The Federal Board of Revenue (FBR) has detected a unique misappropriation case where a former Additional Collector of Customs tried to frame bogus charges of over Rs 460 million in a state warehouse for launching a deliberate character assassination campaign against his seniors in the Model Customs Collectorate (MCC), Lahore.
Sources told Business Recorder here on Monday that the Collector of Customs, MCC, Lahore, has requested the FBR to charge-sheet the concerned Additional Collector of Customs for committing "insubordination" and "indiscipline", which constitute the offence of "gross misconduct". The Collector of MCC, Lahore, has informed the FBR that the concerned Additional Collector of Customs had made an attempt to launch character assassination campaign against Model Customs Collectorate (MCC) Lahore.
According to the report of Collector MCC Lahore to the FBR, the task of stock taking of State Warehouse at Multan Road, Lahore was assigned to an Additional Collector. The audit and stock taking report, as submitted by Additional Collector (HQ), has been examined. A perusal of the stock taking report indicates certain blatant deficiencies and flaws which are as under:
An amount of about Rs 400 million has been alleged to have been misappropriated by way of alleged dubious and unlawful releases of miscellaneous goods from the state warehouse but the report does not have any details or break-up of the cases to which this alleged loss has been attributed. The absence of significant and necessary details not only raises doubts about the authenticity of misappropriation of Rs 400 million but also renders audit/stock taking as having been conducted in a superficial and cursory manner.
As per report of the Collector, MCC, Lahore, 36 seized/confiscated vehicles are reported to have been stolen/misappropriated from the warehouse, which does not seem to be based on facts. A revenue loss of Rs 20.550 million has been attributed to the above category of vehicles. It appears that the stock taking team has not consulted the records of the seizing agency ie Anti-Smuggling Organisation (ASO), for reconciliation purpose.
Apparently, it is not possible that 36 vehicles have been stolen from the warehouse and 73 vehicles have been parked there without any entry. Reportedly, 18 of the alleged stolen vehicles are available in state warehouse, 1 vehicle is parked at Custom House, Lahore, 2 vehicles are in operational use, 3 vehicles have been sold to other Departments, 2 vehicles have been auctioned, 3 vehicles have been released as a consequence of adjudication or appeals, and 5 vehicles have been released after payment of duty/taxes on the body.
However, 2 vehicles are being traced out. The status of alleged missing vehicles should have been ascertained/cross-checked from the records of ASO as well. As is evident from the aforesaid, the position needs reconciliation from the original record. Collector, MCC, Lahore, further said that due to non-availability of adequate covered space in the state warehouse, the seized/confiscated vehicles are parked in open lots which are on mercy of weather.
It has also been alleged that parts of many vehicles have been removed/stolen. However, it has not been indicated as to which components/parts have been removed/stolen and from which vehicles. Further details in this regard have not been made part of the audit/stock taking report. Ironically, revenue loss of Rs 14.400 million has been attributed to the deterioration of the aforesaid category of vehicle but neither the vehicles have been examined by the concerned Examiners nor value thereof has been assessed by any appraising officer. The estimation of revenue loss is quite hypothetical and obviously exaggerated.
According to the report of the Collector, MCC, Lahore, the stock taking report is biased in so far as four officials including superintendents and one Additional Collector have been held responsible for the loss of revenue hypothetically estimated to be Rs 460 million. However, keeping in view the mala fide of the report, the proposal quite understandably does not indicate the tenure of posting of each official held responsible, in the state warehouse whereas a number of officials have remained posted in state warehouse during the period taken for stock taking ie September 2000 to March 2011. A list of such officials ie Superintendent, Deputy Superintendent and Inspectors who remained posted to staff warehouse during September, 2000 to April, 2011 has also been submitted to the FBR. The report is also silent about specific role of each official. The reasons for this omission are of course best known to the author of the report. The above aspect has rendered the aforesaid audit/stock taking report not only subjective but also biased.
As per established standards and practice, during the course of stock taking, normal activities of deposit into and release of seized/confiscated goods from state warehouse are stopped forthwith till completion of audit/stock taking whereas during this stock taking normal activities were going on as is evident from the fact that non-duty paid goods seized in 26 cases and smuggled vehicles seized in 41 cases were deposited in state warehouse. Similarly, seized goods in 12 cases were auctioned and released after payment of duty/taxes and 20 seized vehicles were also auctioned and released after realisation of sale proceeds. Furthermore, 5 carrier vehicles were also released either on payment of redemption fine or allowed interim release, the Collector said.
Sources said that a perusal of the stock taking report shows that it does not give specific proposals for remedial measures to be adopted/taken by the Collectorate for smooth functioning of state warehouse in accordance with the prescribed procedures.
In his report, Collector, MCC, Lahore, further stated that a plain reading of the audit report establishes that the report has been prepared with malicious intent and targets certain officials/officers. This impression is further strengthened by the following facts:-
The audit has been conducted from the year 2000 to 2011 but only one Additional Collector Customs, the immediate predecessor of the author of the audit report, has been blamed for all alleged ills. How can only one officer be held responsible for the alleged losses of state warehouse of the last 11 years? This can of course only be explained by the Additional Collector/author of the report.
It has been alleged that there had been collusion between the staff of ASO, Airport and state warehouse. It is logically and practically not possible that so many officials, who have been posted in three different organisations, could have colluded over such a long period of time. Further, no corroborating evidence was placed on record to prove the alleged collusion by the Additional Collector.
Surprisingly, no violation of the provisions of the Customs Act, 1969 has been pointed out; rather direct recourse has been taken to the Pakistan Penal Code.
From the above narrated facts, it can be concluded safely that the audit/stock taking report is based on hypothetical and presumptive analysis and is not supported/corroborated by any data which can substantiate and justify the misappropriation of more than Rs 460 million. The above audit/stock taking report obviously leaves much to be desired.
It was because of the deficiencies and flaws as identified above that the Additional Collector Customs, Lahore Dry Port was assigned to conduct a comprehensive and meaningful audit/stock taking of state warehouse, but the Chief Collector (North), communicated that the stock taking be assigned to the officer under whose jurisdiction that section/organisation falls and that the stock taking could not be conducted by Additional Collector, LDP, as the state warehouse falls outside her legal jurisdiction.
This was strange justification/reason to stop stock taking entrusted by the undersigned to an impartial and senior most Additional Collector ie ADC (LDP). Subsequently, the Chief Collector (North) constituted an Enquiry Committee to probe and investigate the allegations. Outcome of the audit/stock taking, assigned to the committee, shall be communicated in due course of time, sources said.
It may however not be out of place to mention that during his tenure of three months in MCC, Lahore, the Additional Collector has demonstrated a consistent pattern of behaviour which can best be described as launching a deliberate and calculated vilification campaign of character assassination filled with malicious and baseless accusations against the Collectorate and certain officers/officials driven by ulterior motives.
On April 19, 2011, purportedly following up a vague and anonymous complaint against a UDC, he raided a public office at the Lahore Dry Port without any authorisation whatsoever from the Collector or without informing the Additional Collector In-charge Lahore Dry Port. He conducted body search of one UDC and also carried out search of his office which did not lead to anything to establish the charges which were contained in the anonymous complaint. A copy of the incident report as forwarded by Additional Collector Customs Lahore Dry Port, officer in-charge, is also enclosed as for ease of reference.
On May 7, 2011, he suddenly and surprisingly visited Wagha Customs station without any intimation or discussion with any body, purportedly on the basis of complaints of alleged corruption at Wagha published in a section of press. He identified one Superintendent, one Deputy Superintendent and one Inspector and termed them as the primary source of corruption at Wagha Check Post.
He also tried to surrender the above officials to the Headquarters without any authority and also requested to immediately suspend them and initiate disciplinary action against them. However, he did not put on record any incriminating evidence, proof or any other material which could have justified such a public demonstration of accusations and high profile actions on his part.
This act of slander and accusation was yet another step in his calculated campaign to vitiate the environment and to scandalise the Collectorate by writing such baseless report. He broke the chain of command by marking copies of this baseless report directly to the senior officers at Federal Board of Revenue.
In view of the consistent pattern of behaviour of the former Additional Collector, which can only be described as launching a deliberate and calculated campaign of character assassination filled with malicious and baseless accusations, a draft charge-sheet has also been sent to the Member (Customs) for the acts of "insubordination" and "indiscipline" which constitute the offence of "gross misconduct", the Collector, MCC, Lahore, added.
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