Senate Standing Committee on Commerce on Friday admonished the Federal Investigation Agency (FIA) for reportedly giving a clean chit to the suspended Chairman National Insurance Company Limited (NICL), Ayaz Niazi who is allegedly involved in Rs 5 billion real estate scam.
The committee which met with Senator Ilyas Bilour in the chair rejected all previous evaluations of the purchased property and directed the FIA to advertise the four properties in the press for sale. Senator Haroon Akhtar, Senator Ishaq Dar and Senator Sameen Siddiqui raised a number of questions over the FIA investigation, which is still incomplete especially with respect to purchase of land in Korangi and Dubai.
"Sell these properties through fresh advertisement to recover the maximum possible. You will also find out the price difference between previous and fresh evaluation," directed the committee. Senator Bilour also warned not to give a clean chit to Niazi whatever backing he may have, as he does not deserve compassion.
Niazi, who is principal accused in the NICL scam is in Karachi jail, however, three other accused namely Khalid Anwar, Khawaja Akbar and Ameen Qasim Dada, are still at large. Korangi''s land was initially owned by the Gabools but later on it was sold to Sadar-ud-Din Hashwani.
The FIA team headed by Director General Waseem Ahmad and comprising Director Punjab, Zafar Qureshi and Director Sindh, Moazzam Jah briefed the committee about the progress. Sources revealed that Director FIA, Punjab is under pressure and the DG was sent with him to brief the committee.
The FIA has recovered Rs 1.83 billion so far from the accused and is making all-out efforts to bring back all the looted money back. However, the FIA did not disclose the names of those persons who received agreed ''shares'' in their accounts.
"The Supreme Court is monitoring us closely and in this situation we cannot support anybody even if we want to. We acknowledge that a fraud, a crime and embezzlement has been committed in NICL," said Waseem Ahmad. The role of Transparency International Pakistan (TIP) also came under discussion in the meeting especially the link between TIP Chairman Adil Gilani and Ameen Qasim Dada.
The committee assured full support to the FIA in investigating TIP, which, according to one of the Senators, had shaken the government. "There is a missing link between Adil Gilani and absconder Ameen Qasim Dada, who is still in Karachi but not arrested," said Zafar Qureshi. However, Director General FIA stopped him from making any further statement.
The FIA admitted that value of the properties procured was much lower than the real value, however the difference between purchase price and market value was minimised. Director General FIA apprised the committee that in view of conflicting evaluation of the property, it has been decided to get the same be evaluated from M/s Nespak which is reputed and on the approved list of evaluators of Pakistan Banking Association (PBA).
With regard to Dubai property, the FIA informed the committee that its evaluation was also on higher side but the owner who is a French national is not co-operating with the agency. Senator Ishaq Dar apprised the FIA team that Ayaz Niazi had admitted before the committee that he would rent out Dubai property and submit post-dated cheques, but he did nothing and is a ''dare devil''.
According to the written brief given by the FIA, procurement of 803 Kanal 19 Marlas plot in Lahore reportedly belonging to former MNA Habibullah Warraich, with current market value of Rs 300,000 per kanal, was bought by NICL at Rs 2,000,000 per kanal. 27,000 sft office space in Dubai in Liberty Tower was purchased in July, 2009 at UAE Dirham, 27700 per sft, against the market price of AED 1200 per sft. Alleged loss to exchequer is Rs 900 million. 10 acre plot purchase in Korangi Deh Phihai, in August 2009, @ 90,000,000 per acres against maximum market price of Rs 20,000,000 per acre. Total loss Rs 700,000,000
Award of contracts of painting work and furniture to M/s Casa Bella Lahore, Karachi @ 9,310,000, even though M/s Casa Bella is not a license holder of Pakistan Engineering Council. The tender for Karachi was for 6 floors, but the contractor has been asked to furnish only 4 floors. The FIA, in its consolidated report admitted that Rs 1.5 billion land purchased in Lahore in 2009 from Mohsin Warraich had a market value of Rs 30 million, which implies Rs 1.2 billion loss to the exchequer.
Resultantly, five different cases about each aforementioned allegation were registered by the FIA Lahore and FIA Karachi against the chairman/members of the Board of Directors including concerned officers of NICL and others. Precise details of each case with present position are below:
FIA PUNJAB, LAHORE Case FIR No 24/2010 dated 12.10.2010 of FIA/ACC Lahore u/s 409,420,468,471. 109 PPC r/w 5(2)47 PCA about procurement of 803 Kanal - 19 Marla land by NICL in Lahore belonging to the family of Ex-Minister for State Habibullah Warraich, which has current market value of Rs 200,000 per Kanal, whereas NICL had purchased the same at the rate of Rs 2,100,000 per Kanal.
Progress-arrest of accused-during investigation, 15 accused persons were identified; out of which 11 have been arrested including Muhammad Ayaz Khan Niazi, Syed Naveed Hassan Zaidi and Syed Hur Riahi Gardezi, who were the Members of Board of Directors. Besides, Habibullah Warraich, Ex-Minister of State has also been arrested in this case along with others.
Accused Ayaz Khan Niazi was transferred from Karachi, where he was arrested by FIA Sindh, Karachi in 3 other cases. He, after thorough interrogation during remand, was sent back to Karachi. In this case total amount of Rs 1.6863 billion paid to the seller company by NICL has been recovered.
In addition to seizure of assets/properties, four accused have been declared as proclaimed offenders by initiating proceeding u/s 87 CrPC. The proceedings u/s 88 CrPC are under way. Red notice has also been got issued for the extradition of one of the main beneficiaries namely Mohsin Habib Warraich from UK. British High Commission in Islamabad has also been requested to assist the FIA for his arrest/deportation.
Interim charge sheets have been submitted in the Court of Special Judge (Central) Lahore. Final challan is under preparation and will be submitted in the court shortly. Case FIR No 29/2010 dated 13.11.2010 of FIA/ACC Lahore u/s 409,420,468,471, 109 PPC r/w 5(2)47 PCA about purchase of commercial plot measuring 20 Kanal 2 Marla at Lahore Airport Road, Lahore by NICL against Rs 1.06 billion in 2009 from Mohsin Habib Warraich, whereas market value of the land was Rs 150 million only, resulting approx. loss of Rs 915.3 million to government exchequer.
During investigation, 10 accused persons were identified, out of which 05 have been arrested including Muhammad Ayaz Khan Niazi ex-Chairman/ Members of Board of Directors NICL. In addition to seizure of assets/properties, three accused have been declared as proclaimed offenders by initiating proceeding u/s 87 CrPC. The proceedings u/s 88 CrPC are under way.
The report further suggested that NICL got the valuation of land from M/s Medillion Services at the time of purchase subsequently, the land in question was evaluated by the Ministry of Commerce, from the National evaluation company which was considered by FIA on higher side. During the investigation FIA got the same property valuated from the Revenue Department, which assessed it on a much lesser value. Hence, on the request of FIA, NICL got the said property valuated from M/S Ahmad Associates, which assessed lesser value of the property amounting to Rs 80,400,000 (Rs eight crore and four lac only) as compared to its purchased price. Accused Mohsin Habib, however, had submitted a post-dated cheque of differential amount of Rs 84 million in favour of NICL payable by 31.12.2010. In the meanwhile, a request was made by the accused to extend the encashment date up to 10.01.2011. Presently, a sum of Rs 25,000,000 has been deposited in the account. However, this last valuation report has been considered as doubtful because the said valuator was not competent enough to evaluate the property beyond the limits of 400 million as per authorisation from PBA. Hence, requires fresh independent evaluation from a more credible evaluator from Nespak, which is on the approved list of evaluator of Pakistan Banking Association.
Interim charge sheets have been submitted in the Court of Special Judge (Central) Lahore. The investigation is in progress. Proceedings u/s 87 CrPC have been completed against all the three absconding accused persons. Efforts are being made for early arrest. Red Notice for locating, arrest and deportation of accused Mohsin Warraich has also been got issued. His two landed properties have been identified and seized u/s 5(5) of FIA Act.
FIA SINDH KARACHI Case FIR No 13/2010 dated 22.11.2010 at FIA/CCC Karachi u/s 409.420.468.471. 109 PPC r/w 5(2)47 PCA regarding award of contracts of painting works and supply of furniture to M/s Casa Bella Lahore, Karachi @ Rs 26.987 million, and at Islamabad @ 9,310,000, despite the fact that M/s Casa Bella was not registered with Pakistan Engineering Council. The tender for Karachi was for 6 floors, but the contractor was asked to paint only 4 floors.
During investigation, 9 accused were identified, out of which 7 have been arrested including Syed Naveed Hassan Zaidi and Syed Hur Riahi Gardezi, who were the Members of Board of Directors.
In order to ascertain the volume of loss to the NICL Services of M/s Nayyar Ali Dada was hired for valuation/assessment of the furniture and paintings art supplied by M/s Casa Bella to NICL offices. M/s Nayyar Ali Dada, after evaluation, has conveyed that generally they feel that the price paid and the furniture standards are reasonable. The size of each artwork and price is generally comparable to market price of similar art.
The management of NICL has conveyed that they are inclined to accept the valuation assessment and they believe NICL did not incur any financial loss in the deal with M/s Casa Bella. Interim challan was submitted in the Court of Special Judge (Central-I) Karachi on 07.12.2010. The case had been fixed for 12-01-2011.
Case FIR No 14/2010 dated 22-11-2010 at FIA/ CCC Karachi u/s/ 409,420,468,471,109 PPC r/w 5(2) 47 PCA about purchase of 27,000 sft office space in Dubai in Liberty Tower in July 2009 @ UAE Dirham 2700 per sft, against the market price of UAE Dirham 1200 per sft, causing alleged loss of Rs 900 million to the exchequer.