NAB files reference in Rs100mn illegal investment by NICL

KARACHI: National Accountability Bureau (NAB) on Friday filed a reference against 13 accused persons of National Insurance Company Ltd (NICL) and First Dawood Investment Bank Ltd (FDIBL).

The NAB reference was made as the accused violated the policy with the malafide intention of illegally favouring FDIBL by boosting their financial health. The illegal investment caused loss to the national exchequer to the tune of Rs64.057 million.

On completion of the investigation, NAB Karachi has filed a reference against the accused. The reference has been filed on the allegations of illegal investment and restructuring of investment amounting to Rs100 million in FDIBL by NICL during 2008-09.

On the direction of Supreme Court of Pakistan, an inquiry was authorised into the matter of NICL. The allegations in the inquiry were substantiated and same was converted into an investigation.

The investigation revealed that NICL management on November 24, 2008, made an irregular investment of Rs100 million as a Certificate of Investment (CoI) with FDIBL on the offer to return at the rate of 18.5 per cent per annum for a period of six months. The said investment was made in violation of Finance Division. However, FDIBL failed to return principal amount of Rs100 million on the date of maturity, the reference said.