Mega scams during 2010: Commerce Ministry remains in focus

Commerce Ministry leads in terms of remaining in the focus of public attention due to mega financial scams involving billions of rupees during 2010. These mega scams included import of one million tons of used furnace/lube oil, fake export/import permission, enhancement of age of used car imports, purchase of property, import of sugar, illegal withdrawal of substantial amount from an official bank account.
The first three scams are directly related to the Ministry, whereas the others were exposed in attached organisations, like National Insurance Company, Trading Corporation of Pakistan (TCP), and National Tariff Commission (NTC). The Ministry shelved its plan regarding import of one million tons of used furnace/lube oil when this scam was exposed by Business Recorder, and was subsequently taken up by the electronic media and Parliament.
The Ministry, according to official documents, allowed import of used furnace/lube oil on the recommendation of a member of National Assembly from Balochistan for a Multan-based company. Import of used furnace/lube oil is banned under Basel Convention. No action was taken against any official implicated in this scam. Secretary Commerce, however, surrendered a grade 21 official of the Ministry who had applied for a couple of months' leave. The official is now serving in the Ministry of Food and Agricultural (Minfa).
With regard to issuance of fake export/import permissions, the Commerce Secretary took serious note of this scam and referred the case to the Federal Investigation Agency (FIA). The scam is still under investigation. Initial reports suggest that a group of lower staff was involved in these permissions, which were exposed by the customs department.
Sources say that Secretary Commerce is well aware of the bounty involved in enhancement of age for import of used cars, as one affectee did approach the Secretary and briefed him about officials seeking Rs 50,000 in return for granting him exemption in the age of the imported car. The affectee, however, did not give any written statement to the Secretary.
When the financial scam in NTC was unearthed by media, the Commerce Ministry not only referred the case to FIA but also constituted an inquiry committee in the Ministry to probe the matter. The committee, in its recommendations, found low grade officials guilty, but the key official who signed cheques for millions of rupees, was not touched and is still occupying a top slot in the NTC.
The mega Rs 6 billion scam of NICL is being probed by FIA, Lahore and Karachi, and the suspended Chairman of the company, Ayaz Khan Niazi, is now behind bars. A number of his accomplices are also in jail, including former Minister for Defence Production Habib Ullah Warraich. However, his son, Mohsin Habib Warraich, has absconded.
Two accused involved in land purchase deal in Korangi (Karachi) have also absconded. Recently, FIA raided the office of Moonis Elahi, son of former Chief Minister, Punjab, Pervez Elahi, and detained his manager. Secretary, Interior, Qamar-uz-Zaman, who signed at least three deals as representative of Commerce Ministry has not been questioned so far. Qamar denies that he was involved in this scam, but acknowledged before a panel of senators that he signed the documents as a member of the Board of Directors (BoDs), in good faith.
FIA is harassing Chairman of Transparency International Pakistan, Adil Gilani, at the behest of some federal ministers who had openly criticised him after the Berlin-based Transparency International (TI) improved Pakistan's world ranking in corruption.
TCP deals with import and export of commodities on the instructions of federal government. It remained in the media in respect of sugar import scam in which a number of favours were given to a few importers who failed to deliver. Consequently, the price of sugar skyrocketed and the 'real players' made billions within days. No action has been taken against any official of the TCP, including a couple of Directors, who also visited Dubai to reportedly set up their accounts.
The government ousted the TCP from sugar business during the current fiscal year on the demand of Deputy Chairman of Planning Commission, Dr Nadeem ul-Haq. Recently, the ECC also decided not to allow TCP to import urea. The Deputy Chairman of Planning Commission is also making his 'best' efforts to disband TCP. Secretary Commerce, Zafar Mahmood, who personally appeared before the Supreme Court in NICL scam, was not available for comments.