Large number of containers pilfered, Supreme Court told

The Supreme Court was informed on Wednesday that a huge number of Nato containers carrying Afghan Transit Trade (ATTA) goods have been pilfered inside the country without crossing the border, which caused about Rs 19 to 37 billion loss to national exchequer in the form of duties and taxes, during the last four years.
A three-member bench of apex court comprising Chief Justice Iftikhar Mohammad Chaudhary, Justice Ghulam Rabbani and Justice Khalil-ur-Rehman Ramday, was hearing a suo motu case, taken on media reports about liquor smuggling in containers meant for carrying ammunition, food and other necessities of life for Nato forces stationed in Afghanistan.
On September 30, 2010, the court had directed the Federal Tax Ombudsman (FTO) to file a comprehensive report over permission of contraband items under the garb of food supplies to the ISAF in Afghanistan under Afghan Transit Trade Agreement (ATTA).
FTO has submitted a comprehensive report in the apex court, testifying that a huge number of containers containing Afghan Transit Trade goods have been pilfered inside the country without crossing the border causing enormous loss to the national kitty i. e, between Rs 19 to Rs 37 billion.
FTO in its report pointed out that the loss caused at the hands of customs department during the past almost 4 years is a ''tip of the iceberg'' and if detailed inquiry is conducted the volume of loss could be much more higher than whatever has been already detected.
The FTO report in its recommendations to the apex court said that strict action is needed against all the concerned officials of customs to plug the loophole causing huge loss to the national economy already in the clutches of high inflation. The court observed in its order that it had gone through FTO report, which was not only comprehensive to the point with the reference mentioned in the complaint of smuggling of foreign goods in the name of Afghan Transit Trade.
The court stated that for the sake of justice it would be appropriate to provide the concerned departments the opportunity of hearing so they may also forward their comments in view of the report prepared by FTO. The court directed chairman Federal Board of Revenue Salman Siddique to assist the court and provide a list of all officials, including name of former chairmen of FBR, who were holding the position from January 1, 2007 to December 24, 2010, the members of Customs (Customs Collectors Karachi Port and Port of Qasim, Collectors of Quetta and Peshawar, Secretaries Commerce and Finance, Director General Customs Intelligence and Investigation and the relevant officers of NLC who were in-charge during that period to the court by January 20 so that notices could be issued to all concerned for their para-wise comments.
The court also sought from chairman FBR to identify any other official, prima facie involved in the alleged corruption. Justice Chaudhry observed that right from the top to bottom, tax officials are involved in the case, adding that without generating revenue, how the economy of country could move forward. He said that tax-generating system should be made transparent.
Justice Khalil-ur-Rehman Ramday said that if someone is in this illusion that by deputing person of his choice, he could influence the investigation, he is totally wrong, because the court would itself control the investigation. Giving the example of Harris Steel Mills case, he said, the court is itself controlling the investigation.
Justice Chaudhry said in the presence of customs officials and the Levis personnel, goods are being smuggled in and out of the country, but no one is there to question those who are involved in this illicit business. He said due to smuggling, national exchequer is facing a loss of about 2 billion dollars every year. The chief justice further said that even the markets in federal capital are flooded with smuggled goods. Justice Ramday said that the domestic borrowing have reached to Rs 4008 billion from 2008 to 2010. The court adjourned till January 27.