

The Authority also issued some warning letters to some officials including some high rankers like Syed Muhammad Mustafain Kazmi (the then Director Enforcement), Jamil-ur Rehman (Director Revenue), Ahmed Junaid Karim (Deputy Director General), Khalid Nawaz (Assistant Director MPO), Mansoor Ahmed Pirzada (Revenue Officer) and Malik Ghulam Muhammad (Sub Engineer).As per list of 108 officers, five were those who had to pay back the embezzled amount either through their pension or any other mode of payment.

 

Man recovered from police custody
The News 13 January, 2010

The district and sessions court on Tuesday set a citizen free after getting him recovered from the illegal custody of the Bhagwanpura police station. The recovery orders were issued by the district and sessions court on a habeas corpus petition filed by the detenue’s brother, Adil, a resident of Ghazi Abad, alleging that the Ghazi Abad police had been keeping his brother Shahid in illegal custody for last few days. He further stated in his petition that his brother was not required by the police in any criminal case and the Ghazi Abad SHO was keeping him in his illegal custody to take bribe. He requested the court to depute a court bailiff for the recovery of his brother. The court bailiff raided at the police station where the detenue was present in the investigation lockup. The court bailiff submitted in his report before the court that no case was registered against him in the FIR register. Later, the court in light of bailiff’s report set him free.

 

Charged parking rackets busted
The News 13 January, 2010

The City District Government Karachi (CDGK), on receiving information of illegal charged parking in the city, constituted an inspection team to conduct a surprise raid on all such places.

The inspection team of the Recovery/Charged Parking Department conducted a raid at Tariq Road and detained eight people found charging Rs.20 car parking fee in front of Dolmen Centre.

The detainees in their written statements said that they were taking the parking fee under the umbrella of the Ferozabad Police Station. They were later released after being given a warning while the inspection team was directed to pay regular visits to the parking areas of the city and in the case of illegal charged parking, the concerned culprits be removed and handed-over to the concerned police station for legal action.

The department has also informed the general public that the parking fee of Rs 10 for cars and Rs 5 for motorcycle per entry is recoverable at City District Government’s Charged Parking sites which includes Beach View Park Clifton Parking Lot, Clifton Centre Parking Lot, Paradise Centre Clifton Parking Lot, Zoo Parking Lot, Haidery Market Parking Lot, Sindbad Parking Lot at NIPA, Crystal Court Clifton Parking Area, Hill Park Parking Area, Sasi Arcade Clifton Parking Site, whereas at Faizi Rehimeen Art Gallery Model Parking Rs 20 per car per entry is chargeable.

The above parking fee is without any time limit. If any one is demanding parking fee at any other places besides the ones mentioned the Recovery/Charged Parking Department can be informed at the Phone No.99230819.

Laljee’s daughter given official protocol to escape
The News 13 January, 2010

ISLAMABAD: The FIA secretly helped the main accused in Pakistan Steel Mills case, now being heard by the Supreme Court, to run away from Pakistan although she was on an FIA watchlist and had to seek prior permission from the SC to leave the country.

The FIA’s watch list was abolished a day before Sabin Sakina, accused director of Abbas Steel Mills and daughter of Riaz Laljee, a close friend of one of the top personalities in Islamabad, flew to the UK under official protocol provided at the Islamabad International Airport.

The staffers of an important minister escorted Sabin to the Rawal Lounge, reserved for VIPs, in connivance with FIA officials on duty.The watch list carrying her name was abolished on December 3 and she fled by the night of December 4. The action was so secretive that the then DG FIA remained in the dark about this clandestine operation for several days, an official privy to details said.

Wanted ex-chief of Pakistan Steel missing with family
The News 13 January, 2010

ISLAMABAD: Moeen Aftab, former chairman of the Pakistan Steel Mill and one of the main accused in the corruption case that caused a loss of Rs 22 billion, is missing along with his family.

According to the Director General FIA Zafarullah Khan, the former Chairman PSM is absconding and even his close family members and friends say there is no clue to the whereabouts of his wife and son.

No one even knows if Moeen is within Pakistan or has left the country.Moeen Aftab’s elder brother Saleem Aftab, a former district and sessions judge, Islamabad, and ex-DG Federal Judicial Academy, said he had been trying to contact his brother for the last 10 days or so but to no avail.

“I was even contacted by one of his (Moeen Aftab) neighbors in Rawalpindi, who too was wondering about the whereabouts of the family,” said, Saleem Aftab, who lives in Lahore.He said that he was highly concerned about his brother, who last spoke to him some three weeks back after appearing in the Supreme Court in the Pakistan Steel case.

Saleem Aftab suggested to this correspondent that one of their Islamabad-based cousins Masood Ahmad, who usually plays golf with Moeen Aftab, might know something about the ex-chairman of Pakistan Steel.

However, Masood said that there was no contact between them for the last 3-4 months.Not only that the mobile numbers of Moeen Aftab and his son are switched off, their Rawalpindi residence number also remains unattended.

According to one of Moeen’s friends, his house is locked whereas the family of his driver, living in the servant quarter, also claimed to have no idea of the owners’ whereabouts.The friend said that he last spoke to Moeen Aftab on 22 December and believed either Aftab has flown outside Pakistan or has been picked up by the FIA or some other government agency.

The DG FIA Zafarullah Khan when contacted said that Moeen Aftab was absconding.Moeen Aftab, a retired BS-22 officer and ex-member of the Audit and Accounts Service, was appointed as Chairman Pakistan Steel on contract by the present regime. He was, however, prematurely removed by the prime minister following The News report of Kamran Khan, senior journalist and Geo’s leading anchorperson, who broke the story of alleged corruption in Pakistan Steel.

Following the apex court intervention that took suo moto notice of the case, the FIA, which saw top level change on the same issue, has already registered cases against former PSM chairman Moeen Aftab Sheikh, Managing Director Rasool Bux Phulpoto, former director (commercial) Sameen Asghar and three directors, as well as chief executive officer of the Abbas Steel Group, on Dec 23, 2009 for misusing their powers with criminal intentions causing a loss of Rs 22 billion to the PSM.

Grave irregularities uncovered in arms licenses
The News13 January, 2010

ISLAMABAD: A recent report laid bare the dire irregularities in the issuance of arms licenses in the documents of the Interior Ministry, Geo News reported Wednesday. According to the report, the licenses of arms with prohibited bore were issued between April 17 and June 26, 2009. As many as 15 federal ministers obtained the licenses on unnamed applications in stark violation of the rules and regulations. The report further said people involved in the clandestine activity include senators, MNAs and MPAs. State Minister Tasnim Qureshi issued to himself at least 143 licenses. Khurshid Shah, Ahmed Mukhtar got licenses issued beyond the appointed limit. The people who got licenses issued include Khurshid Shah, Qamaruz Zaman Kaira, Ghulam Bilour and Nazar Gondal.

Anti-cartel network for South Asia proposed
Dawn 13 January, 2010

KARACHI Jan 12: Chairman CCP Khalid Mirza has proposed the establishment of a South Asian competition network in order to provide a platform to the regional countries for enforcement of the competition laws. Speaking on the second day of a national conference here on Tuesday, he said South Asia was a fast growing economic zone and the growth in trade may invite cartelisation.

He said that domestic competition agencies do not have the required skills to check cross-border cartelisation.

”Coordination is needed between countries of the region along with simultaneously conducting inspections and search in cases of organised international cartels,” chairman CCP said, and added that in this regard bilateral as well as multilateral agreements could play a significant role.

Addressing the seminar former chairman Competition Commission of India (CCI) Vinod Dhall said that for promoting cooperation among Saarc states in areas of competition, the establishment of a supra body would take a long time but the cooperation at bilateral level could be enhanced for promoting competition.

He said that the Saarc Law Forum should have a separate chapter on competition law in order to ensure exchange of information among the regional states.

Mr Dhall stressed for improving trade ties between India and Pakistan and said that the Indian Chamber of Commerce and Industry had requested the Pakistani authorities to enhance cooperation in promoting bilateral trade between them.

He said It was always very easy for the powerful lobbies and influential groups to pressurise the government through political support. There was a need to ensure full backing of the government to punish groups engag ed in cartelisation.

Regarding global competition jurisdiction, Mr Dhall said that cross-border jurisdiction of the competition agencies is necessary to take action against the international cartels.

Raising a question, he said that if anti-competitive behaviour of one country affects the other country, the former should have the jurisdiction to take action against the involved undertakings in that country.

He said that the importance of competition laws is evident from the fact that WTO agreement has also promoted measures to ensure free competition at the global level.

Every country signing free trade agreements must have an effective competition law for providing level- playing fields to all undertakings.

He expressed the hope that the competition law would come under the WTO discussion for checking anti-competitive practices and cartelisation globally.

Stressing upon the need of cooperation among different competition agencies, he said that cooperation among agencies would ensure proper investigation against the international cartels.

There should be a provision in the international competition laws to approach the concerned country, whose companies have been involved in forming cartels in different countries.

Several countries have signed agreements to share information and for taking collective action against the companies involved in cartelisation.

Mr Dhall said competition law should ensure transparency in hearing appeals against the competition agencies.

The law must provide nondiscriminatory treatment to all undertakings, while handling cases relating to cartelisation and anti-competitive behaviour.

karachi jan 12: chairman ccp khalid mirza has proposed the establish- ment of a south asian compe- tition network in order to pro- vide a platform to the region- al countries for enforcement of the competition laws. speaking on the second day of a national conference here on tuesday, he said south asia was a fast growing economic zone and the growth in trade may invite cartelisation. he said that domestic com- petition agencies do not have the required skills to check cross-border cartelisation. ”coordination is needed between countries of the re- gion along with simultaneous- ly conducting inspections and search in cases of organised international cartels,” chair- man ccp said, and added that in this regard bilateral as well as multilateral agreements could play a significant role. addressing the seminar for- mer chairman competition commission of india (cci) vinod dhall said that for pro- moting cooperation among saarc states in areas of com- petition, the establishment of a supra body would take a long time but the cooperation at bilateral level could be en- hanced for promoting compe- tition. he said that the saarc law forum should have a separate chapter on competition law in order to ensure exchange of information among the re- gional states. mr dhall stressed for im- proving trade ties between india and pakistan and said that the indian chamber of commerce and industry had requested the pakistani au- thorities to enhance coopera- tion in promoting bilateral trade between them. he said it was always very easy for the powerful lobbies and influential groups to pres- surise the government through political support. there was a need to ensure full backing of the govern- ment to punish groups engag- ed in cartelisation. regarding global competi- tion jurisdiction, mr dhall said that cross-border juris- diction of the competition agencies is necessary to take action against the interna- tional cartels. raising a question, he said that if anti-competitive behav- iour of one country affects the other country, the former should have the jurisdiction to take action against the in- volved undertakings in that country. he said that the impor- tance of competition laws is evident from the fact that wto agreement has also pro- moted measures to ensure free competition at the global level. every country signing free trade agreements must have an effective competition law for providing level- playing fields to all undertakings. he expressed the hope that the competition law would come under the wto discus- sion for checking anti-compet- itive practices and cartelisa- tion globally. stressing upon the need of cooperation among different competition agencies, he said that cooperation among agen- cies would ensure proper in- vestigation against the inter- national cartels. there should be a provision in the international competi- tion laws to approach the con- cerned country, whose compa- nies have been involved in forming cartels in different countries. several countries have sign- ed agreements to share infor- mation and for taking collec- tive action against the compa- nies involved in cartelisation. mr dhall said competition law should ensure transparen- cy in hearing appeals against the competition agencies. the law must provide non- discriminatory treatment to all undertakings, while han- dling cases relating to carteli- sation and anti-competitive behaviour.

 

NAB asked to respond to Malik’s acquittal plea
Dawn 13 January, 2010

RAWALPINDI, Jan 12: An accountability court directed the National Accountability Bureau (NAB) on Tuesday to respond to an application filed by Interior Minister Rehman Malik seeking acquittal in two corruption references. Defence counsel Amjad Iqbal Qureshi maintained in the application filed under Section 265-k of the Criminal Procedure Code that since the prosecution did “not have enough evidence” and because allegations against the minister were “frivolous and baseless”, further court proceedings in the references would be a waste of time.

In one reference Mr Malik is accused of taking away Rs700,000 recovered in a raid conducted by the Federal Investigation Agency and in the other one he is alleged to have received two vehicles as commission when as FIA’s di rector general he authorised the purchase of several vehicles.

Judge Tariq Abbasi adjourned the hearing in another application filed by the minister seeking exemption from personal appearance because the NAB’s deputy prosecutor general did not appear in court.

Talking to newsmen after the hearing, the minister said the two largest parties of the country had declared in the Charter of Democracy that the cases registered with NAB were politically-motivated references.

Without naming PML-N chief Nawaz Sharif, he said a leader of a big party had alleged that the cases were filed at the behest of an intelligence agency. The-then Ehtesab Bureau chief Saifur Rehman had already apologised for implicating the PPP leaders in graft cases, he added.

rawalpindi, jan 12: an accountability court directed the national accountability bureau (nab) on tuesday to respond to an application filed by interior minister rehman malik seeking ac- quittal in two corruption ref- erences. defence counsel amjad iqbal qureshi maintained in the application filed under section 265-k of the criminal procedure code that since the prosecution did “not have enough evidence” and because allegations against the minister were “frivolous and baseless”, further court proceedings in the ref- erences would be a waste of time. in one reference mr malik is accused of taking away rs700,000 recovered in a raid conducted by the federal investigation agency and in the other one he is alleged to have received two vehicles as commission when as fia’s di- rector general he authorised the purchase of several vehi- cles. judge tariq abbasi ad- journed the hearing in anoth- er application filed by the minister seeking exemption from personal appearance be- cause the nab’s deputy prose- cutor general did not appear in court. talking to newsmen after the hearing, the minister said the two largest parties of the country had declared in the charter of democracy that the cases registered with nab were politically-motivated ref- erences. without naming pml-n chief nawaz sharif, he said a leader of a big party had al- leged that the cases were filed at the behest of an intelli- gence agency. the-then ehtesab bureau chief saifur rehman had already apolo- gised for implicating the ppp leaders in graft cases, he added.

Tycoons’ fight Murder charge added to FIR
Dawn 13 January, 2010

ISLAMABAD, Jan 12: A murder charge was included in the FIR registered by Margalla police regarding the incident of gunfight between two rival real estate tycoons at the heavily-guarded F-8 Markaz on Saturday evening. A senior police officer confirmed the addition of the charge in the FIR lodged by Malik Riaz Hussain’s security guard Tasawur Iqbal.

However, the official was unable to explain whether the charge was leveled against Malik Riaz and his men or Malik Tabarak and his guards.

The FIR still contains the version of only Malik Riaz’s side and cross-version by his rival Malik Tabarak is yet to be recorded.

The FIR was registered against Malik Tabarak under PPCs 148, 149, 324, 353 and 7ATA (Anti-Terrorism Act).

In the FIR, the complainant alleged that the accused armed with weapons restored to firing at Malik Riaz and his security guards resulting in injures to a deputy superintendent of police and others.

In the incident, a security guard of Malik Tabarak, Hameed, was killed after receiving two bullets in his abdomen during the gun-battle.

Some police officers on the condition of anonymity said the police were investigating the incident and efforts were in progress to trace and arrest the accused mentioned in the FIR.

However, the police have no answer as to why they do not entertain the complaint lodged by Malik Tabarak.

They said some concerned officers were deliberately favouring one party while others were under pressure to save their posts.

islamabad, jan 12: a murder charge was included in the fir registered by margalla police regarding the incident of gunfight between two rival real estate tycoons at the heavily-guarded f-8 markaz on saturday evening. a senior police officer con- firmed the addition of the charge in the fir lodged by malik riaz hussain’s security guard tasawur iqbal. however, the official was unable to explain whether the charge was leveled against malik riaz and his men or malik tabarak and his guards. the fir still contains the version of only malik riaz’s side and cross-version by his rival malik tabarak is yet to be recorded. the fir was registered against malik tabarak under ppcs 148, 149, 324, 353 and 7- ata (anti-terrorism act). in the fir, the complainant alleged that the accused armed with weapons restored to firing at malik riaz and his security guards resulting in injures to a deputy superin- tendent of police and others. in the incident, a security guard of malik tabarak, hameed, was killed after re- ceiving two bullets in his ab- domen during the gun-battle. some police officers on the condition of anonymity said the police were investigating the incident and efforts were in progress to trace and arrest the accused mentioned in the fir. however, the police have no answer as to why they do not entertain the complaint lodged by malik tabarak. they said some concerned officers were deliberately fa- vouring one party while oth- ers were under pressure to save their posts.

NRO cases not to reopen immediately: Khawar
Pakistan Times 12 January, 2010

ISLAMABAD: Acting Attorney General (AG) Shah Khawar said on Sunday that cases against the beneficiaries of NRO could not reopen until the Supreme Court declared law contravening the constitutional provisions.

In an interview with ARY News, Shah Khawar said the decisions under a law, enjoy constitutional protection, which continues even after lapse of that law.

The Acting Attorney General made it clear that the cases against the NRO beneficiaries could open if the apex court exercising its powers of review, declares the law as a breach of the constitution.

Man seeks action against kidnappers, 'corrupt' cops
The News 12 January, 2010

PESHAWAR: A tribesman from Mohmand Agency has appealed to the authorities concerned to protect him against the alleged excesses of some officials from Charsadda district and alleged kidnappers of his son.

Speaking at a news conference here Monday, Haji Amanullah, father of Azmatullah, said the criminals were threatening him of dire consequences after kidnapping his son for ransom.Flanked by his family members, Amanullah alleged the criminals kept his son in a dungeon for 54 days. He alleged the kidnappers had the support of some police officials.

Narrating his ordeal, the elderly man said some gunmen kidnapped his son from his house. The criminals later contacted his family on his son’s mobile phone. He said the family traced the criminals with the assistance of an intelligence agency and later registered an FIR against Saeed Ahmad, Gul Daraz and Wakeel. He claimed that Khwaja Was police arrested all the three criminals but released them on bail after three days.

Later, he said, the Shabqadar police again arrested the criminals on their complaints but the influential criminals were enjoying every facility in police custody, as they were resourceful. Amanullah said that his son was released but taken by police officials to record his statement. “Instead of taking action against the criminals, police tortured my son to change his statement,” he alleged. Amanullah alleged that the district police officer and superintendent of Charsadda police received bribe from the criminals.

The elderly tribesmen appealed to the president, prime minister, chief justice of Pakistan, governor, chief minister and IGP to take action against the alleged criminals and ‘corrupt police officers’.

Imran for action against corruption
The News 12 January, 2010

CHAIRMAN Pakistan Tehrik-e-Insaf (PTI), Imran Khan has said the corrupt elements are once again getting united to protect their corruption and the nation has to defeat them once and for all.

Addressing a gathering of party workers at Rang Mahal Chowk on Monday, the PTI chief said our duty was to protect the ‘Pakistan of Quaid e Azam’ and wouldn’t let anyone to turn our homeland into the ‘land of Zardari.’

He said the day wasn’t far when the sun of justice would rise and all the corrupt elements that were enjoying power in the current set up would face accountability.

He said if the government tried to create any hurdle in the way of free judiciary, there would be a strict reaction from public, adding ‘we are ready for another long march.’

Imran Khan further said the rulers had put the entire federation at stake and sold its interests to US besides urging the rulers to mend their ways before it was too late.

Meanwhile, Imran Khan also inaugurated a party office in Azam Cloth Market.

PTI leaders including Ahsen Rasheed, Mian Mahmood ul Rasheed, Saloni Bokhari etc were also present on the occasion.

Drive against illegal high-rises continues
The News 12 January, 2010

DEMOLITION squads of the Lahore Development Authority (LDA) continued the drive against illegal high-rises on Monday. The drive against illegal high-rises kicked off on December 6, 2009. The massive demolition drive against illegal high-rises was started on direction of the Supreme Court of Pakistan.

Initially, LDA officials started demolishing three high-rises i.e. Al Rehman Medical Complex on Ferozpur Road in Naseerabad area, Inam Complex on Ferozpur Road and Rabi Centre on Main Boulevard, Gulberg.

LDA officials said Al Rehman Medical Complex was constructed on the land of a Katchi Abadi and under rules land of Katchi Abadi could not be used for commercial purposes. Officials said owners of this medical complex did not get the building map of medical complex approved from the LDA.

They said Inam Complex on Ferozpur Road in Garden Town area had constructed three floors without approval while the two top floors of Rabi Centre on Main Boulevard, Gulberg, were constructed without building plan.

In the second phase, the LDA started demolishing five top floors of Ahad Tower located at Kalima Chowk, Ferozpur Road. The tower was owned by Malik Ahad, a prominent political figure. Malik Ahad was elected as an MPA in 2002 on the ticket of the Pakistan Muslim League-Nawaz but later joined the Pakistan Muslim League-Q. In 2005, his son Yousaf Ahad was elected as the town nazim of Ravi Town on PML-Q ticket.

A senior LDA official said the LDA was currently demolishing 11 high-rises. He said all these buildings were identified by the commission constituted by the SCP. He said in the first phase, the LDA decided to demolish 18 buildings as per the directions of the commission, which included Mega Tower (plot number 63-B, Gulberg), Ashrafi Tower (plot number 2, block E, Main market Gulberg), Rehman Tower (plot number 9 block E, Main Market Gulberg), Jeff Heights (plot number 77, block E-1, Gulberg III), Hassan Tower (plot number 114-B, block E-1, Gulberg III), Big City (plot number 03, block E-2, Gulberg III), Harmain Tower (plot number 110, block J, Gulberg III), Mena Bazar (8 Commercial zone, Liberty Market, Gulberg III), Ejaz Center (plot number 85-A, block D-1, Gulberg III), Variety Book Centre (1 Commercial zone, Liberty Market, Gulberg III), SS House (plot number 31-A, block C-1, Gulberg III), Ahad Tower (plot number 102/103, Garden block, Garden Town), Inam Complex (plot number 83, Garden block, Garden Town) and Ayesha Take (plot number 8, Babar block, Garden Town). Other than these, the commission also recommended complete and partial demolition of buildings constructed on plot number 16, Civic Centre, New Garden Town, plot number 81, Ali Block, New Garden Town and plot number 10, Civic Centre, New Garden Town.

LDA officials said that the top floor of Mega Tower was constructed without approval, three floors of Ashrafi Towers were constructed illegally, four floors of Rehman Towers were constructed illegally, four floors of Hassan Tower were constructed illegally, two floors of Jeff Heights were constructed illegally and two floors of Harmain Tower were constructed illegally.

An LDA spokesman said that the authority had also hired private demolishing firms. He said a complete and comprehensive demolition plan was made and being implemented by the authority. He said the commission formed by the SCP inspected around 450 high-rises in the city.

Hamesh Khan’s bosses to face action: Sana
The News 12 January, 2010

Punjab Law Minister Rana Sana Ullah Khan has said the ‘bosses’ of Hamesh Khan will also have to face legal action after the latter returns to Pakistan, and Chaudhry Pervaiz Elahi will not be allowed to get away with the public money worth Rs 10b.

Addressing a press conference here on Monday, Rana Sana, who was flanked by Punjab Finance Minister Tanvir Ashraf Kaira, said the former chief minister should not mislead the nation as, contrary to his allegations, the province was financially stable.

He said the loan of Rs 51b of Punjab had reduced to Rs 46b and the government would pay the debt within four years.

He said the government was not involved in crimes such as bank robbery and land grabbing, adding it had neither patronized criminals nor made any district a hub of crimes.

Moreover, he said, the Punjab government was not involved in the allotment of land to people on fake IDs as done by Chaudhrys in Gujrat. He said the overdraft of Punjab was less that the salaries of six weeks.

He said any one terming Punjab ‘bankrupt’, must be ashamed of himself for ruling the province for five years with the help of a dictator.

He said the Chaudhrys had probably not forgotten the miserable defeat of their league in the general elections and, in order to hide this embarrassment, they were busy in leveling allegations against the incumbent Punjab government.

Provincial Minister for Finance, Planning and Development Tanvir Ashraf Kaira said the overdraft would reduce further to Rs 8 billion and it might come to zero, given the province got more resources.

Plot owners to challenge additional levy in court
The News 12 January, 2010

Some of the aggrieved property owners of Phase-VII (extension) are planning to move the superior court against levying of “unjust charges” on their plots, Association of Defence Residents (ADR) General-Secretary Asad Kizilbash told The News.

Kizilbash said that he had held a meeting with the affected land owners of Phase-VII (ext.), and after knowing about their conundrum, believed that the levy of differential charges on them is totally illegal and unjustified.

“Being the general-secretary of the ADR, I have also written a letter to the DHA administration and informed the authorities concerned about the reservations and objections of the property owners concerned,” said Kizilbash.

DHA Spokesperson Lt Col (retd) Rafat Naqvi, however, told The News that it would be in the best interests of the land owners of the DHA Phase-VII (ext.) to pay the differential cost in order to settle the lease issue, so that development on these plots could be materialised as soon as possible.

Imposition of differential charges in Phase-VII (extension)
The News 12 January, 2010

Despite the stubborn stance of the Defence Housing Authority (DHA) to make property owners in Phase-VII (extension) pay exorbitant sums in “differential costs,” residents of the area believe that the DHA should have desisted from putting such tracts of land on sale whose lease status was disputed.

Mohammad Abid Ozair, one such aggrieved property owner, told The News that he had purchased a 500-square-yard plot in July 2009 on Khayaban-e-Saadi, and went through the due procedures to get it transferred in his name. Similarly, he said, documents for Lease A and a building plan were also submitted. “During the whole process I was never informed about the DHA’s unjustified demand,” he said.

“In December 2009, I received a demand note of Rs1,072,500 from the DHA Finance Division, and the due date for payment is Jan 31, 2010. Since I am in the process of designing and constructing my house, demanding such a huge amount at this stage could halt my construction plans,” he said.

Ozair said that the DHA should have at least offered the facility of payment in installments for plot owners such as him, who were about to initiate construction of their houses. “Such a huge amount can only be paid in installments over a period of several years, otherwise it is impossible to pay out such a colossal sum.”

Another aggrieved plot owner, Mirza Amjad Sultan, currently residing in Gulshan-e-Iqbal, said that he had a 500-square-yard plot on Khayaban-e-Rizwan, Phase VII but was asked by the DHA to pay Rs1,072,500 in “differential charges.”

Sultan said that these charges, applied at a rate of Rs2,145 per square yard, is extremely high, and cannot be justified. According to the DHA, he continued, these charges are applicable to all residents and open plots of Khayaban-e-Saadi, Rizwan and Abbasi. The last date for paying these differential charges is January 31, 2010, after which a surcharge of 15 per cent per annum will be applicable – something which is breeding yet more apprehensions among the property owners of the area, he said.

While terming the sudden levy of differential cost on his plot as completely unjustified and illegal, Sultan said that had he been informed in time about the lease dispute between the DHA and the Sindh government, he would not have purchased the property from the previous owners.

Sources, meanwhile, explained that in several instances, residential and commercial plots have changed many hands, and thus, it would be unwise to recover the differential cost from the present owners of the property, who purchased the land without knowing its controversial status between the two agencies.

Moreover, property owners in DHA Phase-VII (ext.) have now started receiving bills from the DHA, showing hefty sums levied on them in differential charges. The DHA, on its part, has said that total differential cost amounting Rs1,342 million would all be paid to the Sindh government for settling the lease issue of 282 acres of land in Phase-VII (ext.), that had been acquired by the authority from the provincial government in 1992.

Favouritism alleged in tractor scheme
The News 12 January, 2010

ISLAMABAD: A legislator from Kalat has alleged PPP’s favoritism in the Benazir Tractor Scheme, whereas a senior Balochistan-based PPP leader expressed concern over the way the policy was being implemented.

They called for review of the mechanism of distribution of tractors at district and Tehsil levels after fixing quota for each district and Tehsil.PML-Q Senator Rehana Yahya Baloch, who is also a close relative of the self-exiled Khan of Kalat Mir Suleman Dawood, told The News here the other day that recently tractors were given to as many as 40 growers of Kalat district through a draw.

“We have no objection to the scheme, but the way the draw has been held, all tractors have gone to the PPP activists and supporters,” charged the lawmaker, who appeared quite upset over the development.

She met a number of dejected growers who had deposited the mandatory Rs 10,000 to qualify for the scheme but whether they were affiliated to a nationalist party or the PML-Q, they were astonishingly left out. “I think computers are also sensible and smart enough to show only PPP people qualifying for the scheme, while the rest ignored. This is unfortunate to say the least,” she maintained.

When contacted on telephone for his comments, the PPP Secretary General of Balochistan chapter Bismillah Kakar, who belongs to Qila Abdullah, also aired his concerns over the conduct of draws. Qila Abdullah is known for its agriculture potential. Kakar said they met President Asif Ali Zardari a few days back and raised the matter with him. PPP ex-minister Mir Baz Khetran was most vocal in explaining to the president the issue.

No one will be spared for looting public money: CJ
The News 12 January, 2010

ISLAMABAD: The Supreme Court on Monday observed that no one would be spared for looting and plundering the national wealth, and thus would be brought to justice.

“The impression of looting the national wealth and fleeing the country safely must come to an end now,” Chief Justice Iftikhar Muhammad Chaudhry said in his observation while heading a three-member bench of the apex court, hearing a financial scam of Rs 9 billion at the Bank of Punjab (BoP).

The chief justice observed that looters of the national wealth would be brought to book for their crimes, and if someone is innocent he would be ensured legal protection. During the course of the proceedings, the Federal Investigation Agency (FIA) informed the court that Hamesh Khan, BoP ex-president, and the accused in Rs 9 billion fraud case, would soon be extradited from the United States.

FIA Director Legal Azam Khan informed the court that Hemesh Khan had been arrested in the US and the Foreign Office had provided evidences against him to the US Law Department for his extradition to Pakistan.

The court directed the FIA to expedite the process of extradition. The court further directed to complete the inquiry against the person who facilitated the safe exit of Sheikh Afzal, owner of Haris Steel Mills (HSM), from the country.

Appearing on notice, Dr Basit, counsel for Seth Yaqoob, elder brother of Sheikh Afzal, submitted before the court that his client was sick while his two sons had been arrested. He submitted that two sons of Seth Yaqoob had agreed to deposit Rs 1.5 billion. He said that according to NAB laws if someone agreed to deposit 34 per cent of the amount, they could be released on bail.

At this, the court directed the counsel for depositing Rs 1.5 billion in seven days. The court directed not to arrest Seth Yaqoob for being sick and adjourned the hearing till February 15. The BoP had granted a loan of Rs 9 billion to the HSM without fulfilling legal requirements and consequently the HSM defaulted the loan. The Bank of Punjab then filed a petition against the HSM.

During the last hearing of the case, Sheikh Afzal, the main accused in the case, had confessed before the court to getting Rs 8 billion loan from the BoP, adding that 40 per cent of the loan was taken by his elder brother Seth Yaqoob

Ex-Navy chief confirms French kickbacks
The News 12 January, 2010

ISLAMABAD: Former Naval chief Admiral Abdul Aziz Mirza gives credence to the recent French investigative report that talked of almost $49 million kickbacks in the Agosta-submarine deal allegedly received by President Asif Ali Zardari and others, including Naval officers, disclosing that the then Benazir government had urged the Pakistan Navy to go for the French subs.

Mirza, while quoting the then Naval chief Admiral Saeed Khan, also revealed that Benazir Bhutto’s defence minister Aftab Shaban Mirani had clearly indicated to the Pakistan Navy’s high command the government’s preference for the induction of the French submarines.

Despite these clear indications by the defence minister, the top naval command again met and deliberated on the subject and decided to recommend two options to the government — the British Upholder and the French Agosta. The government later approved the induction of the Agosta.

Mirza, who led the Pakistan Navy from Oct 1999 to Oct 2002, said the Navy first formally came to know about the kickbacks in the Agosta deal in 1998 following which it proceeded against three officials of the rank of captain and commodore for getting bribe. They were eventually removed from service. “My hunch is that besides the politicians, some top ranking naval officers, even above the rank of commodore, might also have received kickbacks as reflected in the recent French media reports. They, however, (the top Naval officials) remained undetected for want of proof or witnesses,” Mirza said.

He claimed that even the condemned formal Naval chief, Masoorul Haq, was not convicted of the Agosta kickbacks but for the bribes that he had pocketed in other defence deals. According to a recent report in a leading French newspaper, investigations have revealed that Zardari received $4.3 million in kickbacks from the sale of three Agosta 90 submarines for Eu825 million. These reports also suggest that Naval officials might have received kickbacks out of this $49 million.

This deal was struck during Benazir Bhutto’s second tenure in 1994. According to former DG Naval Intelligence Commodore Shahid Ashraf, he had informed in early 1995 the then Naval chief Mansoorul Haq and his vice chief vice admiral AU Khan of the cash pay off to Capt ZU Alvi and Col (retd) Ejaz as bribe for further distribution amongst Naval officers.

Ashraf, who was dismissed from service, claimed in his statement in 1998 that he had informed the Naval chief and the vice chief in early 1995 of the Agosta kickbacks issue but was asked by them to keep quiet. Ashraf insisted that he was innocent and victimised by the Pakistan Navy in 1998 to save the skin of several other allegedly corrupt Naval officers, who had received kickbacks in the Agosta deal.

Admiral Mirza admitted the facts that Ashraf did make the same claim in his statement in 1998 and that retired vice admiral AU Khan too had confirmed the same fact when questioned in 1998 by the fact-finding inquiry.

But Admiral Mirza still insisted the ex-DG Naval Intelligence did receive kickbacks in the Agosta deal as was confirmed by the other two officers, Capt ZU Alvi and Capt Liaqat Ali Malik, who were blamed to have received bribes directly from the French. For the same reason, he said, the ex-DGNI was penalised.

He said that Capt ZU Alvi and Col (retd) Ejaz were the two main witnesses with the former having agreed to become approver on the condition of revealing all the details of kickbacks and corruption. Mirza though conceded that Ashraf was Admiral Mansurul Haq’s right-hand man, he did never carry the reputation of being corrupt before he was convicted to have received Rs 1.5 million from Alvi, who was the direct recipient of the kickbacks.

Mirza, who has also served as the country’s ambassador to Riyadh, said that one Zafar Iqbal, a middle man of the French company, was also interrogated and had admitted to have received $160,000 to be paid to four commodores. He, however, said that both Iqbal and Ejaz never paid this amount to anyone of them. The former Naval chief said that the four commodores were never charge sheeted or confronted by a board of inquiry as a fact-finding inquiry had already found them innocent, which led to their promotion as rear admiral.

Zafar Iqbal claimed during interrogation to have been assigned by the French company to bribe the Naval officials up to the rank of commodore. For top ranking Naval officers and for political bosses, Mirza quoted Zafar Iqbal to have claimed that some other middle men, including Aamir Lodhi, were responsible for the kickbacks and commissions of persons with higher status both in Navy and in the government.

Since these middle men were never caught and probed so it still remains a secret as to who amongst the senior most Naval officers of that time received how much money, he said. But he believed that there were some top men, who must have received the kickbacks but remained free.

Referring to the latest French media reports about the Agosta kickbacks, he said he gives such reports due credence also for the reason that the French, Germans, Italians and other manufacturers of defence equipment do have a recognised provision of allocating about 10 pc of the contract value as kickbacks, entertainment, gifts etc as a matter of policy.

When asked whether the kickbacks and commissions in defence deals in Pakistan could be curbed, he stated that with a little bit of sincere effort the kickbacks in defence procurements could be considerably reduced if not altogether eliminated.

Steel mills corruption being legalised
The News 12 January, 2010

ISLAMABAD: Top secret official documents to be unfolded in the Economic Coordination Committee (ECC) of the cabinet here Tuesday (today), reveal how conveniently a “clean chit” was now quietly being given to the dismissed top management of the Pakistan Steel Mills (PSP) by none other than Prime Minister Yousuf Raza Gilani on corruption charges. The PSP, according to these papers, had earned a profit of Rs2.4billion in 2007-2008 but suffered a mind-boggling loss of Rs20 billion in the following year (2008-2009).

The ECC to be presided over by finance minister Shaukat Tarin reportedly in a bid to compensate the corruption and mismanagement of top guns of PSM, would now be informed that the National Bank of Pakistan (NBP) was already used to pay a mind-boggling Rs8billion loan to this corruption-riddled Steel Mill against bank guarantees of Finance Ministry. Under the agreed secret arrangements with the banks, now Islamabad government would pay the mark-up on this huge loan of Rs8billion in addition to Rs2billion running facility from the poor taxpayers’ money.

The documents to be placed before the ECC revealed that the top management of the financially bankrupt PSM had even quietly consumed its Employees Fund, after terming it a sort of “loan”.

Chief Justice Iftikhar Mohammad Chaudhry is already seized with the shocking case of massive corruption in PSM and former DG FIA Tariq Khosa had become an instant causality in the process for daring to unearth financial scams, as he was removed from the top slot apparently for going the “extra mile” to nab the guilty.

But to the surprise of many relevant officials of ECC, the official documents are bereft of the massive corruption details, which lead to Rs20 billion loss. In a smart move, the blame of Rs20billion loss has conveniently been shifted to “global market crunch” to secure a clean chit on one hand and get approval of Rs8billion loan from NBP on the other from the ECC members.

A running facility of Rs2billion has already been provided to the financially bankrupt PSM, whose chairman was suspended by Prime Minister Yusuf Raza Gilani on the floor of the lower house. But since then no one knows what happened afterwards on this case after the removal of Tariq Khosa from the slot of DG FIA. Even official papers are silent about the sacking of its former chairman Mueen Aftab Sheikh who was suspended on corruption charges, and ironically he was the one who had actually proposed this Rs8billion loan package from the government-run bank in the name of bailout package for his PSM.

After making NPB-led consortium to pay billions of rupees as loan to the once profitable PSM which only last year earned Rs2billion, now the loan given to the Steel Mills is being given legal cover by placing it before ECC.

The official papers show that the ever smart bureaucracy of PSM has now conveniently shifted the whole blame of loss of Rs20billion in one year on “global economic recession” and “fall in the prices of its products”. The official papers established one other disturbing fact that the finance ministry bosses too bought this argument without asking questions and subsequently they ordered the NBP to dole out Rs8billion loan as its mark-up would be picked up by Ministry of Finance.

According to official documents obtained from the ministry of industries and production to be placed before the ECC, earlier a meeting was held in Karachi with Finance Minister Shaukat Tarin in the chair. The meeting was attended by the then minister for industries Manzoor Wattoo, Secretary Shahaba Anwar Khawaja, chairman PSM Mueen Aftab Sheikh and others. The participants discussed the horrible financial position of PSM. After coming to know about shocking financial condition of the PSM, even finance minister and minister for industries could not hide their “concerns” about such huge losses and liquidity crunch of the mills. It was pointed out by PSM management that PSM losses were mainly due to global economic crises. The prices of steel in the international markets had sharply gone down and dumping of steel products and scrap in the local market at very cheap prices supposedly compelled PSM to reduce its prices even below the cost of production. This actually resulted in unfavourable price variances of Rs5billion as against last year. PSM officials argued that the prices of raw material also went down but due to contractual obligation dating back to 2003-2007, it could not get benefit of the same. Due to high cost of raw material, the negative financial impact comes to Rs20 billion as against last year.

The PSM official present in this meeting also submitted that due to serious liquidity constraints LCs amounting to Rs10billion were blocked with the banks and the PS was not able to arrange payments. Besides, other liabilities i.e, loan from employees fund and expected liabilities up to June 2009, had exceeded to Rs10billion. In this connection, PSM requested for the GoP grant of Rs10billion towards equity and consortium loan with GoP guarantee of Rs10billion.

According to documents, now the ECC has been asked to approve the following measures: 1) Consortium of loan of Rs8billion and running finance facility of Rs2billion be arranged through NBP with GoP guarantee. 2) Rs2.2billion receivable from sales tax department be paid to PSM immediately. 3) In view of market fluctuation and loss of Rs19billion through procurement and sale price variation spot procurement may be restored. 4) The payment of mark-up on subordinated loan shall be made by the government of Pakistan.

Finance minister Shaukat Tarin had approved the package in June 2009, but now formal approval of the ECC members would be asked to stamp their approval on these arrangements without discussion in the ECC as NBP has already paid Rs8billion loan and Rs2billion running facility on the instructions of finance ministry bosses.

Corruption seen at root of Iraq's lack of services
Dawn 12 January, 2010

ISLAMABAD, Jan 10: A number of Pakistan People’s Party (PPP) members have expressed their surprise and concern over the government’s decision to appoint Babar Awan as law minister. A member of the PPP’s Central Executive Committee (CEC) has formally lodged a protest with the party and the government over the decision.

Dr Israr Shah has sent a letter to President Asif Zardari and Prime Minister Yousuf Raza Gilani in which he criticised the reported government’s de cision of awarding Sitara-i-Imtiaz to Mr Awan.

In his letter, a copy of which is available with Dawn, Dr Shah said: “The (party) workers of Islamabad are unable to understand why the government is putting every feather in his (Mr Awan) cap.” “The reputation of the government is at stake and it is making a political joke of itself for such actions,” says the letter, adding “such dispensation of affairs is ruining my party and sending a negative message to public.” Dr Shah also reminded the president and prime minister that in one of the CEC meetings he had suggested that a person of integrity and repute in the legal fraternity should be appointed law minister to create better working relationship with the judiciary.

He said the government had appointed a “controversial person” as law minister who was also facing corruption charges. “If he (Mr Awan) is indispensable, he may be adjusted somewhere else,” Dr Shah suggested in the letter.

islamabad, jan 10: a number of pakistan people’s party (ppp) members have expressed their surprise and con- cern over the government’s decision to appoint babar awan as law minister. a member of the ppp’s central executive committee (cec) has formally lodged a protest with the party and the government over the decision. dr israr shah has sent a letter to president asif zardari and prime minister yousuf raza gilani in which he criticised the reported government’s de- cision of awarding sitara-i-imtiaz to mr awan. in his letter, a copy of which is availa- ble with dawn, dr shah said: “the (par- ty) workers of islamabad are unable to understand why the government is put- ting every feather in his (mr awan) cap.” “the reputation of the government is at stake and it is making a political joke of itself for such actions,” says the letter, adding “such dispensation of affairs is ruining my party and sending a negative message to public.” dr shah also reminded the president and prime minister that in one of the cec meetings he had suggested that a person of integrity and repute in the le- gal fraternity should be appointed law minister to create better working rela- tionship with the judiciary. he said the government had appoin- ted a “controversial person” as law min- ister who was also facing corruption charges. “if he (mr awan) is indispensa- ble, he may be adjusted somewhere else,” dr shah suggested in the letter.

Clash of titans produces two FIRs from one
Dawn 12 January, 2010

ISLAMABAD, Jan 10: In an unusual move, the police have registered two separate cases regarding the gun-battle fought by the armed guards of two real estate tycoons on Friday, right in front of the offices of the city’s top civil and police administrators.

Usually police register just one FIR about an incident. Any additional information provided by the complainant - and even a counter-version filed by the rival party - are just attached to the original FIR.

But in this case the Margalla police treated the complaints filed by the security guards of Malik Riaz of Bahria Town-fame about the same incident as two separate FIRs.

Police sources said that security guard Tasawur Iqbal of Malik Riaz first lodged FIR 19 accusing rival tycoon Malik Tabarak Bari and his 13 alleged accomplices of unleashing unprovoked firing on his party.

FIR 20 lodged by his colleague Mohammad Iqbal later alleged that Malik Bari’s men accosted the rival party and opened fire that injured Malik Riaz’s security guard Zafar and a passerby. The accused fled after “terrorizing” the people, according to the FIR.

The case registered by the Margalla police on the basis of FIR 19 cited PPCs 148 (rioting with deadly weapon), 149 (every member of unlawful assembly guilty of offence committed in prosecution of common object), 324 (attempt to commit murder), 353 (assault or criminal force to deter public servant from discharge of his duty) and 7ATA (Anti-Terrorism Act). The one registered on the basis of FIR 20 cited the same charges but replaced PPC 353 with PPC 427 (mischief causing damage amounting to Rs50).

Both the FIRs nominated Malik Tabarak Bari, Malik Ishrat, Ashar, Ghazanfar, Isthiaq and Naeem along with six to seven unidentified persons as accused.

According to the sources, the FIRs were registered after long deliberations among some senior rank police officers at the residence of one of them in F-8/1.

A “big shot” and some influential persons also sat in the deliberations, the sources said but did not name them.

Police officers have remained inaccessible to the media to comment on the highly embarrassing incident and the one who was available chose to remain silent.

“Why are you trying to cost us our jobs,” he said when asked for some insight.

However, about the seeming anomaly in police registering two separate cases on the complaint of one party to the incident, the officer explained that the two complainants referred to two different incidents at separate spots that occurred 30 minutes apart.

“Technicalities obliged the police to register separate FIRs,” he said.

Until now, no complaint or statement had been received from Malik Tabarak Bari or his companions, he said, assuring that police would “definitely register” a case when one is received.

“Definitely police will register a case whenever it received complaint from them,” he added.

Some senior police officers and lawyers when contacted said, “an FIR means first information report and it should remain as one”.

According to them the three separate FIRs registered by the police in the Murtaza Bhutto murder case was a deliberate act to spoil the investigation and to save some souls.

islamabad, jan 10: in an unusual move, the police have registered two separate cases re- garding the gun-battle fought by the armed guards of two real es- tate tycoons on friday, right in front of the offi- ces of the city’s top civil and police administra- tors. usually police register just one fir about an inci- dent. any additional infor- mation provided by the complainant - and even a counter-version filed by the rival party - are just at- tached to the original fir. but in this case the margalla police treated the complaints filed by the secur- ity guards of malik riaz of bahria town-fame about the same incident as two separate firs. police sources said that se- curity guard tasawur iqbal of malik riaz first lodged fir 19 accusing rival tycoon malik tabarak bari and his 13 al- leged accomplices of unleash- ing unprovoked firing on his party. fir 20 lodged by his collea- gue mohammad iqbal later al- leged that malik bari’s men accosted the rival party and opened fire that injured malik riaz’s security guard zafar and a passerby. the ac- cused fled after “terrorizing” the people, according to the fir. the case registered by the margalla police on the basis of fir 19 cited ppcs 148 (ri- oting with deadly weapon), 149 (every member of unlaw- ful assembly guilty of offence committed in prosecution of common object), 324 (at- tempt to commit murder), 353 (assault or criminal force to deter public servant from discharge of his duty) and 7- ata (anti-terrorism act). the one registered on the ba- sis of fir 20 cited the same charges but replaced ppc 353 with ppc 427 (mischief causing damage amounting to rs50). both the firs nominated malik tabarak bari, malik ishrat, ashar, ghazanfar, isthiaq and naeem along with six to seven unidentified per- sons as accused. according to the sources, the firs were registered after long deliberations among some senior rank police offi- cers at the residence of one of them in f-8/1. a “big shot” and some in- fluential persons also sat in the deliberations, the sour- ces said but did not name them. police officers have re- mained inaccessible to the media to comment on the highly embarrassing incident and the one who was available chose to remain silent. “why are you trying to cost us our jobs,” he said when asked for some insight. however, about the seem- ing anomaly in police register- ing two separate cases on the complaint of one party to the incident, the officer ex- plained that the two complai- nants referred to two differ- ent incidents at separate spots that occurred 30 mi- nutes apart. “technicalities obliged the police to register separate firs,” he said. until now, no complaint or statement had been received from malik tabarak bari or his companions, he said, as- suring that police would “def- initely register” a case when one is received. “definitely police will reg- ister a case whenever it re- ceived complaint from them,” he added. some senior police officers and lawyers when contacted said, “an fir means first in- formation report and it should remain as one”. according to them the three separate firs regis- tered by the police in the murtaza bhutto murder case was a deliberate act to spoil the investigation and to save some souls.

Sindh Vision 2030 in final phase: adviser
Dawn 12 January, 2010

HYDERABAD, Jan 10: Adviser to Sindh chief minister Sharmila Farooqui said on Saturday that “Sindh Vision 2030”, a long-term development framework aimed at identifying sector-wise priorities and opportunities for sustainable development and poverty alleviation, was in its final phase. Speaking at a political dialogue, she said that corruption, tax theft and lack of efficient planning and monitoring were main hurdles to development.

Under the Sindh Vision 2030, tax net would be expanded and transparency would be ensured in utilisation of funds.

She said that an accountability bill would be tabled in the next session of parliament to ensure good governance and transparent transaction of development funds.

“Pakistans history shows that political confrontation causes economic downturn and paves the way for dictators”. Therefore, the PPP had not only solved major issues but also strengthened institutions under its reconciliation strategy, she said.

The country, she said, was back on the path of development and prosperity. The government was committed to improving the standard of education and health and had increased budgets for the two vital sectors by 58 per cent and 180 per cent, respectively, she said.

Ms Farooqui said that investment in women’s empowerment was key to improving economic, political and social condition of women in Pakistan.

Sindh led the rest of the country in economic participation and opportunity index and contributed to the highest value of gender gap index, which indicated that the overall gender gap in the province was less than in other provinces, she said.

hyderabad, jan 10: adviser to sindh chief minis- ter sharmila farooqui said on saturday that “sindh vision 2030”, a long-term develop- ment framework aimed at identifying sector-wise priori- ties and opportunities for sus- tainable development and poverty alleviation, was in its final phase. speaking at a political dia- logue, she said that corrup- tion, tax theft and lack of effi- cient planning and monitor- ing were main hurdles to de- velopment. under the sindh vision 2030, tax net would be expan- ded and transparency would be ensured in utilisation of funds. she said that an accounta- bility bill would be tabled in the next session of parliament to ensure good governance and transparent transaction of development funds. “pakistans history shows that political confrontation causes economic downturn and paves the way for dicta- tors”. therefore, the ppp had not only solved major issues but also strengthened institu- tions under its reconciliation strategy, she said. the country, she said, was back on the path of develop- ment and prosperity. the gov- ernment was committed to improving the standard of ed- ucation and health and had increased budgets for the two vital sectors by 58 per cent and 180 per cent, respectively, she said. ms farooqui said that in- vestment in women’s empow- erment was key to improving economic, political and social condition of women in pakistan. sindh led the rest of the country in economic partici- pation and opportunity index and contributed to the high- est value of gender gap index, which indicated that the over- all gender gap in the province was less than in other provin- ces, she said.

CDGL, LDA officers held
Dawn 12 January, 2010

LAHORE, Jan 10: The AntiCorruption Establishment on Sunday arrested 11 officers of the City District Government and the Lahore Development Authority and handed them over to the Old Anarkali police. These officers were taken into custody for their alleged involvement in construction of illegal high-rises in the city.

The cases were registered against them under Section 5/2/47 of the Prevention of Corruption Act 1947 and Section 161 of the Pakistan Penal Code.

The arrested officers were identified as Rana Maqbool, Tariq Mehmood Bajwa,Younas Dar, Ansar Inam Bokhari, Gharib Alam, Muhammad Jehangir, Shafqat Bhatti, Rana Muzzamil Haq, Col Abdul Majeed (retired), Mutahir and Tahir Naveed.—Staff Reporter

lahore, jan 10: the anti- corruption establishment on sunday arrested 11 officers of the city district government and the lahore development authority and handed them over to the old anarkali police. these officers were taken into custody for their alleged involvement in construction of illegal high-rises in the city. the cases were registered against them under section 5/2/47 of the prevention of corruption act 1947 and section 161 of the pakistan penal code. the arrested officers were identified as rana maqbool, tariq mehmood bajwa,younas dar, ansar inam bokhari, gharib alam, muhammad jehangir, shafqat bhatti, rana muzzamil haq, col abdul majeed (retired), mutahir and tahir naveed.—staff reporter

Corruption seen at root of Iraq's lack of services
Reuters 8 January, 2010

BAGHDAD, May 7 (Reuters) - Widespread corruption is at the root of Iraq's persistent, destabilising lack of basic services, Deputy Prime Minister Rafie al-Esawi said on Thursday. "The biggest challenge is not just the budget, which we were obliged to cut because of the drop in oil income, so that's beyond our control, but also corruption," he said.

Speaking at a conference on services in Iraqi provinces, Esawi cited a host of reasons for the lack of proper water, electricity and other basic services across the country.

Another major problem, he said, is continued violence, even though the bloodshed unleashed by the U.S.-led invasion in 2003 has fallen from its peaks in 2006-2007.

As violence fades, Iraqis focus more and more on problems plaguing daily life, such as intermittent electricity, a lack of clean drinking water and an outdated and overwhelmed sewage system.

Health and education are in a sorry state after suffering an exodus of professionals. Add to that high unemployment and a struggling economy, and Iraq faces a dangerous threat to its future stability.

"The challenge now is to provide services, which is hindered by administrative and financial corruption," Esawi said.

Many Iraqis speak bitterly of unchecked malfeasance they perceive from the lowest to the highest levels of government.

Prime Minister Nuri al-Maliki has vowed to curb corruption, and officials have taken steps to prosecute a small number of lower-ranking officials.

But officials acknowledge the problem has been dire ever since the chaotic early years after the invasion, when billions of dollars in U.S. reconstruction funds went missing and U.S. and Iraqi officials acted with little oversight.

In 2008, only Somalia and Myanmar were seen as more corrupt than Iraq, according to Transparency International.

U.S. officials say Iraq has good anti-corruption laws on the books, but aggressive enforcement has yet to take place. (Reporting by Aseel Kami; writing by Missy Ryan; editing by Mark Trevelyan)

World Bank anti-corruption chief resigns
Reuters 8 January, 2010

WASHINGTON (Reuters) - The head of the World Bank's anti-corruption unit, Suzanne Rich Folsom, resigned on Wednesday to rejoin the private sector, a Bank spokesman said.

Folsom, a U.S. ethics lawyer, had been dogged by controversy since her appointment in 2005 by former Bank President Paul Wolfowitz, who resigned in June amid an ethics scandal involving his companion.

World Bank spokesman Marwan Muasher emphasized that Folsom had not been forced from her position.

Questions within the World Bank arose over whether Folsom's appointment was tied to her political connections with the Republican Party and escalated as her department became more aggressive in response to a controversial anti-corruption campaign by Wolfowitz, a former U.S. deputy defense secretary and an architect of the Iraq war.

"I want to make it clear that she was not fired, she was not forced out. She has a very good offer from the private sector and she chose to take it," Muasher told Reuters.

"When she approached the Bank (with her resignation), the president offered her another job within the Bank but she declined," he said, adding, "There was no attempt to force her out in any way or shape."

Muasher said John Zutt, a Dutch national who has worked at the Bank as a senior adviser and a lawyer with degrees from Harvard and Oxford, would replace Folsom temporarily at the Department of Institutional Integrity, or INT, until a permanent director was appointed.

A panel led by former U.S. Federal Reserve Chairman Paul Volcker last year recommended that the World Bank examine the role of Folsom's anti-corruption unit following concerns about its investigative practices

Nawaz for brining back Swiss money
Pakistan Times 8 January, 2010

ISLAMABAD: Pakistan Muslim League-N leader Mina Nawaz Sharif has said that money present in the Swiss banks should be brought back to the national exchequer.

Addressing the party meeting here on Thursday, he said the present system is not facing any kind of threat or conspiracy, but added if there is any real threat it is from the undemocratic attitude of the government.

According to a statement issued by the party, Mian Nawaz Sharif said time has come that he should play active part in stabilizing democracy, strengthening the institutions and supremacy of law.

I made a pledge to the people that corruption, incompetency and useless politics would not be tolerated at all, he said and added such things were not only undermining the politicians but could also endanger the future of democracy in the country.

The two-time premier said situation is grave in the country. He said his party would launch a movement to improve the country’s prevailing situation. No individual, he said, could be allowed to decide the country’s fate alone.

The money in Swiss banks should be brought back to Pakistan, as it is the money of public, he added.

According to another report, the leader of Pakistan Muslim League (PML-N) Mian Nawaz Sharif has said there is no threat to system neither anyone is hatching conspiracy.

Addressing a party meeting, Nawaz Sharif said undemocratic attitude of government could poses threat. He said country’s situation is grave and we should play our due role.

He said PML-N will launch a movement to improve the situation of the country. No individual could given the right to decide country’s fate alone, he added.

Anti democratic forces do not want peoples rule in Pakistan: Fauzia
Pakistan Times 8 January, 2010

ISLAMABAD: PPP Secretary Information Fauzia Wahab says anti-democratic forces will have to realize that people of Pakistan have given PPP mandate to run affairs of the state for five years and they will not tolerate insult to their mandate. Talking to Radio Pakistan, she asked as to why charges of corruption are being leveled against the PPP alone. She commented that such charges are not new for her party.

Fauzia Wahab maintained that some people could not level corruption charges against Zulfikar Ali Bhutto as they were dwarfs before his stature. Besides, allegations of corruption and false cases against the PPP cannot end love of the people with the party, she added.

Fauzia added that the people have given their verdict in favor of the PPP in yesterday’s by-elections in Quetta and during polls in Gilgit-Baltistan. Actually, some forces do not want to weaken their grip on country resources; that’s why they do not like democracy and rule of the people, she said. PPP Secretary Information said that members of a particular club have joined hands against PPP to control the whole country.

SC seeks report from Punjab govt on PPs
FrotierPost 8 January, 2010

F.P. Report ISLAMABAD: The Supreme Court has sought the report from the government of Punjab about restoration of public prosecutors of Punjab. Chief Justice Iftikhar Muhammad Chaudhry was heading the three-member bench which was hearing the case of dismissed public prosecutors here on Thursday. Counsels to the prosecutors, Justice (Retd) Tariq Mehmood, Abdul Razzaq Khan, Raja Muhammad Akram and Farooq Amjad Mir appeared before the court and argued that the 488 prosecutors were being appointed on the contract of three years but the incumbent regime had sacked them on political basis without issuing any notice. They argued before the court that the government wanted to appoint desired people on the seats after dismissing 488 prosecutors. Counsels further pleaded before the apex court that Punjab government should provide opportunity to all the sacked prosecutors to contest Punjab Public Service Commission exam and then only successful candidates should be allowed to continue with their respective jobs. Iftikhar Chaudhry in his remarks said that the court would not allow discrimination to anyone, adding that all prosecutors should be allowed to perform their respective duties. He said that it was not just that few were being sacked and few were allowed to continue. He remarked that the sacked prosecutors were the citizens of Pakistan so they should not be treated like enemies. The superior court therefore directed the Prosecutor General Punjab Zahid Hussain Bukhari to inform the court regarding the reinstatement of sacked prosecutors after getting directions from the government of Punjab. The court then adjourned the hearing till today (Friday).

Appointment of 16 assistant professors UoP served notice asking for revoking notification
The News 8 January, 2010

PESHAWAR: Lawyer of a female lecturer has served a legal notice on the University of Peshawar (UoP), asking for withdrawal of notification of appointment of 16 assistant professors issued on November 15, 2006.

The notice sent by Barrister Adnan Saboor Rohaila stated that his client Mamoona Noman, lecturer at the Department of Mathematics at the university, had filed a writ petition in the Peshawar High Court (PHC), challenging the university’s notification on the appointment eligibility criteria and subsequent advertisement for appointment.

He said that the PHC allowed her petition on December 15, 2009, directing the university administration to consider Mamoona Noman for the post of assistant professor. He reminded that the court had declared null and void the issuance of the notification and changing the eligibility criteria and termed it discriminatory.

Rohaila stated that since the notification and subsequent advertisements were challenged successfully by his client, the appointments under the head of assistant professors would also hold no field, as the effect of the judgment would take things back to November 15, 2006.

The lawyer said that after the verdict of the PHC, the university issued the notification of appointment of 16 assistant professors against the spirit of the judgment of the PHC. He said the university also advertised post of his client afresh which was an attempt to frustrate outcome of the writ petition and judgment of the PHC, “as the posts should have been advertised as corrigendum/addendum to the advertisement and the notification of appointment of 16 assistant professors should not have been issued.”

He said in the fresh advertisement, the eligibility criteria for the post advertised for his client incorporated both the old and the new criteria while the judgment of the PHC conspicuously directed that it should be under the un-amended statute according to the old eligibility criteria.

The counsel said in an advertisement that appeared in a section of press on August 2, 2008 the university advertised old eligibility criteria for a post of assistant professor in Home Economic College, “which speaks loud of the discrimination caused to my client.”

He said that the judgment of the PHC was detailed and candid which should be implemented in its true spirit and character and any deviation would be considered as intentional obstruction in the way of legal right. He urged the university administration to comply with the verdict of the PHC immediately, failing which it would have to face contempt of court proceedings at its own risk and cost.

MB Abbasi gets interim bail in corruption references
The News 8 January, 2010

The Sindh High Court (SHC) granted interim bail to Pakistan’s ambassador to Iran M.B Abbasi in two corruption references.

Abbasi, along with others, is accused of causing losses to the tune of Rs.296 million to the National Development Finance Corporation (NDFC) during his tenure as Chairman of the organisation from 1993 to 1995. The National Accountability Bureau (NAB) alleged that Abbasi and other defendants committed numerous procedural and processing irregularities while granting the financial facilities to private firms.

The cases have been reopened after the Supreme Court judgment on the National Reconciliation Ordinance (NRO). Petitioner’s counsel Amir Raza Naqvi submitted that the petitioner was out of country and wanted to face the criminal proceedings reopened after the SC judgment on NRO.

He submitted that the petitioner had nothing to do with the offence and cases were registered when the petitioner was detained under the Maintenance of Public Order in November 1996. He said that the petitioner left the NDFC in 1995 but the cases were registered in 1997 indicating political motivation. The counsel sought interim protection so that the petitioner could appear before the trial court.

The SHC’s division bench comprising Justice Mushir Alam and Justice Munib Akhtar, after preliminary hearing of the petitions observed that, prima facie, the petitioner was not arrested and was out of the country. The court granted him protection against arrest to appear before the court and directed that he may not be arrested on his arrival for 15 days so that he could appear before the trial court.

Granting interim bail with surety of Rs.2,50,000, the court issued notices to the Deputy-Attorney-General and the Deputy-Prosecutor-General, NAB, for January 19.

The court also granted interim bail to Ali Qaswar Bukhari, an Additional Director of the Federal Investigation Agency in a corruption reference. Bukhari is accused of accumulating wealth and properties beyond his known sources of income.

The petitioner’s counsel submitted that an inquiry was being conducted against the petitioner for the last 10 years and reference was filed against him by the NAB. He submitted that petitioner was already on bail prior to formulation of the NRO. The court granting interim protective bail with surety of Rs.5,00,000 with the direction that the order could be withdrawn if petitioner tried to abuse or misuse the concession of bail.

Kidnapping for ransom cases: The Administrative Judge of anti-terrorism courts in Karachi sent five suspects, facing kidnapping-for-ransom charges, to jail and directed the Investigation Officers (IOs) to submit charge sheets against them.

According to the police, Ms. Mehwish, Asad, Zafar, Asif and Adil are charged with kidnapping a boy Abdul Basit from Gulshan-e-Iqbal area for ransom on December 9.

Investigator said that suspects demanded Rs.2 million as ransom from the family members of the abducted and later released him after taking the amount of Rs.71,000

Changes to CCP law to deal blow to economy: Mirza
The News 8 January, 2010

KARACHI: Some powerful persons in businesses have been trying to introduce some unnecessary amendments to the existing law of the Competition Commission of Pakistan (CCP) and if they succeed in distorting and changing the spirit of the law then it will give a severe blow to the economy.

CCP Chairman Khalid Mirza said this while speaking at a training workshop for journalists on ‘Competition Law and the Role of CCP in Promoting Competition’ here on Thursday. When asked about the major hurdle to the way of CCP working, the chairman replied that the commission did not want to rely on the government funding any more as far as its annual budget allocation is concerned, but it longs to receive its authorised share in total fee collection by the regulators in the country. “It is there in the law that regulators like the SECP, the SBP and others are bound to pay three per cent of their total collection of fees on quarterly basis, but they are not doing so since this law came into being a long ago.”

Responding to another question, he said he cannot set a timeframe when the CCP hearing on sugar crisis would conclude. The commission issued notices to 66 sugar mills and each of them would be heard properly, while the next hearing on the subject is on January 25, he added.

As regards the value-added textile manufacturers’ claim about the shortage of yarn in the country and export of yarn too, Mirza said he saw no competition issue in this matter. But anyone can contact the commission in this regard if someone finds something relevant.

Since its creation in November-2007, the CCP took up several cases of cartels, abuse of dominant position and deceptive marketing practices in important sectors of the economy including sugar, cement, banks, cement companies, the largest refinery, the three stock exchanges, cellular companies, a leading business school, a government sponsored trust, several leading newspapers, a professional association, PIA and two fertilizer companies held by an Army Trust, he underlined earlier, members of the CCP delivered presentations on different subjects relating to the CCP law.

TDAP rejects allegations of corruption
The News 8 January, 2010

Islamabad: The Trade Development Authority of Pakistan (TDAP) on Thursday rejected the allegations reported by the Transparency International dubbing TDAP the third most corrupt organization in awarding contracts overseas, saying it was only meant to defame the organization.

However, Secretary Commerce Zafar Mehmud assured the national assembly standing committee that the ministry was ready to investigate if it was provided with specific evidence regarding exhibition aboard and delegation’s visit to exporting countries.

Chairing a meeting of the committee, PML-N parliamentarian Eng Khurram Dastgir expressed his concern that the mode of funding of the TDAP was not transparent and was open to question. The inefficiency of the TDAP was also hurting exports of the country and this move of the Authority was also discouraging export houses, he added. The chair also shared some of the financial irregularities while holding Expos in major cities of the country and also awarding contracts in the construction of pavilions abroad and directed the Ministry of Commerce to “keep TDAP in order”.

Zafar Mehmud said the ministry was ready to investigate the affairs of the TDAP but the cases provided to the ministry should be genuine, adding, “I am not here to defend the Authority but it is difficult task”.

Tariq Saeed, former chairman of SAARC chamber, proposed that the Authority should only finance those exhibitions where the exporters can display their own stalls, otherwise the exporters should pay for the stalls if these are on sale.

A representative from Karachi proposed imposing import development levy similar to export levy by abolishing the same to make the exports competitive.

Briefing the committee about the expenditure of Export Marketing Development Fund (EMDF) for 2009-10, Javid Anwar, DG TDAP said the federal government had allocated Rs1 billion for the TDAP and Rs577 million for the EMDF and added that Rs231 million had been released for the first six months out of which Rs230 million had been spent.

Out of this total budget, Anwar said the Authority had spent 85 per cent on its oversea exhibitions and visits of delegations abroad, adding it had spent Rs25 million for sending delegates abroad and Rs 157 million for overseas budget.

While discussing the trade ordinance, the Chairman observed that bribes were being offered for issuing licenses to new chambers and asked the Ministry of Commerce to simplify the procedures and facilitate the trade bodies in their registration.

NA panel wants DG health removed
The News 8 January, 2010

ISLAMABAD: The National Assembly’s Standing Committee on Health, comprising eight doctor-cum-MNAs, has recommended the immediate replacement of Director-General (DG), Health, Dr Rashid Jooma, over a bundle of charges.

With the MQM’s Dr Nadeem Ehsan in the chair, the panel gave a 30-day deadline to the Health Ministry to conduct an inquiry and submit a report after replacing Dr Jooma.

Two-page minutes and three-page recommendations of the NA panel were prepared just a few days back in which the DG health was charged for patronising the Indian products, discouraging the local industry and interacting with Chinese companies for importing inferior quality syringes.

The panel head, Dr Nadeem Ehsan, when contacted, confirmed that there was great resentment among the committee members, particularly those from the PML-Q. He, however, did not say what would be the next step of the panel if disciplinary action was not taken by the Health Ministry.

The DG Health was not ready to give his version despite repeated contacts by this correspondent during the last three days. However, his staff confirmed he was very much there.“The committee has 17 MNAs having different views on the issues,” was panel chairman Dr Ehsan’s response when asked about unanimity of the minutes and recommendations.

Another charge against Dr. Jooma is the signing of an MoU to privatise vaccine units of the National Institute of Health (NIH) and it may prove to be another scandal like the Pakistan Steel Mills.

The DG Health has a thriving practice of neurosurgery and, therefore, he prefers to stay in Karachi at least three days a week, which badly affects the ministry’s working due to his absence.

Therefore, DG Health has been asked by the committee to explain his stay in Karachi to conduct surgeries at various private hospitals charging fee but all on government expense.Premier Gilani, taking a serious notice, ordered suspension 40,000 drugs registration but no action was taken against Chairman Drugs Registration Board (DRB), as the post rests with the DG Health. An inquiry into grant of registration to a dozen Indian vaccines against laid down rules would also be conducted.

“A ministry official told the body that Dr Jooma makes extensive foreign trips, both personal and official, mostly to China and India but he has never reported to his high-ups or sought NoC,” the committee minutes read. The new health minister directed immediate repatriation of the drugs controller based on allegations of registration approvals granted in violation of rules but surprisingly the DG Health is still enjoying the post.

Haj report speaks of corruption in billions
The News January, 2010

ISLAMABAD: An official report on the government’s recent Haj operation for 2009 has revealed corruption worth billions of rupees together with tales of mismanagement, incompetence and apathy, adding yet another chapter to the continuing saga of bad governance by the PPP.

Submitted by a five-member official delegation led by parliamentary secretary for religious affairs Mahboob Ullah Jan and comprising provincial Haj and Auqaf ministers, the report found the accommodation issue the most crucial and said: “The delegation members found obvious signs of corruption in procurement of accommodation, which ran into billions of rupees.

“There have always been complaints of lack of transparency in this huge procurement. This year, the complaints were manifold and the Haj delegation has documented the poor conditions of the procured accommodation,” the report said.

Secretary Religious Affairs Agha Sarwar Raza Qazilbash, when approached by The News, said that the report of this committee was given to Religious Minister Hamid Saeed Kazmi just a few days before his departure on a foreign visit.

He said he had not read the report but the minister had told him that this committee report had suggested some measures for betterment of the system. He said the religious minister will come back on January 11 and then his ministry will start taking steps in accordance with the recommendations of the committee.

On the question of allegations of corruption of billions of rupees in the said report during the Haj operations, Qazilbash said that as he had not gone through the report and it was with the minister, so he could not comment on it before January 11.

The delegation members, however, unanimously recommended to the government a high-level probe to determine the reasons for hiring of substandard accommodation in Makkah for Pakistani pilgrims by the Haj Mission, which at times was not even certified by the Saudi authorities as suitable for such use. It also doubts the appropriateness of the rent claimed to have been paid on behalf of Pakistani pilgrims.

The report recommended that the procurement of accommodation needs complete transparency to ensure provision of good value to the expenses paid by pilgrims and noted: “Present arbitrary system lacks accountability and leaves a large room for misappropriation of billions of pilgrims’ funds.”

The report talks of massive mismanagement and says that the main reasons for mismanagement were apathy, corruption and incompetence.

“There was no sense of devotion or responsibility to effectively and promptly respond to the problems faced by common pilgrims,” the report said, recommending: “The sacredness as well as the challenging nature of the task of handling hundreds of thousands of pilgrims requires merit based appointment of all Haj Mission officials.”

The report noted that the main concern of the Haj Mission officials has been to look after the “VIP” pilgrims including dignitaries, senior officials, members of higher judiciary, media representatives, etc.

“In order to perform their basic tasks, the Haj Mission officials should devote themselves fulltime to look after ordinary pilgrims. The dignitaries, senior officials, members of higher judiciary, media reps, etc. shall be looked after by a separate team of officials specially earmarked for protocol and facilitation duties.”

According to the report, the most important component of the Haj expenses is the provision of accommodation, which makes up for 90 pc of the comfort for a pilgrim, in terms of its distance from Haram Sharif; the sizes of rooms and the quality of beddings; bathing, washing and cooking facilities; cleanliness and hygiene; as well as the overall condition of the building, its lobbies and lifts. A Pakistani pilgrim, it is said, was charged SAR3,200 for arrangement of facilities which would include transportation if the accommodation was beyond 2,000 meters from the Haram.

“There was a world of difference in market prices in various areas and for various categories of accommodations in each area, but the accommodation charges deducted from each Pakistani pilgrim never went below SAR2,900, even for the farthest and the most rundown accommodations, which should not have cost more than SAR2,000 per pilgrim.”

The report revealed that the amount contributed by Hujjaj this year, is estimated to be around Rs38 billion, out of which around Rs11 billion went to PIA and other airlines in travelling expenses.

Some Rs500 million went as terminal, service and vaccination charges to our Haj Ministry related facilitation in Pakistan. An estimated Rs4.8 billion was charged by the Saudi Haj Ministry, a major chunk of which went to mutawwafs (Haj facilitators), who are engaged for these services by our Haj Mission. The Haj Mission got an estimated amount of Rs6.75 billion to arrange accommodation for some 85,000 pilgrims who opted to go on government scheme.

The delegation also pointed out the apathy prevailing in the officials of the Haj Mission towards the sufferings of the Pakistani pilgrims at the hands of Mutawaffs who were supposed to be monitored by the Haj Mission.

In its 24-page report, the delegation lamented the deliberate attempt by the Haj Mission officials to keep them away from ground reality. “The evasive, unfriendly and clueless attitude of the staff posted to receive the pilgrims, was exceptional to Pakistan only. When one observed the way the pilgrims were coming and leaving the Pakistani pavilion with those of other nationalities or booked with “VIP” tour operators, the waiting time for an ordinary Pakistani pilgrim at Jeddah airport, was at least two to three times longer than the waiting time for the pilgrims of other nationalities.

The reports also gives detailed comparisons of facilities provided by other countries to their pilgrims and said that the Indian pilgrims paid SAR2,300 for Aziziya accommodation (including transportation) while Pakistani pilgrims were charged SAR2,900-3,200 for accommodation in that area.

At a distance of more than 1,000 meters, the Indian pilgrim paid upto SAR2,800 while for a Pakistani pilgrim it ranged between 2,900-3,200. No Indian pilgrim lived in such poor condition accommodations for which Pakistani pilgrims were paying SAR2,900-2,950 (which by sheer comparison did not value more than SAR2,000). No Pakistani pilgrim under the government scheme was provided accommodation within 1,000 meters area whereas there were several buildings of Indian Haj Committee within this range (some just 200-300 meters away from Haram) for which they did not charge more than SAR3,500 per pilgrim.

About the arrangements in Mina, it said: “There was no system of visits by officials of the Haj Mission, of the tents of Pakistani pilgrims in Mina to get their feedback and to ensure their due facilitation. They were left at the mercy of Mutawaffs who were at liberty to give last priority to Pakistani pilgrims despite being paid on equal terms.”

The report also covers the efficacy of billions of rupees spent from national exchequer on the staffing of Haj Mission as well as the seasonal arrangements such as Medical Mission and Khuddamul Hujjaj (servants of pilgrims). As for some 250 Khuddamul Hujjaj were drawn from the armed forced.

The report says: “Most of Khuddamul Hujjaj were found busy in performing their own Haj and did not perform any duty at all.” It further says: “The delegation members were of unanimous opinion that the number of Khuddamul Hujjaj was not justified.

It was also observed that this large contingent needs to be replaced by coordinators/facilitators who were properly equipped with IT gadgets and trained/qualified in IT skills to handle large number of pilgrims and their luggage efficiently with use of modern technology.”

As for the Medical Mission, it says: “The Health Mission was unnecessarily large and continuing extensive procurement of medicines most of which were not required to be provided by them in view of blanket health coverage provided by the Saudi government.”

JJVL explains its position
The News 8 January, 2010

KARACHI: Jamshoro Joint Venture Ltd (JJVL) has explained its position vis-a-vis a press report about the proceddings of the Public Accounts Committee where it was alleged that oil marketing companies earned Rs 220 billion ìblack moneyî.

The JJVL rejoinder states:

1) Bhikki

Ans: Invitation to Khawaja Asif was extended in July to please visit the Bhikhi Plant and verify whether the Plant is new or old. Despite a commitment on Television and personally that he will visit the Plant, he has not yet done so.

2) It has been said that Bhikki Plant is paid rental even when gas was not delivered.

Ans: PPR has got no concession which has not been given to IPP’s or other Rental Power Plants The Government has a financial model in which supply of gas to Gas Power Plants is the responsibility of the Government and non-supply of fuel is an event of default. This question should be asked from the policy makers rather than the power producer which is suffering due to non-availability of gas.

Furthermore, even if the Plant is not working, the Plant has to be maintained on full standby condition which requires payment to employees and plant maintenance. Also interest being paid to the bankers does not stop if the plant is not running.

Associated Group acquired the Contract after it had been signed by Alstom Rental Power and was not a party to Contract negotiations.

3) Whether process to award the JJVL Contract was transparent?

Ans. JJVL receives supplies from the previously owned Union Taxes fields at Badin which have been in production since 1998. From 1998 to 2003, before the Contract was signed, 100’s of millions of Dollars worth of gas was lost and the exchequer suffered According to the Gas Sales Agreement between the owners of the Field and SSGC, the rights to produce LPG passed from one to the other every 6 months and despite a period of over 18 years both failed to set up an LPG Extraction Plant as it was considered a very high risk. JJVL followed a procedure laid down by the Company in letter and spirit and all data is available for any one to verify the same. The Project was awarded through international competitive Bidding.

4) That JJVL is profiteering by increasing the prices.

Ans. This is yet another false allegation. We don’t fix the price. Let the following facts speak for themselves regarding price increase:

Royalty to SSGL was Rs. 97M and Rs. 1,633 M in 2005 and 2009 respectively. Similarly the payment of gas to SSGC was Rs333M and Rs 2862 in 2005 and 2009 respectively, fuel cost paid to SSGC was Rs 11mM and Rs 21M and the gas transportation cost paid to SSGC was Rs 9m and Rs 49M in 2005 and 2009 respectively.

The above will show that the cost being paid to SSGC has increased by 10 times over the last 4-1/2 years. This has impact on cost.

The total payments made to SSGC are in excess of Rs 15 Billion from 2005 to June, 2009.

The taxes paid to Government in the shape of Sales Tax, Excise Duty, WPPF, WWF and Income Tax are in excess of Rs 4 Billion for the same period.

Total revenues of JJVL are over Rs 28 Billion thus the charges that profit of Rs 220 Billion has been made is preposterous.

When the O&M, administration, distribution, finance and other overheads are included in the cost of production, the net income of JJVL, after tax, is less than 10% of its turnover. By no standards can this be considered profiteering. All data is available for any one to verify. The above figures have been taken from the audited accounts of the Company which is being audited by one of the world’s top audit firms i.e. Delloite.

5) Quotas were given for political and business gains

Ans.

i) JJVL is a private entity and, therefore, award of quotas are not made by it.

ii) JJVL enters into Sale/Purchase Agreements with Marketing Companies holding OGRA Licence and has arrangements with 28 Companies, including Pakistan State Oil, for supply of LPG. iii) Each Company is required to invest between Rs 50 million to 100 million and set

up an LPG storage and filling facility which has to be certified by OGRA before commencement of supplies of LPG to them.

iv) When the OGRA Licence is available, each Producer is free to chose its own distributors.

v) According to Government of Pakistan, Ministry of Petroleum letter No. LPG-

10(2)2000-Dereg dated 1st August, 2000:

* i) The Government would not make allocation of LPG to any party.

ii) All the new producers of LPG shall have the right to either market their product by themselves or dispose of their LPG to the licensed Marketing Companies or to the new parties after their pre-qualifications in accordance with LPG Rules.

vi) Government of Pakistan LPG Policy 2001 further states:

“Subject to sub-rule (1), any producer of LPG base-stock may dispose of the whole or part of its own product to a licensed LPG marketing companies or a new party after its pre-qualification as regards its financial competence and technical competence subject to the condition that it is not defaulter.”

These Rules were framed and made much before JJVL was even conceived. JJVL has simply followed the Government Rules and directions applicable to all private sector Producers of LPG including Pakistan Oilfields Ltd, OPI and others.

At the time when JJVL was set up, the Industry was expecting the Project to be shutdown within months of startup and also expected that the reservoir will deplete very sharply. JJVL became a success story and met all its financial and commercial obligations.

Therefore, at the time when the Plant was set up, there were not many takers for the LPG. We, therefore, had to encourage people known to us to enter into business and invest money on a long term basis. Many did and many did not. Offers were made to over 50 Companies at that time.

Many of the names and designations to whom JJVL supplies LPG are not correct. The correct data is available on the Website of OGRA and has been submitted to both the Supreme Court of Pakistan and the Public Accounts Committee. There is no law where any Retired General or their family members or any other individual who forms an LPG Marketing Committee cannot receive supplies. If there is, JJVL is unaware of it.

JJVL is a responsible corporate citizen and is actively involved in Community Welfare Projects in and around the Jamshoro area.

At no point of time has any advantage been taken by JJVL by making supplies for either political or improper financial gains.

JJVL runs a State of the Art Plant and recovers 99% of propane which is the highest in the Country.

Directly and indirectly it provides 5,000 jobs.

We have today issued a letter to the Chairman of the Public Accounts Committee requesting him to allow us to appear before the Committee and put the record right.

CCP has recently imposed a fine on JJVL for selling LPG on lower prices than the import price. At the same time, we are being accused of selling LPG at higher prices.

So, one of them has to be wrong.

JJVL has long urged the Government to de-link the pricing from the Saudi price and allow the benefit of lower prices to the Consumer. This has been done in writing on many occasions. Certain vested interests who are opposed to lowering of prices stopped the process through lobbying and press statements which are contrary to facts.

Every month the price of LPG is set by PARCO, OGDC and JJVL follows the same. Therefore, the dominant position is that of PARCO and OGDC.

Here also I would like to invite Khawaja Asif, yourself and all members of the Public Accounts Committee to visit Jamshoro as our guests and see the miracle that has been created. May be it will be an education for all and the truth will be separated from the false.

Also, you should speak to Companies or individuals who are receiving supplies from JJVL and ask them point blank if any supplies were given to them in exchange for a favour or were they given when they were in any position or after.

JJVL represents a 100 million Dollars investment and is a State of the Art facility which is visited regularly by many international visitors to see for themselves the high technical standards and the operating level. Indeed, it is considered one of the premier Projects in Pakistan.

On the issue of National Bank of Pakistan, I am proud to say that, by God’s grace, JJVL does not owe even one Rupee to the National Bank. At the time of loan syndication of JJVL, National Bank was one of the 20 banks which participated in this syndication and National Bank’s share was about 12% of the total loan.

In our Power Plants, National Bank has no lending in our Bhikki Project. In the Naudero Project, in which our American partners are majority shareholders, they are one of the Consortium members and not the only one. So far they have not funded any other Project for us.

In any case, National Bank should be happy to fund our Projects based on track record. We have never sought re-scheduling or interest waiver or principal amount write down and have paid all our dues ahead of time. Any bank welcomes such clients and provide facilities.

It has also been said that this gas is produced in Sindh but a majority of it goes to Punjab. It is Pakistani gas consumed in Pakistan. In any case, the break down of supplies are as follows: 1) 45% to Sindh and Karachi,

2) Two LPG Filling Plants receiving gas from JJVL are in the vicinity, 3) 5% gas to Baluchistan, 4) 20% gas to FATA, PAT A, AJK and NWFP, and 5) less than 30% is consumed in Punjab.

Three ex-MDs responsible for IDBP financial losses: report
The News 8 January, 2010

ISLAMABAD: Three former managing directors of the Industrial Development Bank of Pakistan (IDBP), who headed the bank from 1987 to 1996, are directly responsible for “imprudent lending” of Rs 15 billion, of which Rs 12 billion were later written off, says an inquiry report.

Out of total loans of Rs 22 billion distributed by the bank from 1961 to October 2001, these three MDs disbursed loans worth Rs 15 billion, most of which were subsequently written off. Not only that, the bank lost the remaining amount in non-performing loans (NPLs) and not a penny was returned to the bank.

The names of these three and other 10 MDs of the IBDP were submitted before the federal cabinet on Wednesday and the Finance Ministry bosses did not hesitate to point fingers towards these three ex-MDs for “imprudent lending”, which led to massive financial losses to the bank.

Prime Minister Yousuf Raza Gilani constituted a committee, comprising Law Minister Dr Babar Awan, Finance Minister Shaukat Tarin and others, in the cabinet meeting on Wednesday to use the FIA to recover the looted billions from the mighty business tycoons.

Earlier, the inquiry report — first of its kind into the Rs 12 billion written off loans — was submitted before the federal cabinet. It clearly showed that governments were generous in giving loans to the powerful borrowers who later refused to return them on one pretext or the other, and finally got them written off. Those who could not get the loans written off went to the courts and got the proceedings against them halted.

The report revealed that not only loans worth Rs 12 billion were written off, the bank lost additional Rs 11 billion in non-performing loans because certain powerful industrial groups never repaid the money; they all got help from the courts to stop payments of loans as their cases, remained stuck up in courts for over a decade.

The inquiry report confirmed that the IDBP, which gave Rs 25 billion to run its lending operations by the government of Pakistan and the State Bank, lost Rs 22 billion only on account of loan write-offs and non-performing loans.

According to this official inquiry report available with The News, since its inception in 1961, the IDBP distributed loans worth Rs 22.6 billion, of which Rs 15 billion were approved by these three MDs —Bashir Ahmed, Abdur Rehman and KM Nagra. Their names were presented before the federal cabinet on Wednesday by Shaukat Tarin with the note that they were actually responsible for the non-performing loans. A total of 14 MDs served the IDBP from August 1961 to October 1, 2001.

Bashir Ahmed served from April 1981 to April 1987 and the amount of non-performing loans approved during his tenure was Rs5 billion. Abdul Rehman (Sept 1989 - May 1993) disbursed loans worth Rs 5.2 billion and KM Nagra (June 1993 to June 1996) Rs 4.2 billion.

According to this list, Rashid and Z Haque, who headed the bank from August 1961 to January 1972, approved Rs 1.3 billion loans. Abdul Jabbar Khan served for the next six months and Rs 2.5 million were distributed as loans. Nasiruddin Mahmood (October 1972 to October 1975) disbursed loans worth Rs 863 million; Nasim Ahmed (November 1975 to April 1978) Rs 372 million; AR Bashir (June 1978-April 1980) Rs 165 million; Syed Aftab Zaidi (November 1980 to April 1981) Rs 762 million; MW Memon (April 1987-Aug 1988) Rs 1,564 million; Safdar Abbas Zaidi (August 1988 to April 89) Rs 1.2 billion, Masood Akhtar (April 1989 to September 1989) Rs 577 million; Tahir Abbas (December 1996 to November 1998) Rs 239 million; and Javed Sadiq (November 1998 to October 01) Rs 284 million.

Earlier, a summary was moved to the cabinet seeking details about the persons and agencies responsible for the IDBP financial problems. The State Bank was asked to investigate the matter and submit a report. The SBP report was submitted to the cabinet, which set up a three-member committee in 2006 with the mandate to examine the information provided in the SBP’s report to the cabinet. But the committee did not do its work, thus it was changed when the caretaker government of Mohammadmian Soomro was formed on November 15, 2007. The new committee comprised Syed Afzal Haider, Salman Taseer and Dr Salman Shah. The committee found that the non-performing loans of the IDBP amounting to Rs 22.646 billion as on June 30, 2002 were sanctioned over a long period from 1961 to 2001 involving 783 cases.

The committee concluded that the major chunk of NPLs was sanctioned during the period of these three MDs. The SBP was asked to conduct in-depth analysis of individual cases with a view to establishing whether proper risk and credit procedures were followed by the management before sanctioning the loans and whether any element of non-banking practice or political consideration prevailed. The SBP may also scrutinise a random sample of the written off cases so as to establish their propriety.

Ministry declines
Dawn 8 January, 2010

ISLAMABAD, Jan 6: Despite political pressure the ministry of housing and works has declined to entertain over Rs17 billion compensation sought by the contractors’ association due to price escalation of public sector projects saying the claim was neither economically fair nor legally justified.

“The government can not accept en-block claims for compensation against cost escalations as demanded by the contractors.

The payment against such claims cannot be justified under the rules”, Secretary Housing and Works Ahmad Bakhsh Lehri told Dawn on Wednesday.

The Pakistan Engineering Council (PEC) also openly came with its opposition to the contractors’ demand for compensation, saying it was shocked and surprised to hear that government was processing the contractors claim that violated the applicable procurement and engineering council rules.

It said in many cases, incapable contractors secured public sector contracts through low bids on the basis of inadequate data and experience that did not only spoil the public projects but also wasted public money that belonged to the people.

The All Pakistan Contractors Association had recently taken up the issue of compensation for escalation payments with the prime minister and since then the Planning Commission and the ministry of housing and works were under pressure to expiate the payment to contractors “as a special compensation”.

Mr Lehri said the ministry was seeking comments from various government agencies on the cumulative claim that did not make any economic sense but would listen to the viewpoint of contractors on Jan 13, to see if there was any genuine reason for cost escalation in a particular contract so that it could be examined on merit.

He said the ministry had adopted the Pakistan Engineering Council’s standard guidelines and formula for price escalation and would like to examine why these were not followed by the contractors and the executing agencies.

Responding to a question, he said the government would soon put in place a composite schedule of rates on national basis so that the issue of arbitrary cost escalations in government contracts could be done away with once and for all.

Under the schedule, the prices and premiums for all construction materials would be worked out for all cities keeping in mind factors like distance from main commercial centres, transportation and availability of material. These would be used as benchmark for all projects and contracts, he said.

PEC chairperson Rukhsana Zuberi told Dawn that the contractors’ compensation claim for cost escalation was “not justified.” She said that previously, the government had dished out billions of rupees to the contractors on similar grounds in 2004, which was a clear violation of engineering council rules.

She said the executive committee of the National Economic Council had approved the PEC standard cost escalation rules envisaging a proper methodology and mechanism for price adjustment in contracts, which should be implemented in letter and spirit. She said the PEC had recently established Pakistan Institute of Cost and Contracts (PICC) that would work out all the details of contract specifications, including material, design and services so that cost data was available for project cost estimation in a fair manner to rule out manipulation in contracts and cost escalations.

Meanwhile, Mazhar ul Islam, the executive director of PICC and convenor of PEC Acts and Contracts said that submission of contractors’ claim to the government and its consideration was “childish and shocking and the move did not have any legal justification”. He said the government could not even consider the contractors’ claim in the presence of PEC rules and if it took any political decision to give compensation to the contractors, it would have to notify amendments in the existing rules through a gazette notification.

The All Pakistan Contractors Association has submitted a claim of about Rs17 billion to the prime minister seeking escalation payments from Jan 1, 2006 to June 30, 2009. This includes a claim of Rs8.75 billion against the federal government, Punjab Rs3 billion, Sindh Rs2.8 billion, NWFP Rs1.15 billion and Balochistan Rs1.01 billion.

The APCA had based its escalation factor on a Karachi Water and Sewerage Board project funded by the Asian Development Bank (ADB) and Sindh government that was started in 1989 and completed in December 1998, which did not conform to the cost escalation formula approved by the PEC, public procurement rules and the Transparency International Pakistan.

islamabad, jan 6: despite political pressure the ministry of housing and works has declined to entertain over rs17 billion compensation sought by the contractors’ as- sociation due to price escala- tion of public sector projects saying the claim was neither economically fair nor legally justified. “the government can not accept en-block claims for compensation against cost es- calations as demanded by the contractors. the payment against such claims cannot be justified un- der the rules”, secretary housing and works ahmad bakhsh lehri told dawn on wednesday. the pakistan engineering council (pec) also openly came with its opposition to the contractors’ demand for com- pensation, saying it was shocked and surprised to hear that government was process- ing the contractors claim that violated the applicable pro- curement and engineering council rules. it said in many cases, inca- pable contractors secured public sector contracts through low bids on the basis of inadequate data and expe- rience that did not only spoil the public projects but also wasted public money that be- longed to the people. the all pakistan contractors association had recently taken up the issue of compensation for escalation payments with the prime min- ister and since then the planning commission and the ministry of housing and works were under pressure to expi- ate the payment to contrac- tors “as a special compensa- tion”. mr lehri said the ministry was seeking comments from various government agencies on the cumulative claim that did not make any economic sense but would listen to the viewpoint of contractors on jan 13, to see if there was any genuine reason for cost escala- tion in a particular contract so that it could be examined on merit. he said the ministry had adopted the pakistan engineering council’s stand- ard guidelines and formula for price escalation and would like to examine why these were not followed by the con- tractors and the executing agencies. responding to a question, he said the government would soon put in place a composite schedule of rates on national basis so that the issue of arbi- trary cost escalations in govern- ment contracts could be done away with once and for all. under the schedule, the prices and premiums for all construction materials would be worked out for all cities keeping in mind factors like distance from main commer- cial centres, transportation and availability of material. these would be used as benchmark for all projects and contracts, he said. pec chairperson rukhsana zuberi told dawn that the contractors’ compensation claim for cost escalation was “not justified.” she said that previously, the government had dished out billions of ru- pees to the contractors on sim- ilar grounds in 2004, which was a clear violation of engi- neering council rules. she said the executive com- mittee of the national economic council had ap- proved the pec standard cost escalation rules envisaging a proper methodology and mechanism for price adjust- ment in contracts, which should be implemented in let- ter and spirit. she said the pec had recently established pakistan institute of cost and contracts (picc) that would work out all the details of con- tract specifications, including material, design and services so that cost data was available for project cost estimation in a fair manner to rule out manip- ulation in contracts and cost escalations. meanwhile, mazhar ul islam, the executive director of picc and convenor of pec acts and contracts said that submission of contractors’ claim to the gov- ernment and its consideration was “childish and shocking and the move did not have any legal justification”. he said the gov- ernment could not even con- sider the contractors’ claim in the presence of pec rules and if it took any political decision to give compensation to the contractors, it would have to notify amendments in the ex- isting rules through a gazette notification. the all pakistan contrac- tors association has submit- ted a claim of about rs17 bil- lion to the prime minister seeking escalation payments from jan 1, 2006 to june 30, 2009. this includes a claim of rs8.75 billion against the fed- eral government, punjab rs3 billion, sindh rs2.8 billion, nwfp rs1.15 billion and balochistan rs1.01 billion. the apca had based its es- calation factor on a karachi water and sewerage board project funded by the asian development bank (adb) and sindh government that was started in 1989 and completed in december 1998, which did not conform to the cost escala- tion formula approved by the pec, public procurement rules and the transparency international pakistan.

SECP acts against mill for cheating shareholders
Dawn 8 January, 2010

Jan 6: Securities and Exchange Commission of Pakistan (SECP), will conduct an investigation against Ahmed Spinning Mills Ltd (ASML) for causing losses of Rs213.42 million to its shareholders in 2004. The SECP issued directives after the appeal filed by the mills management was rejected by the apex court.

The commission has asked the ASML shareholders, who held the shares of the company on 10-11-2004 to file their claims with the Securities and Exchange Commission of Pakistan at its head office along with the relevant documentary evidence of their shareholdings, on or before Feb 10. The claim forms containing the prescribed procedure and list of supporting documents are available at the SECP website and it can be obtained from companies’ registration offices.

The Securities and Exchange Commission of Pakistan had ceased the funds and launched investigation against ASML in 2004 after reports that it was cheating the shareholders.

jan 6: securi- ties and exchange commis- sion of pakistan (secp), will conduct an investigation against ahmed spinning mills ltd (asml) for causing losses of rs213.42 million to its shareholders in 2004. the secp issued directives after the appeal filed by the mills management was rejec- ted by the apex court. the commission has asked the asml shareholders, who held the shares of the compa- ny on 10-11-2004 to file their claims with the securities and exchange commission of pakistan at its head office along with the relevant docu- mentary evidence of their shareholdings, on or before feb 10. the claim forms con- taining the prescribed proce- dure and list of supporting documents are available at the secp website and it can be obtained from companies’ registration offices. the securities and exchan- ge commission of pakistan had ceased the funds and launched investigation against asml in 2004 after reports that it was cheating the shareholders.

RCB faces resistance in removing encroachments
Dawn 8 January, 2010

RAWALPINDI, Jan 6: The Rawalpindi Cantonment Board (RCB) during a drive launched this week faces resistance in removing encroachments which have now gained permanent status.

The toughest resistance comes from the encroachers on both sides of the Peshawar Road where they have not even spared footpaths built for pedestrians. The footpaths are swamped by shops, workshops, vehicles and taxi stands.

The RCB has deployed scores of its sanitation staff supported by anti-encroachment squads for the removal of the encroachments.

Meanwhile, another Pirwadhai has emerged on the Peshawar Road under the very nose of Traffic Police post close to Daewoo Bus Terminal. The post has strengthened its own security by putting cemented blocks and barricades rather than maintaining the flow of traffic and keeping the area clear from unauthorised parking of vehicles.

Over the past few months, the Peshawar Road near Pirwadhai Mor named Samiul-Haq Shaheed Chowk has bee widened on both sides in addition to construction of an underpass and an overhead bridge. However, the widened area has silently and gradually come under the extensive use of encroachers who have set up shops and stalls on both sides of the road. It is now a hub of shops, cart-pullers and street vendors.

From the situation, it appears that the newly constructed bus stop has now been illegally converted into a mini Pirwadhai where buses, wagons and Suzuki vans block the Peshawar Road throughout the day.

Another element of the encroachments is the roadside washing of vehicles around the Daewoo bus terminal where the exercise not only damages the road but also pollutes environment.

While the footpaths have been taken over by shopkeepers, scores of youth are seen washing public and private vehicles with buckets of water. The condition of the road in this particular area was turning from bad to worse but neither traffic staff nor the RCB staff ever dared to remove such encroachments.

The bus stop near the gate of Koh-i-Noor Mills on the Peshawar Road has become yet another hub of public transport.This area is perhaps out-of-bound for traffic wardens. —Our Reporter

rawalpindi, jan 6: the rawalpindi cantonment board (rcb) during a drive launched this week faces re- sistance in removing en- croachments which have now gained permanent status. the toughest resistance comes from the encroachers on both sides of the peshawar road where they have not even spared footpaths built for pedestrians. the footpaths are swamped by shops, workshops, vehicles and taxi stands. the rcb has deployed scores of its sanitation staff supported by anti-encroach- ment squads for the removal of the encroachments. meanwhile, another pirwadhai has emerged on the peshawar road under the very nose of traffic police post close to daewoo bus terminal. the post has strengthened its own security by putting cemented blocks and barricades rather than maintaining the flow of traf- fic and keeping the area clear from unauthorised parking of vehicles. over the past few months, the peshawar road near pirwadhai mor named sami- ul-haq shaheed chowk has bee widened on both sides in addition to construction of an underpass and an overhead bridge. however, the widened area has silently and gradual- ly come under the extensive use of encroachers who have set up shops and stalls on both sides of the road. it is now a hub of shops, cart-pullers and street vendors. from the situation, it ap- pears that the newly construc- ted bus stop has now been il- legally converted into a mini pirwadhai where buses, wag- ons and suzuki vans block the peshawar road throughout the day. another element of the en- croachments is the roadside washing of vehicles around the daewoo bus terminal where the exercise not only damages the road but also pollutes environment. while the footpaths have been taken over by shop- keepers, scores of youth are seen washing public and pri- vate vehicles with buckets of water. the condition of the road in this particular area was turning from bad to worse but neither traffic staff nor the rcb staff ever dared to remove such en- croachments. the bus stop near the gate of koh-i-noor mills on the peshawar road has become yet another hub of public transport.this area is perhaps out-of-bound for traffic war- dens. —our reporter

Corruption in high offices
Dawn 8 January, 2010

APROPOS of India’s Asian Age report, ‘It’s best to avoid impeachment’ (Dec 20), Bina Shah’s article, ‘The psychology of corruption’ (Dec 21) and Abdul Sattar Pingar’s letter, ‘Illegal assets’ (Dec 21). I should say that in the wake of the Supreme Court’s anti-NRO judgment, the issue of corruption is vigorously being debated with clarity and the best of minds.

A few gleanings which appealed me the most are:

a. The moral character of a constitutional functionary should always be above board. The name of the Chief Justice of Karnataka High Court was cleared for India’s Supreme Court but retracted owing to the allegations of land scam.

It was, therefore, was clear that he could not be elevated to the apex court. Asian Age aptly advises the judge: “…the judge should ideally have left the field at the first whiff of scandal, real or presumed. This is an important basis to proceed in a democracy….” b. “When the mind and the soul of a politician is entirely corrupted, he wouldn’t feel an iota of shame, whether at home or abroad, uttering before a US TV talk show panel as per Bina Shah’s article: “… corruption hamara haq hai…” Bina Shah comes out succinctly with a correct solution: “…. corruption should be paired with harsh jail terms…loss of property, assets and reputation….” c. Being in the vanguard, eminent lawyers of the country led the auspicious lawyers’ movement. If they go astray it would then be the debacle of this movement. There is no alternative for them but to pay heed to the clarion call of advocate Abdul Sattar Pingar. MOHAMMAD AHMAD Karachi

apropos of india’s asian age report, ‘it’s best to avoid impeachment’ (dec 20), bina shah’s article, ‘the psycholo- gy of corruption’ (dec 21) and abdul sattar pingar’s letter, ‘illegal assets’ (dec 21). i should say that in the wake of the supreme court’s anti-nro judgment, the is- sue of corruption is vigorous- ly being debated with clarity and the best of minds. a few gleanings which ap- pealed me the most are: a. the moral character of a constitutional functionary should always be above board. the name of the chief justice of karnataka high court was cleared for india’s supreme court but retracted owing to the allegations of land scam. it was, therefore, was clear that he could not be elevated to the apex court. asian age aptly advises the judge: “…the judge should ideally have left the field at the first whiff of scandal, real or pre- sumed. this is an important basis to proceed in a democ- racy….” b. “when the mind and the soul of a politician is entirely corrupted, he wouldn’t feel an iota of shame, whether at home or abroad, uttering be- fore a us tv talk show panel as per bina shah’s article: “… corruption hamara haq hai…” bina shah comes out suc- cinctly with a correct solu- tion: “…. corruption should be paired with harsh jail terms…loss of property, as- sets and reputation….” c. being in the vanguard, eminent lawyers of the coun- try led the auspicious law- yers’ movement. if they go as- tray it would then be the de- bacle of this movement. there is no alternative for them but to pay heed to the clarion call of advocate abdul sattar pingar. mohammad ahmad karachi

Illegal plazas ACE fails to arrest most officials
Dawn 8 January, 2010

LAHORE, Jan 6: The AntiCorruption Establishment could not arrest a majority of the officials who allegedly connived in the construction of illegal plazas due to their wrong addresses in official record, a meeting presided over by Chief Secretary Javed Mahmood heard here on Wednesday.

The chief secretary was informed that the addresses and contact numbers of a majority of the marked officials of the Lahore Development Authority (LDA), the City District Government of Lahore (CDGL), local government and housing departments available in their record books were wrong, and they could not be traced.

The statement reportedly made the chief secretary angry and he asked the Lahore Development Authority chairman and the district coordination officer to immediately update record books of the officials, putting in detail of their service record and assets.

lahore, jan 6: the anti- corruption establishment could not arrest a majority of the officials who allegedly connived in the construction of illegal plazas due to their wrong addresses in official record, a meeting presided over by chief secretary javed mahmood heard here on wednesday. the chief secretary was informed that the addresses and contact numbers of a majority of the marked offi- cials of the lahore development authority (lda), the city district government of lahore (cdgl), local government and housing departments available in their record books were wrong, and they could not be traced. the statement reportedly made the chief secretary an- gry and he asked the lahore development authority chairman and the district coordination officer to immediately update record books of the officials, putting in detail of their service record and assets.

Missing persons: judge calls it Gestapo-like reign of terror
Dawn 8 January, 2010

ISLAMABAD, Jan 6: The Supreme Court declared on Wednesday the term of “missing persons” applied to all people picked up by intelligence agencies.

“Missing persons are only those who have been picked up by intelligence agencies as we cannot include every case of ransom, abduction or enmity into the category of missing persons,” observed Justice Javed Iqbal, head of a three-judge bench hearing the missing person cases on petitions filed by the Human Rights Commission of Pakistan, Muttahida Qaumi Movement, Defence of Human Rights and the Human Rights Network.

The bench, which includes Justice Raja Fayyaz and Justice Mohammad Sair Ali, summoned the Inspector General of Frontier Constabulary and Major Ibrahim next week to explain how Mustafa Azam, an accused in the Hayatabad (Peshawar) bombing, went missing after he dad been arrested his involvement in the blast but released within an hour.

The Supreme Court also wanted to know why names of brigadiers or majors always surfaced whenever cases of missing persons were taken up for hearing. Who had given them the right, it asked, to pick up individuals at will?

“There is a reign of terror like Gestapo and anyone can just barge into someone’s house to pick anyone,” Justice Raja Fayyaz said.

The court would be satisfied even if one person was recovered and the anxiety of one family was addressed, Justice Iqbal observed.

Mr Azam, father of Mustafa Azam who has been missing since 2006 from Sindh, informed the court that Major Ibrahim of the FC admitted that his son had been picked up for his involvement in the Hayatabad blast, but released after an hour. Since then, he added, he had gone to several prisons and met many people, but had not been able to trace his son.

The working of the FC had no semblance of the law, the court said, adding that the FC had no right to arrest or detain any person.

The court asked the FC to carry out what assigned to it under the law and said that its interference in civilian matters should not exceed the directives given to it.

“What kind of democracy is this where there is no respect for human rights,” Justice Iqbal said, adding that the entire system was on the verge of collapse, but there was al ways a hue and cry whenever there was an intervention by the court.

HRCP chairperson Asma Jehangir told the court that 31 people, including a Norwegian, Ehsanullah Arjumandi, had been picked up from Balochistan after the installation of the PPP government.

Justice Iqbal said he had seen the record of Mr Arjumandi who in fact belonged to Iran and even his relatives had claimed that he used to travel on counterfeit Pakistani identity card.

“From where you have derived the authenticity that he was picked up by security agencies,” the court asked and deplored that in dozens of cases intelligence agencies had denied that the person in question was in their custody. “We have written statement of the driver of the bus from which Mr Arjumandi was picked and even the Norwegian embassy had acknowledged that the accused was a Norwegian national of Irani origin,” Ms Jehangir said.

She demanded the setting up of a commission to look into the issue of missing persons in Balochistan and to proceed against those responsible. She also called for payment of compensation to the victims.

islamabad, jan 6: the supreme court declared on wednesday the term of “missing persons” applied to all people picked up by intelligence agencies. “missing persons are only those who have been picked up by intelli- gence agencies as we cannot in- clude every case of ransom, abduc- tion or enmity into the category of missing persons,” observed justice javed iqbal, head of a three-judge bench hearing the missing person cases on petitions filed by the human rights commission of pakistan, muttahida qaumi movement, defence of human rights and the human rights network. the bench, which includes justice raja fayyaz and justice mohammad sair ali, summoned the inspector general of frontier constabulary and major ibrahim next week to explain how mustafa azam, an accused in the hayatabad (peshawar) bombing, went missing after he dad been arrested his in- volvement in the blast but released within an hour. the supreme court also wanted to know why names of brigadiers or majors always surfaced whenever cases of missing persons were taken up for hearing. who had given them the right, it asked, to pick up indi- viduals at will? “there is a reign of terror like gestapo and anyone can just barge into someone’s house to pick any- one,” justice raja fayyaz said. the court would be satisfied even if one person was recovered and the anxiety of one family was ad- dressed, justice iqbal observed. mr azam, father of mustafa azam who has been missing since 2006 from sindh, informed the court that major ibrahim of the fc admitted that his son had been picked up for his involvement in the hayatabad blast, but released after an hour. since then, he added, he had gone to several prisons and met many people, but had not been able to trace his son. the working of the fc had no semblance of the law, the court said, adding that the fc had no right to arrest or detain any person. the court asked the fc to carry out what assigned to it under the law and said that its interference in civilian matters should not exceed the directives given to it. “what kind of democracy is this where there is no respect for human rights,” justice iqbal said, adding that the entire system was on the verge of collapse, but there was al- ways a hue and cry whenever there was an intervention by the court. hrcp chairperson asma jehangir told the court that 31 peo- ple, including a norwegian, ehsanullah arjumandi, had been picked up from balochistan after the installation of the ppp govern- ment. justice iqbal said he had seen the record of mr arjumandi who in fact belonged to iran and even his rela- tives had claimed that he used to travel on counterfeit pakistani identity card. “from where you have derived the authenticity that he was picked up by security agencies,” the court asked and deplored that in dozens of cases intelligence agencies had denied that the person in question was in their custody. “we have written statement of the driver of the bus from which mr arjumandi was picked and even the norwegian embassy had acknowl- edged that the accused was a norwegian national of irani ori- gin,” ms jehangir said. she demanded the setting up of a commission to look into the issue of missing persons in balochistan and to proceed against those re- sponsible. she also called for pay- ment of compensation to the vic- tims.

Distinguished figures among LPG quota beneficiaries
Dawn 8 January, 2010

ISLAMABAD, Jan 6: The Public Accounts Committee (PAC) of the National Assembly has called for a review of the mechanism for fixing the price of liquefied petroleum gas (LPG) to end what it termed monopoly of a private sector company which, some PAC members alleged, has been showering favours on influential people to strengthen its control on the sector.

At a special meeting of the committee held on Wednesday, Khwaja Asif of the PML-N and another member said that a former prime minister, former chairman of NAB, former governor of Punjab, two former interior ministers, a sitting federal minister, incumbent president of the National Bank of Pakistan and a prominent leader of the lawyers’ movement were among a large number of people who had been granted the quota by the Jamshoro Joint Venture Ltd (JJVL) on favourable terms.

According to Mr Asif, JJVL Chairman Iqbal Z. Ahmad had shared with almost everybody “in the corridors of power” the windfall profits he had managed over the years in the LPG sector.

The PAC meeting discussed the recent 18 per cent increase in gas price by the Oil and Gas Regulatory Authority (Ogra) and continuous losses reported by both Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL). PAC chairman Chaudhry Nisar Ali of the PML-N presided over the meeting.

Mr Asif said that those who had benefited from Mr Ahmad’s “benevolence” included former prime minister Chaudhry Shujaat Hussain, former chairman of NAB Gen (retd) Munir Hafeez, federal Minister for Investment Senator Gulzar Ahmad, former interior ministers Gen (retd) Moeenuddin and Aftab Sherpao, former governor of Punjab Gen (retd) Khalid Maqbool, NBP President Syed Ali Raza and Barrister Aitzaz Ahsan. These people, he said, got gas companies registered in the names of their relatives and they earned millions of rupees from the LPG quota given by the JJVL.

Others beneficiaries included Captain (retd) Bisharat and Brigadier (retd) Siraj, friends of Gen Pervez Musharraf; Gen (retd) Tariq Majeed; Humayun Farid, diplomat; Gen (retd) Rehmat Khan, Chairman of Pakistan Cement; Rizwan Punjwani, head of NBP Credit, Karachi; Ishtiaq Asif of NBP, Karachi; and Jamal Akbar Ansari, a friend of Iqbal Ahmad.

“By all means it was bribe which Mr Ahmad used to get favours from people in power,” Mr Asif said. Members of the PAC representing PPP, PML-Q, and PML-N supported the contention that the LPG quota had been misused.

Accepting the fact that massive irregularities had been committed in the past, Secretary Petroleum Mahmood Salim Mahmood said the LPG sector needed a thorough scrutiny, especially its price fixing mechanism. Since the JJVL had a monopoly in the market it was doing business at its own terms, the secretary argued.

Last month, the Competition Commission of Pakistan (CCP) had imposed a fine of Rs278 million, around 4 per cent of profits, on the JJVL for cartelisation in the LPG sector.

The PAC was informed that the production cost of one kg of LPG was Rs9, and it gas was sold at Rs72 to the end consumer. And, 95 per cent of LPG is produced locally. “With this kind of price mech anism in place, we are mercilessly fleecing our poor people,” Rana Mehmoodul Hassan, another member of the committee remarked.

When asked, Ogra Chairman Touqir Sadiq said that under the existing rules the authority had no provision to check profit-making in the LPG sector.

The committee asked the secretary petroleum and natural resources to come back in 10 days with an actionable plan to effectively control the LPG price.

The committee also directed managing directors of the SSGC and SNGPL to explain their price mechanism in the next meeting with special reference to the recent 18 per cent increase in gas price. “Don’t force people to come on the road,” Chaudhry Nisar remarked.

He criticised the government and said it appeared to be “sleeping on the issue of gas price. Had it been managed well, there was no need to call this special meeting of the PAC.” The committee decided to conduct a special audit of both the gas companies and asked Auditor General Tanvir Ali Agha to make arrangements for the purpose.

islamabad, jan 6: the public accounts committee (pac) of the national assembly has called for a re- view of the mechanism for fix- ing the price of liquefied pe- troleum gas (lpg) to end what it termed monopoly of a private sector company which, some pac members alleged, has been showering favours on influential people to strengthen its control on the sector. at a special meeting of the committee held on wednesday, khwaja asif of the pml-n and another mem- ber said that a former prime minister, former chairman of nab, former governor of punjab, two former interior ministers, a sitting federal minister, incumbent presi- dent of the national bank of pakistan and a prominent leader of the lawyers’ move- ment were among a large number of people who had been granted the quota by the jamshoro joint venture ltd (jjvl) on favourable terms. according to mr asif, jjvl chairman iqbal z. ahmad had shared with almost every- body “in the corridors of pow- er” the windfall profits he had managed over the years in the lpg sector. the pac meeting dis- cussed the recent 18 per cent increase in gas price by the oil and gas regulatory authority (ogra) and continu- ous losses reported by both sui southern gas company (ssgc) and sui northern gas pipelines limited (sngpl). pac chairman chaudhry nisar ali of the pml-n presi- ded over the meeting. mr asif said that those who had benefited from mr ahmad’s “benevolence” in- cluded former prime minister chaudhry shujaat hussain, former chairman of nab gen (retd) munir hafeez, federal minister for investment senator gulzar ahmad, for- mer interior ministers gen (retd) moeenuddin and aftab sherpao, former governor of punjab gen (retd) khalid maqbool, nbp president syed ali raza and barrister aitzaz ahsan. these people, he said, got gas companies registered in the names of their relatives and they earned millions of rupees from the lpg quota given by the jjvl. others beneficiaries inclu- ded captain (retd) bisharat and brigadier (retd) siraj, friends of gen pervez musharraf; gen (retd) tariq majeed; humayun farid, dip- lomat; gen (retd) rehmat khan, chairman of pakistan cement; rizwan punjwani, head of nbp credit, karachi; ishtiaq asif of nbp, karachi; and jamal akbar ansari, a friend of iqbal ahmad. “by all means it was bribe which mr ahmad used to get favours from people in pow- er,” mr asif said. members of the pac representing ppp, pml-q, and pml-n suppor- ted the contention that the lpg quota had been misused. accepting the fact that massive irregularities had been committed in the past, secretary petroleum mahmood salim mahmood said the lpg sector needed a thorough scrutiny, especially its price fixing mechanism. since the jjvl had a monop- oly in the market it was doing business at its own terms, the secretary argued. last month, the competi- tion commission of pakistan (ccp) had imposed a fine of rs278 million, around 4 per cent of profits, on the jjvl for cartelisation in the lpg sector. the pac was informed that the production cost of one kg of lpg was rs9, and it gas was sold at rs72 to the end consumer. and, 95 per cent of lpg is produced locally. “with this kind of price mech- anism in place, we are merci- lessly fleecing our poor peo- ple,” rana mehmoodul hassan, another member of the committee remarked. when asked, ogra chairman touqir sadiq said that under the existing rules the authority had no provi- sion to check profit-making in the lpg sector. the committee asked the secretary petroleum and nat- ural resources to come back in 10 days with an actionable plan to effectively control the lpg price. the committee also direc- ted managing directors of the ssgc and sngpl to explain their price mechanism in the next meeting with special ref- erence to the recent 18 per cent increase in gas price. “don’t force people to come on the road,” chaudhry nisar remarked. he criticised the govern- ment and said it appeared to be “sleeping on the issue of gas price. had it been man- aged well, there was no need to call this special meeting of the pac.” the committee decided to conduct a special audit of both the gas companies and asked auditor general tanvir ali agha to make arrange- ments for the purpose.

Acting OGDCL chief accused of lacking necessary qualifications
Business Recorder 7 January, 2010

ISLAMABAD (January 07 2010): The Prime Minister's Secretariat has reportedly played a vital role in the appointment of Shah Mehbub Aalam as the Acting Managing Director of Oil and Gas Development Company Limited (OGDCL), a man who has been accused of lacking the required qualification and experience.

Sources told Business Recorder that Aalam earlier worked as security incharge in the Prime Minister's House. "He has no relevant qualifications or experience in the oil and gas fields," sources added. Ministry of Petroleum and Natural Resources recently notified the appointment of new acting MD/CEO of the OGDCL as the sitting boss of the company applied for a seven-week sick leave.

The proposal to appoint a three-man committee instead of one man to head the organisation for the seven weeks was dropped. "The Petroleum Ministry was under immense pressure from Prime Minister Secretariat to entrust the acting charge to Shah Mehbub Aalam," sources said adding that OGDCL has already failed to achieve the set targets of drilling wells and the acting MD will add to the miseries of the company due to a serious lack of experience in the concerned field.

The OGDCL controls about 45 percent of the country's oil reserves and 35 per cent of natural gas reserves. And its share in the country's oil production is 61 per cent and its gas output accounts for 25 percent of the national gas production.

The oil production of the OGDCL has declined from about 54,000 barrels per day (BPD) to about 37,500 BPD in almost 18 months while gas production has come down from about 1,200 million cubic feet per day (MMCFD) to less than 1,000 MMCFD. As of December 22, the OGDCL was able to spud only six wells against a target of 42 wells, set for the year ending June 30, 2010

Across-the-board accountability sans revenge need of the hour’
The News 6 January, 2010

ISLAMABAD: State Minister for Information and Broadcasting Syed Sumsam Ali Bukhari has said that across-the-board accountability sans revenge of all and sundry should be ensured, aiming at putting the country back on the right track.

Talking to a TV channel on Wednesday, he said the superior courts should punish even ministers, if corruption charges against them were proven. The Pakistan People’s Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) have agreed to restore the Constitution of 1973 in its original shape, he said.

“Above all, the concerns of provinces are also being addressed,” he said.Regarding the National Reconciliation Ordinance (NRO), the minister said the PPP was facing no threat from the ordinance. Criticising ‘non-state actors’, he said the elements wanted to destabilise the democratic system.

NAB seeking more budget to fight reopened cases
The News 7 January, 2010

ISLAMABAD: The National Accountability Bureau (NAB) is seeking more funds from the federal government to meet additional expenses to be incurred on hundreds of corruption references in the accountability and other courts after the Supreme Court shot down the National Reconciliation Ordinance (NRO).

The NAB is soon sending a proposal for additional funds to Prime Minister Syed Yousuf Raza Gilani through the federal law ministry, a senior official told The News. He said more special prosecutors, investigators and other personnel would have to be hired to dispose of the increased work. He said unless these deficiencies were met, the NAB would not be able to effectively carry out its activities.

The official said the NAB’s work had been considerably reduced due to the scrapping of corruption references under the NRO, but it tremendously amplified after the Dec 16 apex court short order.

He said no fresh inquiries and investigations into corruption could be undertaken without meeting the present shortcomings. The official said the government allocated to the NAB less funds for the outgoing financial year. He said in the current fiscal year, the government had slashed the funds by Rs 210 million.

Now, he said, the NAB was going to approach the government to make at least this much money available so that it could take care of its increasing expenses.The official said the government had not provided the entire funds earmarked for the year in one go but had been releasing the money after every three months. At times, the delay in getting the funds creates difficulties for the NAB, he said.

He said the NAB was not very hopeful of a favourable response from the law ministry because of its general attitude towards this organisation since the government came to power and especially after it prepared and presented to the law minister — and, subsequently, the Supreme Court — the list of NRO beneficiaries. He said the NAB would have to face a lot of questions from the incumbent law minister about its request for more money.

The official pointed out apart from the general hostile attitude of the government towards the NAB, the law minister was annoyed with the NAB for issuing him a notice, along with a few other lawyers, to reply to the charge of a Harris Steel director that they had received hefty amounts from him to get a favourable judgment from the judiciary headed by Justice Abdul Hameed Dogar.

He said although the NAB, while remaining within its financial constraints, was faithfully performing its duty in pursuing the corruption references in the accountability courts etc., its work was totally disapproved of by the government as a whole.

The official said the NAB would not show any laxity as the Supreme Court was monitoring the progress and proceedings in trial courts with a special reference to the role of the NAB prosecutors and its other officials.

Corruption alarms Indian prime minister
The News 7 January, 2010

NEW DELHI: Corruption has made a record increase in India in the recent years, which is eating up the organisational set-ups in government, public private sectors. Realising the gravity of the situation, Indian Prime Minister Manmohan Singh has cautioned heads of ministries and departments about the rise in corruption.

He stressed on wiping out corruption form the government departments. Two months back, while addressing Director General’s conference at New Delhi and earlier at the biennial conference of the CBI and its Anti-Corruption Bureau Singh had also urged officers for the Central Bureau of Investigation (CBI) to collectively stamp out the scourge that was affecting the public life.

It is pertinent to mention here that corruption has distorted the rule of law and weakened the Indian institutions. The Indian economic growth has also witnessed a decline due to the same and India’s image has also been tarnished.

Illegal plazas 44 officials’ names put on ECL
Dawn News 7 January, 2010

LAHORE, Jan 5: The provincial home department put on the exit control list (ECL) names of 44 officials after the chief secretary on Tuesday ordered action against them on charges of helping construction of illegal plazas in the provincial metropolis. The chief secretary reportedly gave these orders during a meeting which was attended by the home secretary, housing secretary, Lahore commissioner, district coordination officer and AntiCorruption Establishment (ACE) director-general.

The meeting also considered sending cases of these officials to the ACE for action.

Sources said that of the 44 enlisted officials, 10 belonged to the local government department, eight to the City District Government of Lahore, two to the housing department and 24 to the Lahore Development Authority.

Some of them are Shahid Nazir, Ms Nargis Maqbool, Shahnawaz Hasan, Rao Imtiaz, Rai Muhammad Ashraf, Ahmad Zaman and Qazi Naimatullah.

DEMOLITION: Pedestrians can now walk on the passage made a ‘no-go’ area for them by the management of a multi-storey commercial plaza on Gulberg’s Main Boulevard, as the Lahore Development Authority (LDA) has pulled down all encroachments there.

A fountain installed at the place reserved for parking in front of Siddiq Trade Centre was demolished by LDA staff on Tuesday besides the ground floor corridor of security control room and a booking office.

In line with the orders of the Supreme Court, the LDA started demolition of illegal parts of Siddiq Trade Centre on Monday. The basement area reserved for parking was cleared of residential rooms for security guards and offices. The booking office of the plaza at the space reserved for parking on the ground floor was pulled down and the place allocated for toilets on the first floor was also retrieved.

Shops raised on the area earmarked for prayers on the second floor were grounded and emergency exit stairs for third floor were also retrieved.

Headed by Azhar Shah, traders of Siddiq Trade Centre had drawn the attention of the Supreme Court toward the construction of illegal structures in the parking lot, emergency exits and toilets besides the area reserved for prayers in the commercial plaza. The Supreme Court on Dec 29 ordered the Punjab government to pull down within a week all structures built in violation of the approved site plan.

lahore, jan 5: the pro- vincial home department put on the exit control list (ecl) names of 44 officials after the chief secretary on tuesday or- dered action against them on charges of helping construc- tion of illegal plazas in the provincial metropolis. the chief secretary report- edly gave these orders during a meeting which was atten- ded by the home secretary, housing secretary, lahore commissioner, district coordi- nation officer and anti- corruption establishment (ace) director-general. the meeting also consid- ered sending cases of these officials to the ace for ac- tion. sources said that of the 44 enlisted officials, 10 belonged to the local government de- partment, eight to the city district government of lahore, two to the housing department and 24 to the lahore development authority. some of them are shahid nazir, ms nargis maqbool, shahnawaz hasan, rao imtiaz, rai muhammad ashraf, ahmad zaman and qazi naimatullah. demolition: pedestrians can now walk on the passage made a ‘no-go’ area for them by the manage- ment of a multi-storey com- mercial plaza on gulberg’s main boulevard, as the lahore development authority (lda) has pulled down all encroachments there. a fountain installed at the place reserved for parking in front of siddiq trade centre was demolished by lda staff on tuesday besides the ground floor corridor of se- curity control room and a booking office. in line with the orders of the supreme court, the lda started demolition of illegal parts of siddiq trade centre on monday. the basement area reserved for parking was cleared of residential rooms for security guards and offi- ces. the booking office of the plaza at the space reserved for parking on the ground floor was pulled down and the place allocated for toilets on the first floor was also re- trieved. shops raised on the area earmarked for prayers on the second floor were grounded and emergency exit stairs for third floor were also re- trieved. headed by azhar shah, traders of siddiq trade centre had drawn the atten- tion of the supreme court to- ward the construction of ille- gal structures in the parking lot, emergency exits and toi- lets besides the area reserved for prayers in the commercial plaza. the supreme court on dec 29 ordered the punjab government to pull down within a week all structures built in violation of the ap- proved site plan.

Taiwan-Former President
Daily News 6 January, 2010

TAIPEI, Taiwan (AP) - Taiwanese prosecutors have indicted former Taiwanese President Chen Shui-bian on new bribery and money-laundering charges.

He is currently serving a life sentence after a court convicted him of wide-ranging corruption offenses in September. Chen is appealing that conviction. Thursday's indictment says Chen received bribes worth NT$610 million (US$19 million) from bankers in connection with two merger deals. It says he shared part of the money with his wife, Wu Shu-chen.

Wu was also convicted of corruption offenses in September, and like Chen, sentenced to life. But unlike Chen, she is not being held in prison while her case is appealed.

Democracy, inaction cannot work hand in hand: Nawaz
The News 6 January, 2010

LAHORE: Pakistan Muslim League-N Chief Nawaz Sharif Saturday urged the people to stand together against corruption and inaction just like they did before for becoming an atomic power and restoration of judiciary.

He expressed these views during the meeting of provincial organizing committee in Lahore.

Democracy and inaction cannot work hand in hand nor any civilized and democratic society pardons an act of corruption, Nawaz Sharif asserted.

The need of the hour is that the government should take up the challenges with due solemnity, he added.

He said the internal and external enemies have caused massive damage to the country.

The PML-N chief also called for accountability of those who got their loans waived as well as the murderers of Akbar Bugti.

He stressed that affairs of the country be carried out not by a single person but with mutual consultation.

Nawaz for brining back Swiss money
Pakistan Times 6 January, 2010

ISLAMABAD: Pakistan Muslim League-N leader Mina Nawaz Sharif has said that money present in the Swiss banks should be brought back to the national exchequer.

Addressing the party meeting here on Thursday, he said the present system is not facing any kind of threat or conspiracy, but added if there is any real threat it is from the undemocratic attitude of the government.

According to a statement issued by the party, Mian Nawaz Sharif said time has come that he should play active part in stabilizing democracy, strengthening the institutions and supremacy of law.

I made a pledge to the people that corruption, incompetency and useless politics would not be tolerated at all, he said and added such things were not only undermining the politicians but could also endanger the future of democracy in the country.

The two-time premier said situation is grave in the country. He said his party would launch a movement to improve the country’s prevailing situation. No individual, he said, could be allowed to decide the country’s fate alone.

The money in Swiss banks should be brought back to Pakistan, as it is the money of public, he added.

According to another report, the leader of Pakistan Muslim League (PML-N) Mian Nawaz Sharif has said there is no threat to system neither anyone is hatching conspiracy.

Addressing a party meeting, Nawaz Sharif said undemocratic attitude of government could poses threat. He said country’s situation is grave and we should play our due role.

He said PML-N will launch a movement to improve the situation of the country. No individual could given the right to decide country’s fate alone, he added.

Alleged corruption in MoC: National Assembly body to take up cases on January 7
Pakistan Times 6 January, 2010

ISLAMABAD (January 06 2010): Allegations of corruption in the Ministry of Commerce (MoC) and its attached organisations, especially the Directorate General of Trade Organisation (DGTO), will be discussed at a meeting of the National Assembly's Standing Committee on Commerce on Thursday (January 7).

The meeting will be presided over by the committee's Chairman Engineer Khurram Dastgir, an energetic MNA. Well-informed sources told Business Recorder on Tuesday that Senator Ilyas Bilour, who is chairman of Senate's Standing Committee on Commerce, has expressed his intent to attend the meeting where he is expected to make disclosures.

The committee, the sources said, had also invited representatives of the chambers, who had reportedly made several complaints about alleged corruption in the Commerce Ministry and the DGTO. Commerce Minister's Director Farhan Junejo, who officially has no posting orders in the Commerce Ministry or any of its attached departments till the filing of this report, is handling the affairs of the attached entities.

The sources told this scribe that Commerce Minister Makhdoom Amin Fahim had ordered an inquiry against his own "unofficial" Director for misusing his name in the issuance of export permits for products, which were banned in the Trade Policy.

One of the top officials of the Trading Corporation of Pakistan (TCP), who has recently been "ousted" from the organisation on "omission and commission" charges is also publicly accusing the "Director" of corruption. "I will disclose the Commerce Minister's office backed corruption in the TCP," he told this correspondent. Another TCP Director Sikandar Shah was also seen in Islamabad on Tuesday.

The Commerce Minister's close aides revealed to this scribe that both Sikandar Shah and Farhan Junejo had held a meeting to discuss the "common objectives." According to the sources, Commerce Secretary Zafar Mahmood has recently sent a requisition to the Sindh government for Junejo's posting in the Commerce Ministry, but Chief Minister Sindh Qaim Ali Shah is resisting the posting.

The Commerce Secretary has already directed the unofficial "Director" not to sign official files until he gets his posting orders in the Commerce Ministry. When contacted, the Commerce Secretary confirmed that he had barred Farhan Junejo from signing official files. "I have also asked the Commerce Minister to ratify some of the decisions taken by the "Director" on his behalf," he added.

Clarifying the reports related to requisition of Junejo, he said that his predecessor had written to the Establishment Division to place his services within the Commerce Ministry. "In continuation of earlier communication, I have written a letter to the Sindh Chief Secretary," he confirmed.

PAC to discuss 15 mega corruption scams
Financial Post 6 January, 2010

F.P. Report ISLAMABAD: Public Accounts Committee (PAC) of the National Assembly would discuss 15 mega alleged corruption scams, including irregularities committed in Stock Exchange and Defense Housing Authority projects, during its session starting on Wednesday. The committee is scheduled to meet under the chairmanship of Chaudhry Nisar Ali Khan, here at Parliament House on Wednesday morning. It would take up the cases of alleged irregularities reported in various state institutions, sources said. Besides, the chairman Auditor General of Pakistan Secretariat would also table audit reports of Nawaz League government tenures before the committee within this or next sessions, they added. Land allotment scandals would top PAC agenda as it would question allotment of more than one plot to federal secretaries, heads of the departments and various top officials in the federal capital or otherwise in other areas. So far the committee had been discussing audit reports of 1991-92, 1993-94, 1995-96, 1998-99, and 2000- 02 as part of its agenda. Noting that these tenures were mostly ruled by Pakistan Peoples Party and other Parties, the chairman has asked that record of the PML-N government tenures should also be brought for discussion, sources said.

NUML rector, directors caught by own auditors, University management rejects all charges
The News 6 January, 2010

ISLAMABAD: An audit report of the Army-run National University of Modern Languages (NUML) has found that its Rector, a retired Army brigadier, was also receiving the salary of a night watchman (security supervisor), getting tax rebates as a researcher and had sent his daughter and son-in-law abroad using the university scholarships.

While the NUML management has given some lame justifications for these acts, the auditors have found them unsatisfactory. The report finds that out of three scholarship grants, two were granted to the Rector’s family members. A grant of Rs 15.4 million allocated for setting up linkages and exchange of visits with the Utrecht University of the Netherlands was used for summer vacation in the UK, the USA, France and Turkey.

A hefty amount collected under the head of fine from students was kept aside for discretionary use of the management as “daily expenditures,” the audit report disclosed. Besides, dozens of appointments were made during a period of hiring ban. One such beneficiary, Maj Gen (retd) Owais Mushtaq Qureshi, has now been appointed as Federal Public Service Commission member.

The report finds that Brig. (retd) Aziz Ahmad Khan, the Rector, is not the only official involved in irregularities, he has many partners posted on senior positions like director administration, director finance, director libraries, registrar and director academics.

As for drawing money under the garb of a supervisor of security guards, other beneficiaries include his director administration Muhammad Yasin, director finance Muhammad Ashraf, director libraries Muhammad Abbas, registrar Kamran Jahangir and director academics Saeed Akhtar Malik. The Rector, together with his partners, impersonated as security supervisor to collect Rs 620,549 in extra money.

Defending itself, the NUML administration told the auditors that high-level security was organised for the protection of a sizeable number of foreign military students in the university. “This was the time when the security situation in Islamabad was beyond anyone’s control. It was, therefore, decided that high-level security be organised. This included security provided by the agencies and overseen by senior officers of the university. It would be appreciated that the whole night duty would definitely require compensation. Hence, the amount under observation was paid. However, as soon as these sensitive students had completed stay at the campus, the payment was stopped forthwith,” the NUML said.

The audit report, however, turned down the plea, saying: “Security didn’t fall under the responsibility of the officers mentioned” and directed the beneficiaries to return the money. The Rector’s daughter, Ayesha, and her husband, Waqas Hassan, are named as the two, out of three beneficiaries, who were granted M Phil leading to PhD scholarships for study in Sussex University, UK. The criteria for granting such awards were not adhered to, the audit report objected, noting that there was no provision of awarding scholarship for higher education in the NUML Ordinance 2000.

The university administration responding to this objection said the criteria for selection was transparent, the candidates had fulfilled all the conditions for winning the scholarship and that the Rector was not part of the selection committee.

The Rector’s administrative post notwithstanding, he received 75 per cent tax rebate posing as researcher as the facility is available to those involved in research work. Director planning & coordination and registrar also abused this facility, the audit objected.

The NUML’s reply to this charge was that PhD degree holders from foreign university, who also work as teacher and researcher, qualify for the rebate. This justification was also rejected by the auditors who observed that the facility was available only to full-time teachers.

As regards the use of Rs 15.4 million allocated for setting up linkages and exchange of visits with the Utrecht University, the project was intended to promote research and development at the postgraduate level. A department called “Government and Organisational Science” was to be established with similar system in currency at the Utrecht University. The staff was to be trained by the Utrecht University with its staff biannual visit to Pakistan be arranged. It was not done; instead the NUML management started using it for foreign visits.

“The activities of the project mainly depicts the picture that the programme was made to have foreign visits to UK, USA, France, Netherlands, Turkey during vacations of the university,” noted the audit report.

The NUML administration replying to this objection said that the PC-1 provides that joint faculty visits will be undertaken by the Pakistani side in May and June every year because in June and early part of July, Utrecht’s faculty and administrators are free from their routine assignments and can spare more time for research. However, the management didn’t reply as to how the visits to other countries were undertaken using these funds

Implementation of SC’s ruling on NRO sought
The News 6 January, 2010

ISLAMABAD: Supreme Court Bar Association (SCBA) President Qazi Muhammad Anwar here on Tuesday stressed that the PPP leadership needed a change in its attitude, as hardlining attitudes could lead to confrontation. Addressing a press conference at the National Press Club, he said after the apex court’s ruling on the NRO, its beneficiaries should appear before courts and contest their innocence. So far the implementation posture over the NRO was vague, he remarked. Qazi said under Articles 189 and 190 of the Constitution, it was imperative that the judicial verdicts should be implemented in letter and spirit.

Rabbani committee upholds Clause 62-f Asma Jahangir calls parliamentarians ‘idiots’
The News 6 January, 2010

ISLAMABAD: The Raza Rabbani-led committee currently working on a constitutional package has rejected the proposal to remove Clause 62-f, which was inducted into the Constitution during the Ziaul Haq regime, a top leader of the committee told The News.

The committee, working to remove the 17th Amendment in the light of the Charter of Democracy (CoD), has unanimously rejected the proposals to change or remove some of the Islamic clauses even if they were inserted by military dictators. “The proposal to removing Clause 62-f was rejected outright,” the leader said.

Prominent lawyer Asma Jahangir, when asked to comment on the development, called the parliamentarians “idiots” if they have taken such a decision. “They are Uloo Kay Pathay,” she responded but then wondered how this correspondent would translate this word.

Asked why she did not protest or appeal to the parliamentarians to get this clause removed and instead continued to criticise the Supreme Court judges, Asma said that if she got the question on her e-mail, she would reply in detail on the issue. The News will forward the question to her e-mail address and will print her views as and when received.

A politician well abreast with the proceedings of the committee said that the committee as a whole feels that the basic structure of Constitution cannot be changed by any legislative assembly.

He explained that the basic structure of the Constitution includes fundamental rights, independence of the judiciary, parliamentary form of government, Islamic provisions and the federal system.

“Parliament does not have the powers to make any change in any of these clauses of the Constitution to change the basic structure.” In its December 16, 2009 judgment on the NRO, the Supreme Court, while declaring the legislation void ab initio, also referred to Clause 62-f of the Constitution as one of the reasons for quashing the NRO.

However, following the announcement of the judgment, a big lobby headed by the human rights activist Asma Janagir started a campaign against the judges, mainly on the ground that they had used Clause 62-f for striking down the NRO and had thus given this Islamic clause full sanction.

A considerable number of intellectuals in the media and the lawyers’ community oppose the clause but have advised Asma Jahangir that if she considered this clause as wrong, she should criticise parliament and put pressure to change it instead of attacking the judiciary.

However, at no point during her long campaign, Asma or any of her supporters have criticised parliament or appealed or demanded removal of this clause from the Constitution. Meanwhile, the Rabbani committee, by rejecting the proposal of removing Clause 62-f has once again backed the Islamic clauses of the Constitution. This crucial clause of the Constitution talks of the honesty of candidates and in part reads: “He is sagacious, righteous and non-profligate and honest and ameen.”

The major objection of Asma Jahangir was on the word ‘Ameen’ as she repeatedly said during her interviews and discussions that there could be no parameter to judge ‘ameen’. However, on the other hand, the view of the supporters of this clause is that if there exists some corruption cases against a person and allegations are proved, then that person cannot qualify as ‘Ameen’ and thus would not be allowed to contest any elections.

This branch of intellectuals says that following the Islamic code of life is not determined under Clause 62-f and only a conviction in corruption or fraud case could become the basis for declaration of any person as ‘Ameen’.

Pre-arrest bail of Salman, Usman Farooqui confirmed
The News 6 January, 2010

The Sindh High Court (SHC) confirmed on Tuesday, interim bail for Salman Farooqui, the principal secretary to President Asif Ali Zardari, and former Pakistan Steel Mills (PSM) chairman Usman Farooqui. The two have been accused in corruption cases.

Salman Farooqui is facing charges before accountability court in Karachi regarding alleged irregularities in the textile quota as a federal secretary in the 1990s. His other bail applications pertained to cases of alleged irregularities in the import of gold; a reference in this regard is pending in the Rawalpindi accountability court; two other corruption matters before the Federal Investigation Agency have been adjourned by the court till January 25.

The interim bail of former Steel Mills chairman Usman Farooqui, who is accused of corruption and causing a huge loss of Rs157.630 million to the PSM in 1995 during the purchase of ferrous manganese contract, has been confirmed by the SHC.

The National Accountability Bureau (NAB) had filed a reference against Usman Farooqui, former PSM (material and store) director Captain (retd) Mohammad Haroon, and other PSM officials for awarding contracts for Ferrous manganese (high carbon) to private contractors at higher rates of Rs48,484 per metric tonne and causing a loss to the national exchequer. The case against Usman Farooqui had been withdrawn by virtue of the National Reconciliation Ordinance (NRO) in 2008; it was reopened by NAB, however, after the Supreme Court (SC) judgment against the NRO.

The petitioner’s counsel, Raza Hashmi, contended that all other co-defendants in the case had been acquitted by the Accountability Court (AC) due to lack of evidence and the petitioner was present in jail at the time the reference was filed against him but he was not produced before the trial court to defend charges against him.

Usman Farooqui was also convicted in five corruption references by the AC, but all convictions were set aside after the promulgation of the NRO; after the SC judgment against the NRO, however, NAB filed an application for the revival of his appeals in the SHC.

The SHC also granted interim pre-arrest bail to Siraj Shamsuddin in a case pertaining to illegal recruitments in the Pakistan International Airlines (PIA).

Shamsuddin, who was the additional secretary at the Prime Minister Secretariat, along with former prime minister Benazir Bhutto, AVM (Rtd) Umer Farooq, ex-MD of PIA, Director PIAC Ghulam Qadir Shah, and political secretary to PM Naheed Khan, was named as a defendant in a NAB reference for illegally recruiting 1,393 people in different cadres in the PIAC; posting people abroad; and promoting various officials by rebuffing the rules. Former prime minister, the late Benazir Bhutto, and others were acquitted by the AC in November 2005.

Nawaz against new NAB under any ministry
The News 6 January, 2010

ISLAMABAD: Pakistan Muslim League-Nawaz (PML-N) Quaid Nawaz Sharif has recommended to Prime Minister Yousuf Raza Gilani that the Accountability Commission (AC), to be set up under the proposed Holder of Public Office (Accountability) law, should be made totally autonomous and independent, free from any government control.

“Nawaz Sharif has opposed placing the new accountability organisation under the federal government, meaning the Law Ministry,” a PML-N leader, privy to his leader’s fresh recommendations made to the prime minister during their telephonic conversation three days back, told The News.

Nawaz Sharif had told Gilani that the PML-N had sent the Holder of Public Office (Accountability) Bill back to the government with certain recommendations. Immediately, after taking over, the present government put the National Accountability Bureau (NAB) under the control of the Law Ministry.

During negotiations, the government representatives refused to make the AC autonomous and independent like the Election Commission of Pakistan. The PML-N leader again stressed that a body, which has been assigned accountability, should not be under the government’s control or it would not be able to do fair and just accountability.

The source said that another recommendation given by Nawaz Sharif to the government was that a clause of the bill, which provides that there would be no prosecution of an accused after three years of expiry of his term in office or his ceasing to hold office, should be changed to 10 years.

Yet another proposal advanced by the PML-N Quaid is that a public hearing should be held for the confirmation of the AC chairman by the joint parliamentary committee, the source said and pointed out that the government had earlier resisted it. He said that Nawaz Sharif stressed that the wilful default of loan should be included in the schedule of offices of the new law.

The source emphasised that legal experts of the PML-N and the government should sit together to jointly redraft the proposed law. It has happened more than once in the recent past that the government agreed to certain PML-N proposals but those were found missing in the new draft, he said.

There are indications that a consensus would soon be reached between the two parties so that the bill could be taken up by the two houses of parliament after a week. The PML-N feels that the government is serious in pushing the legislation through parliament so as to show to all and sundry that it has an accountability law in place.

This law would replace the NAB Ordinance, promulgated by Pervez Musharraf. A clause has been added to the draft law which says that all the NAB references would also be covered by it after its enactment and all the NAB inquiries would be transferred to the AC.

The proposed law is under discussion for the past eight months. It has also been debated in the National Assembly’s Standing Committee on Law for a number of times. The PML-N awaits another meeting of the NA body so that the draft is finalised in the light of discussions between Nawaz Sharif and the prime minister.

FC constable arrested for smuggling weapons
Dawn 6January, 2010

ISLAMABAD, Jan 4: The city police have arrested an official of the Frontier Constabulary (FC) for alleged involvement in smuggling illegal weapons, police said on Monday. However, investigators are yet to confirm that for whom the weapons were being smuggled. On a tip-off, Sub-Divisional Police Officer (Saddar circle) Deputy Superintendent of Police Jamil Ahmad Hashmi had alerted the Tarnol police personnel that some carriers would try to transport weapons from NWFP to the Punjab. During checking at an entry point of the capital territory, the police team stopped a bus coming from NWFP and started searching the passengers. However, a man refused to be searched and introduced himself as a constable of the Frontier Constabulary. When asked to prove his identity, the man presented his FC identity card but kept denying search. On suspicion, the police got him out of the vehicle and found two 44bore rifles and three pistols along with rounds from his bag. The FC constable was taken to the Tarnol police station when he failed to produced the licenses for the weapons. A case was also registered against him. Police said the constable, a native of Kohat, was stationed at the FC Headquarters Peshawar and had been smuggling weapons for the last one year. He got weapons’ consignments from Bara and transported them to Multan or Faisalabad. He charged Rs3,000 for transporting an assault rifle and Rs1,500 for a pistol.

The police said efforts were being made to trace the receiver and sender of the consignments to establish their identity and reason behind smuggling of weapons.

Meanwhile, the city police also arrested five other outlaws and seized narcotics and liquor from them.

SC to hear E-11 contract case
Dawn 6 January, 2010

ISLAMABAD, Jan 4: The Supreme Court will hear on Tuesday a suo motu case regarding award of a contract to a private society for the development of 54 acres of land in E-11 sector of Islamabad. In the last hearing, the Capital Development Authority (CDA) was directed to submit all the relevant monetary details of the contract awarded to Multi Professionals company.

A three-member bench headed by Chief Justice Iftikhar Mohammad Chaudhry will hear the case regarding the Rs1,550 million project.—APP

islamabad, jan 4: the supreme court will hear on tuesday a suo motu case re- garding award of a contract to a private society for the development of 54 acres of land in e-11 sector of islamabad. in the last hearing, the capital development authority (cda) was direc- ted to submit all the rele- vant monetary details of the contract awarded to multi professionals compa- ny. a three-member bench headed by chief justice iftikhar mohammad chaudhry will hear the case regarding the rs1,550 million project.—app

Rs22 billion corruption case FIA told to proceed with probe against PSM chief, others
Dawn 6 January, 2010

KARACHI, Jan 4: A judicial magistrate has granted permission to the Federal Investigation Agency (FIA) to proceed further into the investigation against some officials of the Pakistan Steel Mill (PSM) in a corruption case. The FIA lodged an FIR on Dec 23 against the PSM Managing Director Rasool Bux Pholphoto, former chairman Mueen Aftab Sheikh, ex-director commercial Sameen Asghar and three directors and chief executive officer of the Abbas Steel Group.

It was alleged that the suspects misused their official powers with criminal intentions causing a huge financial loss to the Pakistan Steel.

The investigation officer of the case, Sub-Inspector Mohammad Mansoor, filed an application before Judicial Magistrate (Malir) Mohammad Ashfaque Mughal, stating that being a sub-inspector, it was a mandatory requirement for him to seek formal permission to proceed with the investigation of the case registered against the PSM officials and others as mentioned in Section 5-A of the Prevention of Corruption Act, 1947.

After hearing the IO and perusing the application as well as the FIR, the magistrate granted the permission as prayed.

According to the FIR, consequent upon an inquiry (95/09) of the FIR, it was established that a retired grade-22 officer, Mueen Aftab Sheikh, was appointed chairman of the Pakistan Steel Mill on a contract basis on April 26, 2008 and was dismissed on Aug 18, 2009. During his incumbency, the PSM had sustained an approximate loss of over Rs22 billion on account of a large number of acts of criminal omission and commission allegedly made by him in collusion with the co-accused.

It added that in Nov 2008, in comparison to the international market the prices of PSM product were reduced to 35 per cent, but theses prices were not increased when international market was at a higher side, subsequently in respect of one product a financial loss amounting to Rs3.655 billion was caused.

It further stated in the FIR that from Jan 2009 to Aug 2009, the price fixation committee met twice and decided to increase the price of finished goods in general and billets in particular as high premium (difference of prices) was prevailing in the market, but neither the prices were increased nor the minutes were prepared, thus the loss caused dur ing this period was Rs518.635 million.

Mueen Aftab Sheikh was remained associated with the Abbas Group as a consultant before assuming the charge as the PSM chairman and after assuming the charge, he fraudulently favoured the group, enabling it to gain million of rupees by creating a monopoly, according to the FIR. Besides, Sameen Asghar had awarded trader dealership to the group in violation of the sales rules of the organisation in Nov 2008, whereas the competent authority was the chairman, it added.

Thus the accused Mueen Aftab Sheikh, in collusion with Rasool Bux Pholphoto and Sameen Asghar, being public servants abused their official positions with common objective, criminal intention and fraudulently caused pecuniary wrongful losses to the PSM and corresponding wrongful gain to Malik Bashir, Khalid Khan and Sabeen Sakina, the directors/CEOs of four companies of the Abbas Steel Group, says the FIR.

A case (FIR 39/2009) was registered against the suspects under Sections 406, 409, 420, 468, 471, 109/34 the Pakistan Penal Code read with Section 5(5) of the Prevention of Corruption Act, 1947 at the FIA’s Crime Circle police station Karachi.

karachi, jan 4: a judicial magis- trate has granted permission to the federal investigation agency (fia) to proceed further into the investigation against some officials of the pakistan steel mill (psm) in a corruption case. the fia lodged an fir on dec 23 against the psm managing director rasool bux pholphoto, former chairman mueen aftab sheikh, ex-director com- mercial sameen asghar and three direc- tors and chief executive officer of the abbas steel group. it was alleged that the suspects mis- used their official powers with criminal intentions causing a huge financial loss to the pakistan steel. the investigation officer of the case, sub-inspector mohammad mansoor, filed an application before judicial magistrate (malir) mohammad ashfaque mughal, stating that being a sub-inspector, it was a mandatory re- quirement for him to seek formal per- mission to proceed with the investiga- tion of the case registered against the psm officials and others as mentioned in section 5-a of the prevention of corruption act, 1947. after hearing the io and perusing the application as well as the fir, the magistrate granted the permission as prayed. according to the fir, consequent upon an inquiry (95/09) of the fir, it was established that a retired grade-22 officer, mueen aftab sheikh, was ap- pointed chairman of the pakistan steel mill on a contract basis on april 26, 2008 and was dismissed on aug 18, 2009. during his incumbency, the psm had sustained an approximate loss of over rs22 billion on account of a large num- ber of acts of criminal omission and commission allegedly made by him in collusion with the co-accused. it added that in nov 2008, in compar- ison to the international market the pri- ces of psm product were reduced to 35 per cent, but theses prices were not in- creased when international market was at a higher side, subsequently in re- spect of one product a financial loss amounting to rs3.655 billion was caused. it further stated in the fir that from jan 2009 to aug 2009, the price fixation committee met twice and decided to in- crease the price of finished goods in general and billets in particular as high premium (difference of prices) was pre- vailing in the market, but neither the prices were increased nor the minutes were prepared, thus the loss caused dur- ing this period was rs518.635 million. mueen aftab sheikh was remained associated with the abbas group as a consultant before assuming the charge as the psm chairman and after assum- ing the charge, he fraudulently favoured the group, enabling it to gain million of rupees by creating a monopoly, accord- ing to the fir. besides, sameen asghar had awarded trader dealership to the group in violation of the sales rules of the organisation in nov 2008, whereas the competent authority was the chair- man, it added. thus the accused mueen aftab sheikh, in collusion with rasool bux pholphoto and sameen asghar, being public servants abused their official po- sitions with common objective, criminal intention and fraudulently caused pecu- niary wrongful losses to the psm and corresponding wrongful gain to malik bashir, khalid khan and sabeen sakina, the directors/ceos of four companies of the abbas steel group, says the fir. a case (fir 39/2009) was registered against the suspects under sections 406, 409, 420, 468, 471, 109/34 the pakistan penal code read with section 5(5) of the prevention of corruption act, 1947 at the fia’s crime circle police station karachi.

Hearing on tractors and polo ground references put off
Dawn 6 January, 2010

RAWALPINDI, Jan 4: An accountability court judge observed on Monday that the Supreme Court in its verdict on petitions against the National Reconciliation Ordinance had directed trial courts to restart cases abolished under the NRO. It was for trial court, and not the National Accountability Bureau, will decide whether or not the cases could be reopened, the judge added. Accountability Court-I Judge Tariq Abbasi made the observation during the hearing of an application moved by the NAB seeking not to reopen cases involving President Asif Ali Zardari because he enjoyed immunity under the Constitution.

The NAB’s additional prosecutor general, Abdul Basir Qureshi, argued that since the case against the president could not be reopened under the criminal procedure code of Pakistan if the main accused was not available, courts could not proceed against the co-accused in the same case.

At this point, the judge asked what procedure the courts should apply if an accused was declared mentally retarded. The judge said the case against such an accused was withheld till his recovery, but the proceedings against other accused were not halted.

Similarly, the immunity granted to an accused was for the time being and how could cases against other accused be withheld, the judge wondered.

The hearing was adjourned for Jan 11 at the request of the NAB prosecutor, who sought more time to clarify this point.

The NAB moved the application for withdrawal of its early petition seeking reopening of all corruption references involving President Zardari.

The court is hearing references about scams in the purchase of Ursus tractors and the construction of a polo ground in the prime minister’s house when Benazir Bhutto was premier.

President Zardari is the main accused while Benazir Bhutto, Begum Nusrat Bhutto, former agriculture minister Nawab Yousaf Talpur, former ADBP chairman Badruddin Zahidi and former CDA chairman Shafi Shehwani were coaccused in the references.

In the Ursus reference, the accused were stated to have received commissions in the tractor deal negotiated during the 1990s. The accused indulged in corruption by purchasing 5,900 Russian and Polish-made Ursus tractors under the Awami Tractor Scheme, the charge-sheet said.

Each tractor cost Rs150,000 and the deal was in violation of rules and regulations of the ADBP. The deal caused a loss of Rs268.30 million to the ADBP and Rs1.671 billion to the State Bank on account of exemption from customs duty and sales tax. Former adviser to the Punjab chief minister Saeed Mehdi, who is also a coaccused in the polo ground reference, appeared before the accountability court.

Accountability Court-III Judge Najmul Hassan Najam also adjourned a similar application moved by the NAB in the Cotecna corruption reference till Jan 11.

In the reference, Benazir Bhutto and her husband Asif Zardari were accused of taking as commission six per cent of the total revenue of preshipment for awarding a contract to Cotecna for supervising Pakistan’s customs services.

They received $11.8 million in kickbacks for the $131 million contract.

In the reference of Islamabad New City Project, Accountability Court-II Judge Wamiq Javed asked the NAB prosecutor to confirm whether acquittal granted to Aftab Sherpao, former interior minister, and Haji Nawaz Khokhar, former deputy speaker of the National Assembly, was under relevant laws or under the NRO.

They were accused of collecting Rs209 million from the general public and the State Life Insurance Corporation on the pretext of developing a housing scheme in Zone-V, Islamabad. The amount was then misappropriated, according to the charge-sheet.

rawalpindi, jan 4: an accountability court judge ob- served on monday that the supreme court in its verdict on petitions against the national reconciliation ordinance had directed trial courts to restart cases abolish- ed under the nro. it was for trial court, and not the national accountability bureau, will decide whether or not the cases could be reop- ened, the judge added. accountability court-i judge tariq abbasi made the observation during the hear- ing of an application moved by the nab seeking not to re- open cases involving president asif ali zardari be- cause he enjoyed immunity under the constitution. the nab’s additional prose- cutor general, abdul basir qureshi, argued that since the case against the president could not be reopened under the criminal procedure code of pakistan if the main ac- cused was not available, courts could not proceed against the co-accused in the same case. at this point, the judge asked what procedure the courts should apply if an ac- cused was declared mentally retarded. the judge said the case against such an accused was withheld till his recovery, but the proceedings against other accused were not hal- ted. similarly, the immunity granted to an accused was for the time being and how could cases against other accused be withheld, the judge won- dered. the hearing was adjourned for jan 11 at the request of the nab prosecutor, who sought more time to clarify this point. the nab moved the applica- tion for withdrawal of its early petition seeking reopening of all corruption references in- volving president zardari. the court is hearing refer- ences about scams in the pur- chase of ursus tractors and the construction of a polo ground in the prime minis- ter’s house when benazir bhutto was premier. president zardari is the main accused while benazir bhutto, begum nusrat bhutto, former agriculture minister nawab yousaf talpur, former adbp chairman badruddin zahidi and former cda chair- man shafi shehwani were co- accused in the references. in the ursus reference, the accused were stated to have received commissions in the tractor deal negotiated dur- ing the 1990s. the accused in- dulged in corruption by pur- chasing 5,900 russian and polish-made ursus tractors under the awami tractor scheme, the charge-sheet said. each tractor cost rs150,000 and the deal was in violation of rules and regulations of the adbp. the deal caused a loss of rs268.30 million to the adbp and rs1.671 billion to the state bank on account of exemption from customs duty and sales tax. former adviser to the punjab chief minister saeed mehdi, who is also a co- accused in the polo ground reference, appeared before the accountability court. accountability court-iii judge najmul hassan najam also adjourned a similar ap- plication moved by the nab in the cotecna corruption ref- erence till jan 11. in the reference, benazir bhutto and her husband asif zardari were accused of tak- ing as commission six per cent of the total revenue of pre- shipment for awarding a con- tract to cotecna for supervis- ing pakistan’s customs serv- ices. they received $11.8 million in kickbacks for the $131 mil- lion contract. in the reference of islamabad new city project, accountability court-ii judge wamiq javed asked the nab prosecutor to confirm wheth- er acquittal granted to aftab sherpao, former interior min- ister, and haji nawaz khokhar, former deputy speaker of the national assembly, was under relevant laws or under the nro. they were accused of col- lecting rs209 million from the general public and the state life insurance corporation on the pretext of developing a housing scheme in zone-v, islamabad. the amount was then misappro- priated, according to the charge-sheet.

CJ orders NAB probe into PCB
Dawn 6 January, 2010

ISLAMABAD, Jan 4: Chief Justice Iftikhar Mohammad Chaudhry has ordered that allegations of embezzlement of Rs7 billion by three former chiefs of the Pakistan Cricket Board (PCB) be referred to the National Accountability Bureau (NAB) for a comprehensive inquiry. The issue was highlighted by Razaullah Khan of Karachi in an application requesting suo motu notice of the alleged misappropriation.

The applicant drew the attention of the chief justice to the fact that no action was taken by NAB although Prime Minister Yousuf Raza Gilani had issued a directive for an inquiry into the allegations.In a special audit conducted at the request of the sports ministry, Lt Gen (retd) Tauqir Zia who headed the PCB from Dec 14, 1999, to December 2003, Sheheryar M. Khan from Dec 15, 2003, to October 2006, and Dr Nasim Ashraf from Oct 7, 2006, to August 2008, were found involved in irregular expenditures of millions of rupees.

“Case be forwarded to the NAB chairman for disposal,” the chief justice ordered on Monday while taking suo motu notice of the applicant’s complaint.

The report prepared by the Auditor General of Pakistan (AGP) for the period from July 2003 to June 30, 2008, highlighted purchase of luxury cars, award of contracts without following prescribed rules, recruitment without advertising posts and mismanagement of PCB’s assets as a common practice during the stints of the three former chairmen.

The audit had objected to unavailability of essential documents and violation of rules by the board in carrying out directives of the Executive Committee of the National Economic Council (Ecnec) in implementing different projects.

PCB’s annual expenditures swelled from Rs571 million in 2004 to Rs737 million in 2005, Rs832 million in 2006, Rs1.024 billion in 2007 and Rs1.8 billion in 2008 when Dr Nasim Ashraf left the job soon after former president Gen (retd) Pervez Musharraf had resigned on Aug 18.

The PCB had a surplus budget of Rs1.051 billion in 2004 which dropped to a deficit of Rs130 million in 2008.

The chairmen exercised unlimited financial and administrative powers in violation of Article 35(2) of its constitution of 1995 which required its council (ad hoc committee) to specify financial powers of the chairman, the report said.

It said the PCB had entered into an agreement worth $42.6 million with a private television channel for the coverage of the game from 2003 to 2008 and despite repeated reminders no bidding documents were furnished.

The audit noticed wasteful expenditures on upkeep of 33 sports grounds where the board had no direct control or oversight. The board paid Rs7.14 million to two consultants for development projects which were later abandoned. Kit bags of Rs4 million were procured without floating tenders.

The finance committee of the PCB decided in 2005 that $1.1 million in its foreign currency accounts would be invested in local banks for better profits, but the decision was not implemented and the board suffered a loss of Rs66.89 million.

islamabad, jan 4: chief justice iftikhar mohammad chaudhry has ordered that al- legations of embezzlement of rs7 billion by three former chiefs of the pakistan cricket board (pcb) be referred to the national accountability bureau (nab) for a compre- hensive inquiry. the issue was highlighted by razaullah khan of karachi in an application requesting suo motu notice of the alleged misappropriation. the applicant drew the at- tention of the chief justice to the fact that no action was taken by nab although prime minister yousuf raza gilani had issued a directive for an inquiry into the allegations.in a special audit conducted at the request of the sports min- istry, lt gen (retd) tauqir zia who headed the pcb from dec 14, 1999, to december 2003, sheheryar m. khan from dec 15, 2003, to october 2006, and dr nasim ashraf from oct 7, 2006, to august 2008, were found involved in irregular expenditures of mil- lions of rupees. “case be forwarded to the nab chairman for disposal,” the chief justice ordered on monday while taking suo mo- tu notice of the applicant’s complaint. the report prepared by the auditor general of pakistan (agp) for the period from july 2003 to june 30, 2008, highlighted purchase of luxu- ry cars, award of contracts without following prescribed rules, recruitment without ad- vertising posts and misman- agement of pcb’s assets as a common practice during the stints of the three former chairmen. the audit had objected to unavailability of essential documents and violation of rules by the board in carrying out directives of the executive committee of the national economic council (ecnec) in implementing dif- ferent projects. pcb’s annual expenditures swelled from rs571 million in 2004 to rs737 million in 2005, rs832 million in 2006, rs1.024 billion in 2007 and rs1.8 billion in 2008 when dr nasim ashraf left the job soon after former president gen (retd) pervez musharraf had resigned on aug 18. the pcb had a surplus budget of rs1.051 billion in 2004 which dropped to a defi- cit of rs130 million in 2008. the chairmen exercised un- limited financial and adminis- trative powers in violation of article 35(2) of its constitu- tion of 1995 which required its council (ad hoc committee) to specify financial powers of the chairman, the report said. it said the pcb had entered into an agreement worth $42.6 million with a private television channel for the cov- erage of the game from 2003 to 2008 and despite repeated reminders no bidding docu- ments were furnished. the audit noticed wasteful expenditures on upkeep of 33 sports grounds where the board had no direct control or oversight. the board paid rs7.14 million to two consul- tants for development proj- ects which were later aban- doned. kit bags of rs4 million were procured without float- ing tenders. the finance committee of the pcb decided in 2005 that $1.1 million in its foreign cur- rency accounts would be in- vested in local banks for bet- ter profits, but the decision was not implemented and the board suffered a loss of rs66.89 million.

OECD anti-corruption work honoured by international awards
OECD 4 January, 2010

Key participants involved in OECD's work in the global fight against corruption have been honoured by two prestigious bodies, Transparency International in its 2007 Integrity Awards and African investor magazine in its annual African Investor Awards.

Transparency International, the leading international NGO campaigning against corruption, chose Mark Pieth, the chair of OECD's Working Group on Bribery, as one of two recipients of its annual Integrity Awards. Mark, who has led OECD's anti-corruption work since its early stages, teaches criminal law and criminology at the University of Basel in his native Switzerland.

Separately, OECD's Anti-Corruption Division was "Highly Commended" in the 2007 African Investor Awards for its work with South Africa in the global fight against bribery. South Africa became the first African country to sign the OECD Anti-Bribery Convention earlier this year, joining the OECD Working Group on Bribery as its 37th member.

Congratulating both Prof. Pieth and members of the Anti-Corruption Division, OECD Secretary-General Angel Gurría said these awards were a clear signal of support for the international fight against corruption. "Coinciding with the 10th anniversary of the OECD Convention," he said, "these awards are important recognition of the value of our work in this area."

Until the OECD Convention was adopted 10 years ago, Mr. Gurría noted, bribery of foreign public officials was widely accepted as a normal way of doing business in many countries in the world. In recent years, by contrast, there has been growing recognition that corruption undermines democratic institutions and damages the investment climate in developing countries.

In its citation honouring Prof. Pieth, Transparency International said that he "has provided outstanding leadership in fighting corruption on an international scale … not only as a co-founder of the Basel Institute on Governance but as chair of the OECD Working Group on Bribery in International Business Transactions and as a member of the Independent Inquiry Committee into the Iraq Oil-for-Food Programme of the United Nations."

The OECD Anti-Corruption Division serves the OECD Working Group on Bribery, providing analytical and logistical support for its work. In a speech accepting the Africa Investor Award, Anti-Corruption Division Head Patrick Moulette said that this award gave "an important signal that the African business community is willing to take measures to tackle foreign bribery-a crucial step for ensuring an attractive and stable African investment climate."

Commerce ministry scam: Minister's name used without his consent
Business Recorder 4 January, 2010

ISLAMABAD (January 04 2010): On the alleged recommendations of Commerce Minister Amin Fahim, import of 10 million tons of used lubrication oil was allowed, while the item is banned, according to the Trade Policy, and is extremely dangerous for vehicle engines, sources told Business Recorder.

However, after intensive investigation, this scribe reached the conclusion that the Commerce Minister was not involved in this scam, and his name had been used without his consent, or knowledge. This scam was unearthed a couple of months ago when an authorisation letter was issued with the approval of an Additional Secretary, who was the officer in charge, in the absence of former Commerce Secretary Suleman Ghani.

"Neither the former Secretary nor the incumbent Secretary Zafar Mahmood was aware of this scam, as this happened before the latter joined the Commerce Ministry," said one official. Sources said that an authorised Director to the Commerce Minister, Farhan Junejo, forwarded a letter to the concerned section of the Ministry, which said: "Commerce Minister is pleased to direct that authorisation letter may be issued for import of 10 million MT of used lubrication oil".

Junejo also handles the affairs of Trading Corporation of Pakistan (TCP), Trade Development Authority of Pakistan (TDAP), and profit earning insurance companies.

Earlier, two cases, where blatant 'influence' is alleged to have been employed by the Director, had been brought to the notice of top officials of the Commerce Ministry.

First was about use of abusive language against an official from TDAP, who had queried about his demand of Rs 0.5 million to reportedly purchase gifts for the Commerce Minister during a foreign tour. When the TDAP officer refused to obey the Director's verbal 'orders,' he threatened to hand him over to the police. "Police were called, but the police officer refused to take action by asserting that it was not a police matter," the insider added.

Second: the Director insisted on special permission to Aamir Brothers, Peshawar, to export the remaining quantity of urea/fertiliser ie 9,420 metric tonnes, to Afghanistan. This request was also turned down. According to sources, the Commerce Ministry responded in the following way: (i) The applicant registered a contract for export of 10,000 metric tonnes of urea/fertiliser with the Export Promotion Bureau (now TDAP) on May 13, 2002 as per policy in vogue at that time; (ii) as per the contract, applicant Aamir Brothers, was able to export only 580 metric tonnes of urea/fertiliser, before the policy was amended and export of urea was banned; (iii) applicant went into appeal in the Peshawar High Court to allow the remaining quantity of urea, but later on the petition was withdrawn on May 13, 2009; (iv) In 2004, the government changed the condition of export policy and approval of the ECC on case by case basis was made mandatory. The same policy is continuing to-date; and (v) case was earlier examined on a couple of occasions and was regretted on the following three grounds: (a) As per terms of contract registration, the validity period of the contract registration was 21 days, ie shipment must take place within 21 days. In the instant case, the applicant got registered its contract with the EPB for export of 10,000 metric tonnes urea on May 3, 2002, which was valid up to June 3, 2002, hence the case is time barred; (b) Export of urea is not allowed except with the prior approval of the ECC of the Cabinet on case by case basis. The decision was taken to maintain supply of urea in the country and to avoid transfer of subsidy to foreign farmers; and (c) Another official told this scribe that most of the officers of the Ministry are being pressurised for illegal demands by the Minister's Director, who still has no posting order despite occupying the office for the last four to five months.

Commerce Secretary also confirmed to Business Recorder that he had directed Junejo not to sign any official papers until he is notified of his posting as Director. However, these instructions are routinely being violated, according to informed sources.

Report on Hajj arrangements to be submitted soon
Financial Post 4 January, 2010

ISLAMABAD (APP): A five-member committee formed by the federal government to get feedback on arrangements made for Pakistani pilgrims in Saudi Arabia would shortly submit its report to the Prime Minister. "The report, based on findings and recommendations of the committee, would soon be presented to the Prime Minister requesting for their onward incorporation in new Hajj policy," Parliamentary Secretary for Religious Affairs Mehboobullah Jan told this news agency. The committee headed by Mehboobullah Jan visited various accommodations in Makkah and met with Pakistani pilgrims as well as those of other nationalities. He said the committee members obtained feedback from Hujjaj in Mina and Madina about the facilities provided to them by Pakistan's Hajj Mission, adding that "majority of pilgrims were dissatisfied with performance of the staff deputed to facilitate them." "Comparison were also drawn between the facilities provided to the delegation members and those to ordinary pilgrims paying similar rent to the Hajj Mission. The delegation found flaws in acquisition process of accommodation," he said. Mehboobullah underlined the need of appointing a high-level commission to probe as why the seasonal staff failed to fulfill its responsibilities. "Besides, the commission should fix the responsibility for poor standard of accommodation for Hujjaj in Makkah," he added. He said the seasonal staff remained unable to deliver and Pakistani Hujjaj faced numerous problems during the Hajj days. He also recommended that in future all the appointments of seasonal staff be made purely on merit, while literacy in computer be also given the priority. He said that it had also been recommended that the number of seasonal staff might be reduced and other kind of facilities be increased for Hujjaj.

Malik appears in court
Dawn 4 January, 2010

RAWALPINDI, Jan 2: Federal Minister for Interior Rehman Malik appeared before an accountability court here on Saturday and filed an application, seeking exemption from personal appearance.

Mr Malik appeared before Accountability Court-I Judge Tariq Abbasi along with lawyer Amjad Iqbal Qureshi and submitted bail bonds with bail orders from the Lahore High Court.

The court fixed Jan 12 as the date for hearing Mr Malik’s application and issued notices to the National Accountability Bureau whether or not they would contest the application.

In his application, Mr Malik said that being a minister he had different duties to perform. He said that he had been regularly receiving threats because of the government’s policy against terrorists.

The minister, who is facing two corruption references, was directed by the court during the last hearing to appear in person and produce bail bonds after a special court had granted him bail.

Talking to reporters after the hearing, the interior minister said that Pakistan People’s Party respected the judiciary and that’s why he had come to the court without official protocol.

Describing the cases against him as baseless, Mr Malik said he was not afraid of facing these charges in a court of law. He said he believed that he would get justice.

rawalpindi, jan 2: federal minister for interior rehman malik appeared be- fore an accountability court here on saturday and filed an application, seeking exemp- tion from personal appear- ance. mr malik appeared before accountability court-i judge tariq abbasi along with law- yer amjad iqbal qureshi and submitted bail bonds with bail orders from the lahore high court. the court fixed jan 12 as the date for hearing mr malik’s application and issued notices to the national accountability bureau wheth- er or not they would contest the application. in his application, mr malik said that being a minister he had different duties to per- form. he said that he had been regularly receiving threats be- cause of the government’s pol- icy against terrorists. the minister, who is facing two corruption references, was directed by the court during the last hearing to appear in person and produce bail bonds after a special court had gran- ted him bail. talking to reporters after the hearing, the interior minis- ter said that pakistan people’s party respected the judiciary and that’s why he had come to the court without official pro- tocol. describing the cases against him as baseless, mr malik said he was not afraid of facing these charges in a court of law. he said he believed that he would get justice.

50 years of Islamabad: failures overshadow achievements
Dawn 4 January, 2010

The city managers are celebrating the Golden Jubilee of Islamabad claiming that the federal capital is one of the best cities in the country in terms of civic facilities. However, those who know about the capital and its master plan are quite disappointed and have different views about what has been done and what still is required to be done.

Ironically, even after 50 years of its establishment half of Islamabad is yet to be developed as more than half of its residential sectors in the urban area could not be developed due to certain reasons.

People are still facing acute water scarcity in the city which aggravates in summer and the sewerage system has also become obsolete. The rate of pollution has increased manifolds mainly due to reckless cutting of trees marring the green image of the city. On the other hand, a number of basic civic amenities are not available to the masses.

According to old CDA officials, who had contributed their role in building the capital and now are living retired life, the development of the city continued till the ‘80s after which there was a long pause for almost two decades till Kamran Lashari assumed the charge of chairman CDA in 2003. But even in his tenure, which many people consider as the ‘golden era’ of CDA, no new sector was developed and many basic civic amenities were ignored at the cost of projects which won apparent promotion and applaud for Mr Lashari without addressing basic problems of the citizens like provision of adequate water, better sewerage system, cleanliness and the much-required transport service.

SECTORAL DEVELOPMENT: The last residential sector devel oped in Islamabad was F-11 that was opened 23 years ago in 1987 and since then no residential sector has been given to the people increasing housing backlog to over 350,000 units. Some of the sectors were opened by the CDA and the ministry of housing but they are yet to be developed and housing has not been started. On the other hand, the menace of encroachment has remained on the rise during the last 50 years and many sectors could not be de veloped due to non-acquisition of land and removal of illegal occupants from sectors like G-12 and F-12. This indicates the helplessness of CDA to acquire these sectors for housing. Now such sectors have become a stigma on the per formance of the CDA and a challenge to its writ.

The CDA had announced Sector D-12 in 1987 but it is yet to be developed completely and the authority is going to inaugurate the sector on January 4 despite the fact that over 250 kanals of its land is still under adverse possession. Many town planners believe that without going into joint venture with the private sector the CDA cannot acquire the stalled sectors.

Recently, the authority made the first ever joint venture with a cooperative housing society and managed to acquire 54 acres of land called northern strip, a commercial area in E11. But the joint venture was challenged in the Supreme Court which is conducting hearing on it. The au thority has certain limits to give compensation of land to the landholders but private firms can go beyond the limits and settle the issue on case-to-case basis. Many other sectors like F-13, F-14, F16, D-13, D14, D-15, C-14, C-15 and C-16 also require joint ventures for development to meet the accommodation requirements of the citizens.

WATER SHORTAGE: The CDA had planned to draw water from Tarbela Dam at a cost of over Rs47 billion to cater to the need of the twin cities of Rawalpindi and Islamabad. But the project was rejected by the government. The authority also planned to replace the rusty underground water distribution network to save wastage of water before it is received at the users’ end but the plan is yet to be implemented.

NO BUS SERVICE: Islamabad may be the first federal capital which lacks a bus service causing abundance of cars on roads and putting commuters at the mercy of private wagon and cab drivers.

NO CENIMA: The capital city has no cinema and its planners have not considered it an important issue to provide entertainment to the residents.

VIOLATION OF MASTER PLAN: Although the master plan is not a sacrosanct document as stated by the CDA chairman Imtiaz Inayat Elahi but till no amendment is made to it, anything against it is a violation of CDA rules. During the last 50 years, a number of gross violations have taken place but the CDA always behaved like a silent spectator. Establishment of Jinnah Convention Centre and McDonald’s in F-9 Park were some of the violations of the master plan. the city managers are celebrat- ing the golden jubilee of islamabad claiming that the feder- al capital is one of the best cities in the country in terms of civic fa- cilities. however, those who know about the capital and its master plan are quite disappointed and have different views about what has been done and what still is re- quired to be done. ironically, even after 50 years of its establishment half of islamabad is yet to be developed as more than half of its residential sectors in the urban area could not be developed due to certain reasons. people are still facing acute wa- ter scarcity in the city which aggra- vates in summer and the sewerage system has also become obsolete. the rate of pollution has increased manifolds mainly due to reckless cutting of trees marring the green image of the city. on the other hand, a number of basic civic amen- ities are not available to the masses. according to old cda officials, who had contributed their role in building the capital and now are living retired life, the develop- ment of the city continued till the ‘80s after which there was a long pause for almost two decades till kamran lashari assumed the charge of chairman cda in 2003. but even in his tenure, which many people consider as the ‘golden era’ of cda, no new sector was devel- oped and many basic civic ameni- ties were ignored at the cost of projects which won apparent pro- motion and applaud for mr lashari without addressing basic problems of the citizens like provi- sion of adequate water, better sew- erage system, cleanliness and the much-required transport service. sectoral development: the last residential sector devel- oped in islamabad was f-11 that was opened 23 years ago in 1987 and since then no residential sec- tor has been given to the people increasing housing backlog to over 350,000 units. some of the sectors were opened by the cda and the ministry of housing but they are yet to be developed and housing has not been started. on the other hand, the men- ace of encroachment has remained on the rise during the last 50 years and many sec- tors could not be de- veloped due to non-acquisition of land and removal of illegal occu- pants from sectors like g-12 and f-12. this indicates the helpless- ness of cda to acquire these sec- tors for housing. now such sectors have become a stigma on the per- formance of the cda and a chal- lenge to its writ. the cda had announced sector d-12 in 1987 but it is yet to be de- veloped completely and the author- ity is going to inaugurate the sector on january 4 despite the fact that over 250 kanals of its land is still under ad- verse possession. many town planners believe that without going into joint venture with the private sector the cda cannot acquire the stal- led sectors. recently, the authori- ty made the first ever joint venture with a cooperative housing society and managed to ac- quire 54 acres of land called north- ern strip, a commercial area in e- 11. but the joint venture was chal- lenged in the supreme court which is conducting hearing on it. the au- thority has certain limits to give compensation of land to the land- holders but private firms can go be- yond the limits and settle the issue on case-to-case basis. many other sectors like f-13, f-14, f16, d-13, d- 14, d-15, c-14, c-15 and c-16 also re- quire joint ventures for develop- ment to meet the accommodation requirements of the citizens. water shortage: the cda had planned to draw water from tarbela dam at a cost of over rs47 billion to cater to the need of the twin cities of rawalpindi and islamabad. but the project was re- jected by the government. the au- thority also planned to replace the rusty underground water distribu- tion network to save wastage of water before it is received at the users’ end but the plan is yet to be implemented. no bus service: islamabad may be the first federal capital which lacks a bus service causing abundance of cars on roads and putting commuters at the mercy of private wagon and cab drivers. no cenima: the capital city has no cinema and its planners have not considered it an impor- tant issue to provide entertain- ment to the residents. violation of master plan: although the master plan is not a sacrosanct document as stated by the cda chairman imtiaz inayat elahi but till no amendment is made to it, any- thing against it is a violation of cda rules. during the last 50 years, a number of gross viola- tions have taken place but the cda always behaved like a silent spectator. establishment of jinnah convention centre and mcdonald’s in f-9 park were some of the violations of the mas- ter plan.

Licence of drug manufacturing firm suspended
Dawn 4 January, 2010

ISLAMABAD, Jan 2: In line with the Supreme Court order of discouraging spurious drugs in the country, the Central Licensing Board (CLB) of the health ministry has suspended for one year the licence of a Lahore-based drug manufacturing firm for allegedly supplying 300 million sub-standard Paracetamol tablets to the government’s primary health programme.

A senior official told Dawn that the CLB, an executive board of experts, at a meeting on Wednesday also warned manufacturers that they would be held responsible if any “harm comes to any of the officers” carrying out investigations.

The board issued the warning after reports that representatives of some pharmaceutical firms had threatened investigators with dire consequences.

The programme was launched to ensure economical and sustainable delivery of primary healthcare to the poor. It envisaged reducing mortality of both mother and infant by 50 per cent and bringing the population growth rate down to below two per cent.

Thirty batches of the medicine supplied to the programme were found “grossly sub-standard” during a recent test by both the Central Drug Laboratory Karachi and the Drugs Control and Traditional Medicine Division of the National Institute of Health, Islamabad.

The Supreme Court took up a suo motu notice on reports that spurious medicines were being supplied to public hospitals.

Hundreds of samples were taken from different places and the medicine supplied by Shifa Laboratories (Pvt) Ltd was found to be substandard.

During the meeting, eight of the nine members of the Central Licensing Board executive board recommended can cellation of the licence of Shifa Laboratories.

They accused the firm of “deliberately violating” the Drugs Act 1976 and said that any delay in suspending the licence would be against the interest of the general public.

They also rejected the allegations levelled by the firm against officials responsible for detecting the substandard medicine.

Earlier, the Drug Registration Board had issued to the company a show-cause notice seeking explanation and later provided it an opportunity of hearing. Shifa Laboratories did not respond to both.

The board referred the matter to the CLB which also provided the firm an opportunity to present its point of view.

Mohammad Younus Malik, chief executive of Shifa Laboratories, appeared before the CLB, along with Advocate Sheikh Mohammad Nawaz and argued that the action proposed in the show-cause notice i.e. prosecution in the court, cancellation or suspension of the licence or both was “unlawful” under the Drugs Act, 1976, but he failed to convince which provisions of the law had been breached by the show-cause notice. islamabad, jan 2: in line with the supreme court order of discouraging spu- rious drugs in the country, the central licensing board (clb) of the health min- istry has suspended for one year the li- cence of a lahore-based drug manufactur- ing firm for allegedly supplying 300 mil- lion sub-standard paracetamol tablets to the government’s primary health pro- gramme. a senior official told dawn that the clb, an executive board of experts, at a meeting on wednesday also warned manufacturers that they would be held responsible if any “harm comes to any of the officers” carrying out investiga- tions. the board issued the warning after re- ports that representatives of some phar- maceutical firms had threatened investi- gators with dire consequences. the programme was launched to en- sure economical and sustainable delivery of primary healthcare to the poor. it en- visaged reducing mortality of both moth- er and infant by 50 per cent and bringing the population growth rate down to below two per cent. thirty batches of the medicine supplied to the programme were found “grossly sub-standard” during a recent test by both the central drug laboratory karachi and the drugs control and traditional medicine division of the national institute of health, islamabad. the supreme court took up a suo motu notice on reports that spurious medicines were being supplied to public hospitals. hundreds of samples were taken from different places and the medicine sup- plied by shifa laboratories (pvt) ltd was found to be substandard. during the meeting, eight of the nine members of the central licensing board executive board recommended can- cellation of the licence of shifa laboratories. they accused the firm of “deliberately violating” the drugs act 1976 and said that any delay in suspending the licence would be against the interest of the gener- al public. they also rejected the allegations level- led by the firm against officials responsi- ble for detecting the substandard medi- cine. earlier, the drug registration board had issued to the company a show-cause notice seeking explanation and later pro- vided it an opportunity of hearing. shifa laboratories did not respond to both. the board referred the matter to the clb which also provided the firm an op- portunity to present its point of view. mohammad younus malik, chief execu- tive of shifa laboratories, appeared be- fore the clb, along with advocate sheikh mohammad nawaz and argued that the action proposed in the show-cause notice i.e. prosecution in the court, cancellation or suspension of the licence or both was “unlawful” under the drugs act, 1976, but he failed to convince which provisions of the law had been breached by the show-cause notice.

Plush park to be inaugurated amidst serious questions
The News 4 January, 2010

The Shaheed Benazir Bhutto Park in Clifton, which is meant to be inaugurated today (Monday) has set new heights in terms of cost and material procurement, costing a whopping Rs877 million – dwarfing even the massive Bagh-ibn Qasim, which cost some Rs700 million.

However, many questions have been raised in the project and the man running the show. For one, sources told The News, the public park has been expanded and constructed almost exclusively using imported material, which could easily have been bought for cheaper rates from local manufacturers. As a result, not only has the cost burgeoned, but the massive amount of money spent on the project has also not benefited local producers.

The department executing the project, the Parks and Horticulture Department (P&HD) of the city government, has, it is alleged, used highly expensive imported material to develop, renovate and to expand the Benazir Bhutto Shaheed Park in place of a smaller park that had already existed there.

Sources also alleged that favoritism and nepotism is also rife in the project. The son of a former District Coordination Officer (DCO), Karachi, has been given the charge to supply the exorbitantly-priced canopies, which are being imported from China through his front men, sources said.

The number of canopies used in the park number from six to eight. The largest canopy installed at the park has been purchased by the department for a whopping Rs14 million, sources claimed. The canopies being flown in from China are also coming complete with pillars and benches. Aside from the canopies, even the wooden floor that is being installed at some points at the park is also being imported, the sources further alleged.

“There are some local companies which could manufacture canopies according to required designed and material if needed at a much cheaper rate in comparison with the imported ones,” sources alleged.

The man holding the reigns of this project is Executive Director, Directorate of Parks and Horticulture Department (P&HD), Liaquat Ali Khan, City District Government Karachi (CDGK), who, sources claim, has been enjoying free hand in such matters for a long time now. He has been the man of choice of higher authorities to develop a number of similar projects.

They claimed that the Executive Director Parks has even managed to escape intensive audit on more than one occasion.

Moreover, in this regard, the Sindh Public Procurement Regulation Authority (SPPRA), in a letter addressed to DCO Karachi Jawed Hanif Khan has also pointed out a violation of the Public Procurement Rules 2004 by the P&HD.

In this letter dated October 19, 2009, it is stated that Executive Director, P&HD, Liaquat Ali Khan continued non-compliance and showed total disregard of directives regarding supply of information relating to all procurement made by his office in the last three years.

“In this regard, the Transparency International Pakistan has also taken up the issue but still the officer has failed to provide the requisite details,” the letter further added.

According to the letter, the provisions of the Rule-47 of the Public Procurement Rules, 2004, require that an officer is bound to provide all information relating to procurement. The letter added that he is also required to announce results of bid evaluation in the form of a report giving justification for the acceptance or rejection of bids at least 10 days prior to the award of procurement contract and same has to be sent to the authority for posting on its website.

The letter further said that the Assistant Director, Local Fund Audit, CDGK vide letter Audit Requisition No.1 dated 29th September, 2009, has also categorically stressed to all the officers of the CDGK that the Sindh Public Procurement Rules are applicable to all procurements made by the CDGK and any contravention of the rules would be termed ‘Mis-procurement’.

Therefore, the executive director P&HD may be directed to provide relevant procurement details of the last here years latest by October 29th, 2009, to this authority, the letter said.

Executive Director P&HD, Liaquat Ali Khan, when contacted, rejected all the allegations raised in the story.

He said that the mentioned Public Procurement Rules don’t apply to the projects which are being materialized by his department (contrary to what the letter stated).

“We are working as per the Sindh Local Government Ordinance (SLGO) 2001 and AG Sindh verifies the facts before release of the funds for any of our projects,” he said.

He said that he has also conveyed his stand on this issue to the authority concerned. He said that he was fulfilling all the formalities and obeying all the laws and procedures in the materialisation of projects by his department.

He also categorically denied the involvement of any former DCO’s son in the supply of canopies from China. However, he confirmed that four to five different types of imported canopies are being installed at the park. But at the same time, he clarified, there is no canopy at the park worth Rs14 million.

Defending the importing of materials, he said that imported canopies are being used at the park as the required material is not available locally. He said these canopies have been made with sandstone.

He said the entire cost of the project is Rs877 million and the park spans over an area of 152 acres.

“I invite everybody whoever has reservations about the cost of the project to build a park with this mentioned amount but nobody would be able to do it,” he claimed.

Khan said that, previously, this park spanned over 30 acres of land which has been expanded over an area of 152 acres of land now.

He said as per directives of authorities concerned the park would be inaugurated on January 4 (today).

PM consults Nawaz on new accountability law
The News 4 January, 2010

ISLAMABAD: Prime Minister Yousuf Raza Gilani has assured Mian Nawaz Sharif that the PML-N’s proposals would be accommodated in the proposed accountability law that is likely to be presented in the National Assembly session beginning on January 11.

In a telephonic conservation with Nawaz Sharif on Sunday, the prime minister also reiterated his government commitment to implementing the Charter of Democracy, repealing the 17th Amendment and removing the bar on becoming third time prime minister.

According to informed sources, the focus of his telephonic conservation was the new accountability law. The two leaders also agreed that they would stop their party leaders and workers from hurling allegations on each other. Nawaz Sharif informed the prime minister that the draft of the proposed accountability bill, which was forwarded to him by the federal government as part of consultation on the subject, has been sent back to the government with necessary recommendations. The PML-N leader hoped that the new law would satisfy all shades of opinion.

The prime minister assured Nawaz Sharif that the government would make a comprehensive law acceptable to all, which would fulfil all requirements of accountability. He informed Nawaz Sharif that the constitutional reforms committee was working round the clock and had so far held 40 meetings. From Tuesday onward, the committee will hold meetings on a daily basis to finalise its recommendations.

The prime minister vowed to continue the politics of reconciliation and to take all political forces along on all issues of the national importance. In this connection, he referred to the Aghaz-e-Haqooq-e-Balochistan package and said it was in line with the long-standing demands of the people of the province. He hoped that it would go a long way in mitigating the grievances and removing the sense of deprivation of the people of Balochistan. Nawaz expressed his full support to the package and hoped that it would help address the grievances of the province.

Kaira for holding judges, generals accountable
The News 4 January, 2010

LAHORE: Minister for Information and Broadcasting Qamar Zaman Kaira on Sunday rejected ‘selective trial’ of the Pakistan People’s Party, and demanded accountability of the judiciary and generals as well, who aided dictatorships in the past.

Talking to the media persons at the Hafizabad Press Club, Kaira said the focus of the accountability process should not be confined only to the PPP, whose leaders had been politically victimised time and again. He said PPP founder Zulfikar Ali Bhutto was victimised and subjected to judicial murder, while party Co-chairman Asif Ali Zardari had also been kept in jail for long years to victimise him politically. He said Zardari spent 11 years in jails, but not a single case was proved against him and now, once again, baseless charges were being levelled against him.

On the other hand, the minister said, the PPP did not file any politically-motivated case against the opponents despite the fact that the party itself remained a target of this sort of victimisation.

Answering a question, Kaira said if the politicians could be taken to task, why the judges and generals couldn’t be, who had been conspiring against democratic set-ups in the past. He said if politicians could have been held accountable for their actions since 1970, the judiciary should also be asked for its acts from 2007 onwards.

Kaira said the judges, generals, politicians and all those who played dubious roles in the past should be held accountable for their deeds. He said even those who had remained part and parcel of subverting the Constitution by joining hands with dictators like Ziaul Haq and Musharraf were now raising questions about the delay in the scrapping of the 17th Amendment.

He said the PPP leadership had faced imprisonments and it never felt afraid of the accountability process. He said PML-N Quaid Nawaz Sharif had to make a deal to save his life from a dictator and his return to Pakistan was made possible only after Benazir Bhutto returned to the country after signing the National Reconciliation Ordinance.

He said it was the PPP, which gave the 1973 Constitution to Pakistan and it was again this party which was working to remove amendments to the Constitution made by the dictators. He alleged that baseless propaganda was continuing against the PPP, adding that dictators had ruined Pakistan but the PPP always played a major role in saving the country.

He said Rs 17 billion were being spent on the Benazir Income Support Programme and this amount would also be increased to curb poverty and to benefit the poor population of the country.

Kaira said conspiracies were being hatched against the PPP government but all these conspiracies would be foiled. Inaugurating the newly-constructed press club in Hafizabad, he said the PPP had offered great sacrifices for democracy, but baseless propaganda was being made against it.

“Our leader Benazir Bhutto gave her life for the restoration of democracy. Those who wanted Zulfikar Ali Bhutto to be hanged, now once again are hatching conspiracies against President Asif Ali Zardari.”

He urged the PPP workers to unite as they were the strength of the party. APP adds: Federal Minister Qamar Zaman Kaira said the Pakistan People’s Party had never felt afraid of accountability and it wanted to have a transparent accountability system for all those who had plundered the national exchequer.

“We have put the country on the right path,” and approved the National Finance Commission Award with consensus, he said. He said a poverty survey of the country was being conducted to help the poor by implementing Wasila-e-Haq and through other such initiatives.

He said the issue of loadshedding could not be redressed because of the campaign launched by the opponents of the rental power plants, as there was no other short-term solution of the issue with the government.

The minister said that providing political backing to the armed forces in the fight against terrorism and making the country a peaceful place were among the important achievements of the government.

'We are fighting to eradicate the crop which the thoughtless rulers and their supporters had sown in the past by spilling our blood and misusing the resources of the country.' He said many of such people did not have the courage to openly condemn the terrorists.

Qamar Zaman Kaira said that he had never before seen such a courageous President as Asif Ali Zardari, who bravely defended his institutions and the Army in front of the president of the United States during his visit there and thus convinced him to acknowledge the sacrifices the soldiers had rendered in the war against terror.

He said that President Asif Ali Zardari also established a forum of the Friends of Democratic Pakistan and for this he received support from the international community. On the other hand, the Musharraf regime could not get support even of the Muslim states when India began to make military preparations against Pakistan.

Kaira said that it was the vision of President Asif Ali Zardari who had assessed the world economic meltdown well in time and helped the government thwart the crisis that would have confronted the country.

He said that efforts of the government had brought down the inflation rate to 10 per cent, which would be further reduced within a month. He said that increase in wheat prices by the government had helped raise its output and made the country surplus in food, rather than forcing it to import wheat.

He said that arrangements were also made to purchase paddy but because of the existing structure the government was not able to attain 100 per cent results.He promised to get approval of grant for the Hafizabad Press Club from the prime minister and help set up a passport office in the city.

The minister said he would discuss with the Punjab government the proposal for constructing the Gujranwala- Hafizabad Road.He said the journalists of Hafizabad would be provided opportunity to attend media training courses, which the government had launched for journalists.

The submarine kickbacks Pandora’s box reopened
The News 2 January, 2010

he submarine kickbacks Pandora’s box reopened By Ansar Abbasi ISLAMABAD: The post-1996 probe into the Agosta submarine deal, which led to the removal of the then-Chief of Naval Staff (CNS) Admiral Mansurul Haq and a corruption reference against Benazir Bhutto and Asif Ali Zardari, was an alleged cover-up to save many key officials of the Pakistan Navy, besides turning a blind eye to a controversial $550 million deal of mine hunters signed in 1992 during Nawaz Sharif’s first tenure.

Documents available with The News show grey areas that remained untraced, while a key naval officer of that time told The News the cover-up in the submarine deal was meant to save the skin of many in the Pakistan Navy and was done by Senator Saifur Rehman, who was only interested in fixing Benazir Bhutto and Asif Ali Zardari.

The most interesting aspect of the whole affair was the statement of the then-director general Naval Intelligence (DGNI), who was instantly turned into an example for others when he was recalled from an overseas course, retired prematurely, court martial and harassed to keep his mouth shut.

The documents show the naval authorities charged DGNI Commodore Shahid Ashraf of getting Rs 1.5 million from a naval officer, who was alleged to have got illegal gratification and kickbacks from foreign suppliers of naval vessels, etc., but made an approver against the DGNI, who had given to the authorities a list of naval officers who had allegedly received kickbacks but were never touched and promoted as rear admirals instead.

According to a source, the DGNI knew too much and, therefore, he was silenced. The NAB sources also confirmed the existence of a Feb 17, 1995 letter issued by SOFMA (the French company that was involved in Agosta deal) that talked of making payment of $40,000 to each of four naval officers whose names were mentioned in the same letter. Instead of probing the four officers, each one of them was later elevated as Rear Admiral.

A statement of the DGNI submitted before the Board of Inquiry (BoI) was explosive but was ignored. When approached, Shahid Ashraf owned all that he had stated in the documents available with The News, and offered to present himself before a commission to spill the beans and uncover the faces, who, according to him, were alleged to have done wrong but were never touched.

According to Ashraf, the Agosta deal was never struck by Adm Mansurul Haq, who had actually received kickbacks after the award of the contract for its smooth implementation. Those who had received the kickbacks before the award of the contract, he said, were never formally questioned.

In his statement, he had told the BoI: “It needs no emphasis that lions share of kickbacks was paid before the award of the main contract. I had received information as the DGNI that Adm SM Khan, R Adm IH Naqvi, V Adm AU Khan, R Adm A Mujtaba, R Adm Jawed Iftikhar had received gratifications in connection with the award of contract for Agosta 90-B, for favouring the Agosta 90-B submarine acquisition by the Pakistan Navy.”

He also revealed: “Col Ejaz Ahmad was actively pursuing the interest of the contractor and obliging officers concerned from time to time. My sources had intercepted information that Mr DEVENSAY of DCN (French company) had issued instructions in the form of a letter to Col Ejaz stationed in Rawalpindi as agent of DCN to pay $40,000 each to following officers of the Pakistan Navy: a. Cdre Mushtaq Ahmed, b. Cdre Khushnud Ahmed, c. Cdre SV Naqvi, and d. Cdre Naveed Ahmed”. All of these officers were said to be members of the committee for evaluation of technical specification of onboard equipment.

He stated: “A copy of this letter was shown to me by R Adm Sarfraz Khan during investigation by Col Zafar in the presence of the Commanding Officer (Cdr Qazi), Cdre Shahid Nawaz (DGNI) and Cdr Shafiq Ahmed, Registrar Naval Court of Appeals. The copy of this letter was marked to Zafar Iqbal, stationed in Washington as agent of SOFMA, who was arrested by FIA. Mr DEVENSAY had directed him to release an amount of $160,000 out of special fund in favour of Col Ejaz for payment to these (four) officers.”

He also stated: “Cash pay-off to officers was discussed in the Command and Staff meeting held immediately on return of CNS (Naval Chief) Adm Mansurul Haq from France in early 1995. The CNC informed the members that Cdre Shahid Ashraf had called me (Mansurul Haq) in France and seriously upset me by reporting that foreign currency was to be doled out to some serving officers of the PN. However, the investigation remained inconclusive as the Chief of Naval Staff deemed it appropriate to abandon the investigation for reason known to him.”

Shahid told The News he had shared the same information with the then-acting Chief V Admiral AU Khan.

Shahid, in his statement dated Aug 23, 1999, also disclosed: “As far as I can recall, evaluation teams comprising R Adm IH Naqvi, R Adm Jawed Iftikhar and R Adm SA Mujtaba visited China, France, England and Sweden. This team recommended Swedish submarine as FIRST choice. Then another team comprising of R Adm AU Khan, R Adm SA Mujtaba, Capt Mushtaq Ahmed, Capt SV Naqvi and Capt Naveed Ahmed visited France, England and Sweden. Serious deliberation took place at Naval Headquarters to finalise the recommendations. Cdre Khushnud Ahmed (then DNWOP), Cdre Mushtaq Ahmed, Crde Naveed Ahmed (DSMM), Cdre SV Naqvi (then DSMO), Capt ZU Alvi (DNC) remained actively involved in the evaluation process with both the team visited abroad.”

He added: “It should be noted that R Adm Mujtaba was made member of both the teams that visited abroad. The depth of his involvement in the contract before and after its award can be gauged from the fact that he went out of his way in supporting the inclusion of Capt ZU Alvi in the first project team in France despite the fact that Capt Alvi did not qualify the criteria laid for the selection of the project mission team. He had also persuaded the then-CNS (Naval Chief) to override the observations made by the intelligence against Capt Alvi ...”

He revealed intelligence sources had also reported that Col Ejaz Ahmed, agent of SOFMA in Rawalpindi, had been in continuous liaison with the evaluation team and other officials in NHQ (Naval Headquarters) and MoD (Ministry of Defence). “I, as DGNI, issued certain instructions to impose restrictions on the agents of foreign firms getting involved in negotiations/agreement.” He noted the whole process to acquire submarines from France took place during the time of Admiral SM Khan, who remained Chief of the Naval Staff from November 1991 to Nov 1994.

He also placed it on record that after he had protested against his “wrongful” retirement to the defence minister, a round-the-clock surveillance was placed on him; he was arrested on the orders of Cdre Rashidullah and detained for several days for recording of the summary of evidence while all other officers were free. “Several coercive measures were taken against me to force me into pleading guilty,” he added.

According to Shahid, he was fixed on the basis of a statement of Capt Alvi, who became approver although there is no provision in the PN Ordinance or PN Rules for approver. Alvi, in his statement dated 17th of Oct, 1998, given under Section 337 of PPC before the additional deputy commissioner, Islamabad, had admitted to have received over Rs 4 million as illegal gratification and kickbacks from foreign suppliers and alleged to have paid some of the amount to Shahid and another officer Capt Liaquat Malik. Shahid said Alvi did not mention the name of many others whom he had paid heavy amounts.

“The BoI (Board of Inquiry) may like to deliberate as to why did he make a statement taking only two names of officers who have been hurriedly tried, forced into pleading guilty and awarded harsh sentences,” the former DG NI said in his statement.

Interestingly, the approver had admitted to have received kickbacks from foreign suppliers of naval craft, stores to Pakistan Navy and transfer of technology to the navy in return of favours shown to them by him in drawing up of contracts, negotiations, supervisions of constructions of sites and otherwise facilitating the contracts between the navy and the suppliers and manufacturers of such naval craft and stores and transfer of technology.

Shahid, according to the charge-sheet served on him, was accused of having obtained money from Capt Alvi, who in all charges was in contact with the foreign suppliers, etc. One of the charges levelled against Shahid also talked of Capt Alvi to have received gratifications in MCMV project meant for the purchase of $550m worth Minehunter special crafts.

According to the former DGNI, this project was finalised during Nawaz Sharif’s first tenure as prime minister but was never probed either by Senator Saifur Rehman, Pakistan Navy or by the NAB. Shahid said the cover-up in the submarine deal to save the skin of many in the Pakistan Navy was done by Senator Saifur Rehman, who was only interested in fixing Benazir Bhutto and Asif Ali Zardari.

Editor’s Note: Since it was not possible to contact all of these officers named or accused, The News would welcome their versions, if and when submitted for publication in these columns.

Shahbaz rejects proposal to impose fine on illegal plazas
The News 3 January, 2010

LAHORE: Punjab Chief Minister Shahbaz Sharif has said the people protesting over the demolition of illegal plazas should have raised their voice for the poor.

The CM was speaking at the inauguration ceremony of the Shalimar Interchange on Friday. The CM said that great hue and cry was being raised on demolition of illegal plazas but it would have been much better if those involved in propaganda against the operation against illegal plazas had raised their voices for poor people, widows and orphans deprived of food, education and other basic necessities.

The CM said that action was being taken against high-rise buildings constructed in violation of rules and bylaws. He said that owners of illegal plazas, in their lust for money, had constructed shops even on space provided to mosques. He said those supporting the owners of illegal plazas were doing so only because plaza owners were rich and had constructed such illegal plazas on the basis of their wealth.

He said that the staff of the Lahore Development Authority and the City District Government was equally involved in construction of illegal high-rise buildings and would be punished. He said that some people were of the view that fines should be imposed instead of demolishing illegal plazas but that would not be sufficient. He said the purpose of propaganda of these people was to give an impression as if the government and departments concerned were in cahoots but he would not be taken in by such tactics.

“Why were these elements silent when the Punjab government gave a relief package of billions of rupees during Ramzan and despite extreme heat, I and members of my team went to every nook and corner of the province to ensure its provision to the poor, widows and orphans?” he asked. He said action was being taken against the illegal plazas on the order of the SC but the interests of widows, orphans and the people of middle class, who had been duped into purchasing shops in these plazas, Shahbaz rejects proposal to impose fine on illegal plazas