KARACHI: Despite the request made by the National Accountability Bureau (NAB) for handing over the National Insurance Corporation Ltd (NICL) money scam report, Federal Investigation Agency (FIA) did not confer (NICL) money scam report to NAB and filed a single page letter in Sindh High Court (SHC) claiming, “nothing could be established against NICL and other accused persons, therefore, the department had closed this case”.
The report was submitted by an Inspector of FIA’s Corporate Crime Circle (CCC) Karachi after a week of the order passed by the judges of SHC on October 19, 2016 directing NAB to initiate and complete enquiry in Rs 2 billion investment scam against NICL and JS Investment group, which caused a loss of above Rs 255 million to the national exchequers.
After a week on Oct 27, 2016, an FIA inspector, Gulsher Mugheri, submitted a single page report in the same court that the proceedings and enquiry had been completed after thorough evidences examined and records, nothing could be established, therefore the competent authority has ordered to close enquiry vide No FIA/SDK/Enq-21/2013CCK/B-15474 dated December 24, 2014.
NAB authorities claim that despite several attempts, FIA has failed to provide case report. Meanwhile, Syed Mureed Ali Shah appeared in court and submitted the latest report by the FIA which claims that the investigation is still ongoing against NICL and JS investment group. The advocate claimed that the previous report submitted to the court was a fake.
The Supreme Court had ordered the NAB on January 22, 2014, to investigate all the proceedings and cases pertaining to the NICL investments scam pending before the FIA.
Following the investigations, JS Investment Ltd has filed a petition in SHC challenging FIA’s summon notice for investigation against them in the NICL fraud case. FIA has indicted NICL ex-chairman Muhammad Ayyaz Niazi and others employees namely Executive Director Zahoor Ahmed, General Manager (Audit) Athar Naqvi, General Manager Real Estates Zahid Hussain and JS Investment Ltd.
The documents said that NICL invested an amount of Rs 2 billion in JS Fund for a period of 42 months without any tender or the permission of the federal government, but after a year NICL withdrew the same amount from the fund on the pretext of brokerage houses reports. In contrary, the FIA during the investigation found the reports of all the brokerage houses, which indicated to ‘hold’ the investment and if such investment continued the NICL could have gained projected profits of Rs 940 million or 47 per cent of the total investment.
According to the documents, the board of the Directors of NICL, on March 12, 2009, had proposed (not approved) the investment of Rs 2 billion in pre-IPO of JS principal Secure Fund-I. While proposing the said investment no comparison, examination or evaluation was carried out with other offers or proposals.
The documents also highlighted that after receiving the proposal from JS Investment, the chairman of the Board on March 13, 2009, issued two cheques of Rs 300 million and Rs 1.7 billion the very next day in favour of the fund for a period of 3 years and 6 weeks.
Meanwhile, FIA’s Corporate Crime Circle (CCC) had initiated the probe of this whole scam five years ago but could not complete it because of the petitions filed by JS Investment and ex-chairman of NICL Ayyaz Niazi, who instead of cooperating with the FIA, separately filed petitions in SHC.
In an order dated October 19, 2016, SHC directed NAB, “the NAB would conduct inquiry/ investigation etc against NICL for the Rs 2 billion investment alleged scam and the petitioner would render necessary cooperation in providing all information in the NAB as when required, however, neither the petitioner nor any officer would be summoned by the NAB, if the NAB during the investigation against NICL comes to the conclusion that there is sufficient material against the petitioner or the petitioner had any role and involvement in the alleged scam, which can trigger the provision of NAB Ordinance 1999, then a reference would be made to this court seeking permission for initiation of inquiry/investigation against the petitioner.”
However, former NICL chief, Muhammad Ayyaz Khan Niazi, had also gone to the Supreme Court against alleged harassment by the personnel of the investigation agency and the court had directed FIA to refrain from harassing or taking any action contrary to the law against the former NICL chairman in relation to this scam.
Ex-Chairman NICL Muhammad Ayyaz Niazi was appointed on 12 Feb 2009 through a notification of Commerce Ministry dated June 8, 2009.
The Audit department in its latest report noted the name of Executive Director Zahoor Ahmed, General Manager (Audit) Mr Athar Naqvi, General Manager Real Estates Mr Zahid Hussain were appearing in the list of authorised bank account signatories for local and foreign currency accounts as on Dec 31, 2010, while those officers were suspended much earlier on Nov 3, 2010.
