SC decides to take up Sultan’s report on BoP scam

KHUDAYAR MOHLA

ISLAMABAD: The Supreme Court has decided to take up former Investigating Officer Aftab Sultan’s report, which disclosed the committed Rs76.178 billion corruption at the Bank of Punjab (BoP) during Musharraf’s regime.

During the course of hearing on Jan 9, the Chief Justice Iftikhar Muhammad Chaudhry had observed that the court would take up shortly the Aftab Sultan’s investigation report on irregularities in BoP shortly. 

A 5000-page report was prepared by former Punjab Additional Inspector General Police Aftab Sultan, who headed a joint investigation team formed by the apex court in June 2010 to look into irregularities in the BoP as the court was not satisfied with the investigations conducted by the NAB.

The Supreme Court in response to BoP’s objections on Jan 09 had directed National Accountability Bureau (NAB) to file a plea bargain before the National Accountability Court which was filed in the Accountability Court Lahore on January 11.

The NAB had already accepted the plea bargain of Sheikh Afzal, the main accused and owner of Haris Steel Mills. The matter is likely to be resolved in the apex court during the current month, sources told this correspondent.

Legal experts stated that the court’s decision to examine Aftab Sultan’s report may irk several influential politicians and senior bureaucrats of the Punajb, who were occupying senior positions during Mushrarraf’s dictatorship.

Talking to Business Recorder, senior counsel for BoP Rashdeen Nawaz Kasuri claimed that the NAB was not cooperating with the Bank’s administration and proceeding against those involved in the scam in view of Aftab Sultan’s report.

Kasuri maintained that the BoP administration was very concerned about the non cooperation of the top anti-graft body because no measures had been taken by the Bureau even after the bank repeatedly filed applications in pursuance of the Aftab Sultan report.

Sultan’s report disclosed a Rs 76.178 billion corruption and revealed that while on paper the Bank showed a profit from 2005 to 2008, yet in reality it was incurring a loss.

The report also claimed that the then Chief Minister Punjab, Ch Pervaiz Elahi, siphoned Rs5.4 billion from the BoP while former Chairman Federal Board of Revenue (FBR), Salman Siddique, approved an unlawful credit proposals of Rs1.1 billion in July 2006. The report said that during the course of investigations, 61 individuals were examined as witnesses under Section 161 of the Code of Criminal Procedure.

The report suggested to the apex court in April 2011 that the NAB may be directed to file a separate reference against directors, Farid Mughis Sheikh, Khurram Iftikhar, Ijaz Gohar and Mian Latif, who availed credit facilities for their industrial groups in contravention of the Bank of Punjab Act.

Sultan also claimed in his report that  former Punjab Chief Minister secured a loan of Rs 5.4 billion from the bank in the name of Phalia Sugar Mills while the amount was later spent on a new project, ‘Colony Sugar Mills’. The report alleged that the then Chief Secretary Punjab, Kamran Rasool, took a long leave and during the leave period worked in Pervaiz Elahi’s mills while remaining the Chairman of the Board of Directors at BoP. During this period, he also interacted with the then president of BoP, Hamesh Khan.

According to the report, FBR Chairman, the then one of the two directors of the bank, approved, on behalf of the board of directors of BoP, unlawful credit proposals amounting to Rs1.1 billion in July 2006.

The report maintained that Hamesh Khan, with the help of Board members, approved loans to bank defaulters. Terming the BoP scam one of the largest swindles in the country’s history, the report recommended to the apex court to direct the Punjab government to consider privatization of BoP.

 The report said when media scrutiny of the Bank started on June 21, 2007 its very continuity came into question when its equity market capitalisation declined by a whopping Rs64 billion within a short period of time.

The report contended that the bank’s survival was vital for more than 5,000 families who depended on the bank for incomes. More than any body else, the depositors would be the greatest losers if the bank goes bankrupt, according to the report.

The report suggested that the NAB may be directed to move for the cancellation of bails of the accused so that the money and valuables illegally obtained by them could be recovered; and requested the court to direct the Punjab government to amend the Bank’s by-laws and allow the Punjab Assembly’s public accounts committee to review all appointments to the Board of Directors.

The 19 accused who allegedly inflicted huge losses to the Bank were identified in the report, and suggested that the State Bank may be directed to strictly regulate the Asset Valuators and Surveyors.

Shockingly, board of directors of the Bank of Punjab, formed fake companies and obtained loans of over Rs6 billion. Expressing alarm over this, the Chief Justice had asked during the hearing of BoP scam case, “How is it possible that bank directors allowed loans to themselves? Massive corruption has been committed in the Bank of Punjab”.