NAB gets no response from GHQ on NLC scam

ISLAMABAD: In the mega corruption case pertaining to the NLC, NAB remains unmoved. Despite repeated reminders to the GHQ, the Bureau has not yet been provided with the official record of the swindle.

The NLC scam is included among 150 plus mega corruption cases, details of which were shared by NAB with the apex court recently.

Although the GHQ has completed its inquiry into the NLC scam a few months back, the required official record is not being provided to NAB for further inquiry into the matter. NAB wants the record to inquire as to who did what in the scam. “As a major portion of the inquiry was being conducted at the GHQ, NAB cannot finalise/ conduct inquiry proceedings in isolation without provision of record,” the NAB official record pertaining to the NLC case read.

Even available on NAB’s website, the Bureau offers the following comments in the case: “Despite repeated reminders to the NLC and the GHQ since January 2012, no reply/ record was received. Further no intimation regarding outcome of a Court of Inquiry against an army officer was shared with NAB. As a major portion of the inquiry was being conducted at the GHQ, NAB cannot finalise/ conduct inquiry proceedings in isolation without the provision of record.”

A few months back following an internal inquiry, the GHQ fired from service a two-star general (major general), who formerly headed the military-run National Logistics Cell (NLC), while a former three-star general (lieutenant general) was reprimanded for his role in the case.

A civilian was also found guilty after a five-year investigation by the army into allegations of financial irregularities, lack of transparency and violation of rules and regulations in an investment made by the NLC in the stock markets.

According to the NAB record, the NLC corruption involves Rs4 billion.

The NLC reportedly suffered huge losses between 2004 and 2008 because of getting loans from commercial banks at high interest rates and investing Rs4 billion of pensioners’ money in stock markets.

Additionally, it was alleged that kickbacks were received from companies through which the money was invested.

Initial inquiries by the Planning Commission on the orders of the Public Accounts Committee of the National Assembly had pointed to involvement of former quartermasters general retired Lt Gen Khalid Munir Khan and retired Lt Gen M. Afzal Muzaffar, former NLC director general Maj Gen (retd) Khalid Zaheer Akhtar and two civilians — Najibur Rehman and Saeedur Rehman. A quartermaster general, by virtue of the office, is the officer in charge of the NLC.

However, following the GHQ inquiry the military recently announced, “The inquiry has now been concluded and has established that two retired general officers and one civilian officer were indeed responsible for making incorrect decisions of investments in violation to NLC rules and regulations, thereby causing losses to the organisation during this period.”

It was said that the two generals have been punished under the Army Act. Khalid Zaheer was “dismissed from service” and Afzal Muzaffar penalised with “severe displeasure (recordable)”. However, Khalid Munir was exonerated. Saeedur Rehman was also found guilty.

It was said that Khalid Zaheer’s dismissal from service entails forfeiture of rank, decorations, medals, honours and awards, seizure of pension, recovery of personal gains and cancellation of service and allied benefits, including medical facilities.

Afzal Muzaffar was given a light sentence of reprimand after being held responsible for violating procedures. He wasn’t found guilty of getting personal gains.

The case came to light when the PAC took it up in 2009 and ordered the Planning Commission to investigate it.

The NLC administratively functions under the commission as an attached department. The findings of the commission’s inquiry were referred to the defence ministry in 2010 for action against the accused military officers.

The officers had by then retired, but were recalled into service for trial under the military law. The Planning Commission probe had highlighted financial irregularities, lack of transparency and failure to observe rules and regulations caused by reckless decisions of chain of command of NLC.

The investigation committee of the Planning Commission had finalised its report in January 2010. The findings were shared with the General Headquarters in September 2010. Following the receipt of the findings, the then army chief Gen Ashfaq Parvez Kayani decided to proceed against the accused under the Pakistan Army Act’s Section 94 instead of referring the matter to the National Accountability Bureau.

An Army Court of Inquiry was convened in November 2010, which reported preliminary findings to the COAS in February 2011. Subsequently, the then army chief ordered a formal investigation to allow a fair trial.

Summaries of evidence were recorded and submitted to the army chief in 2012.

The ISPR had said that the decision got delayed after the accused officers had furnished “additional documentary evidence” in their defence, which required more time for scrutiny and establishing their veracity.

Later the incumbent Army Chief Gen Raheel Sharif ordered a re-investigation for ensuring justice and transparency.

A committee of high-ranking officers, which re-investigated the case, evaluated the record of investments and interviewed all the witnesses before giving its findings.

Although the GHQ has done its job, NAB still requires the official record of the case to complete its inquiry. The scam also involves civilian officers for which the GHQ is required to cooperate with NAB.—Originally published in The News