REFERENCE / COMPLAINT NO. 5/2006

Reference dated June 6, 2006 – Kamra Grid Stations

The Chairman,
National Accountability Bureau
Islamabad.

Pakistan Peoples Party………………………………COMPLAINANT

VS

1. Brig. (Retd) Zulfiqar Ali Shah, Pakistan Aeronautics Complex, Kamra

2. M. Younis, Section Officer, Pakistan Aeronautics Complex, Kamra
----------------------------------------------- ACCUSED / RESPONDENTS

COMPLAINT UNDER SECTION 5 AND 18 (B) SUB SECTION-II OF THE NATIONAL ACCOUNTABILITY BUREAU (NAB) ORDINANCE 1999, AGAINST THE HOLDERS OF PUBLIC OFFICE FOR PUNISHMENT UNDER SECTION 10 OF NAB ORDINANCE FOR CAUSING HUGE FINANCIAL LOSS TO THE NATIONAL EXCHEQUER BY CORRUPTION AND CORRUPT PRACTICES


FACTS AND GROUNDS:
1. That the respondents were deeply involved in Aeronautics Complex, Kamara Grid Station Scam.

2. That the sespondent No 1 Brig. (Retd) Zulfiqar Ali Shah allegedly paid Rs 20.278 million extra to a private company for the installation of a grid station in Aeronautics Complex, Kamra and in return received Rs. 12 million in kick-backs.

3. That the ruling party PML-Q, MNA Col. (Retd) Ghulam Rasul Sahi, Chairman of sub-committee of Parliamentary Public Accounts Committee, who headed the two member sub- committee on defence production, did not differ with the point of view of the audit representative.

4. That the Audit representative stressed that the Law Ministry had clearly stated in the recommendations sought by the sub committee of Parliamentary Public Accounts Committee that National Accountability Bureau (NAB) could proceed against retired army officers involved in corrupt practices during their services under section 9 of the NAB Ordinance 1999.

5. That Maj General Tariq Saleem Malik, Additional Secretary Defence Production told the sub- committee of Parliamentary Public Accounts Committee that a court of inquiry had found that two officials Brig. (Retd) Zulfiqar Ali Shah and Section Officer M. Younis were involved in awarding the contract to the private company AEG International, and had received Rs. 8.950 million and Rs 3.838 million respectively in kickbacks from the contracting company.

6. That the GHQ has already expressed its inability to take action stating that since the officers had been retired from the army service, it could not take action against them as printed in the last para of the enclosed Press clipping of daily “The DAWN” dated 26-5-2006.

7. That it is unfortunate not to send the case to the NAB even after Major General Tariq Saleem Malik, Additional Secretary Defence Production told the sub- committee of Parliamentary Public Accounts Committee that the court of inquiry had found the two officials Brig (Retd) Zulfiqar Ali Shah and Section Officer M. Younis guilty.

8. The above facts have been published in daily “The DAWN” dated 26-5-2006 (Press clipping attached for ready refernce).

9. The respondents in this complaint do fall within the ambit of NAB Ordinance 1999 for the purposes of investigation, trial and punishment.

10. The Respondents are reportedly guilty of corruption and corrupt practices and abuse of power as defined in Section 9 of the Ordinance and as such are subject to punishment under Section 10 of the NAB Ordinance 1999 based upon the above facts and grounds:

CONCLUSION:
Based on the above facts and grounds respondents have shown willful indulgence in corrupt practices under Section 9 of the Ordinance. Such persons are subject to punishment under Section 10 of the NAB Ordinance 1999.

As such the Chairman National Accountability Bureau is called upon to initiate investigation in connection with matters set out herein above and further proceed to file a reference against the respondents for violating the provisions of Section 9 of the Ordinance punishable under Section 10 of the Ordinance in Competent court of law and proceed against those concerned for violating Section 9 of the NAB Ordinance 1999.

Complainant :

Pakistan Peoples Party

Through:

Ch. Mohammad Aslam
Advocate
Dated : 6 June 2006
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PAC body reluctant to refer Kamra grid case to NAB

By Our Reporter

The Dawn - 26 May 2006

ISLAMABAD, May 25: Despite insistence of the audit department, a sub-committee of the Public Accounts Committee (PAC) here on Thursday showed reluctance to refer the Kamra grid station scam, in which an army brigadier is allegedly involved, to the National Accountability Bureau (NAB).

The brigadier, who is now retired, allegedly paid Rs20.278 million extra to a private company for the installation of grid station and in return received Rs12million in kickbacks.

Ruling party MNA, Col (Retd) Ghulam Rasool Sahi, who headed the two-member sub-committee on defence production, with PPP MNA Chaudhry Qamar-uz-Zaman Kaira as member, met here to investigate the Aeronautical Complex Kamra Grid Station scam. The sub-committee, however, did not differ with the point of view of the audit representative.

The audit representative stressed that the law ministry had clearly stated in its recommendations sought by the sub-committee that NAB could proceed against retired army officers involved in corrupt practices during their services under Section 9 of the NAB Ordinance 1999.

The sub-committee observed that it did not differ with the audit’s point of view, but wanted that the ministry for law, justice and human rights should give directions in black and white whether to send the case to NAB. By doing this, the sub- committee, actually provided more time to accused to refund the amount before the NAB stepped in.

Mr Sahi also directed Maj Gen Tariq Saleem Khan, additional secretary of the ministry of defence production to convey the sense of the committee to the accused, Brig (retired) Zulfiqar Ali Shah, and pursue him to refund the embezzled amount as directed by the AGP and court of inquiry.

Otherwise, the case would be forwarded to NAB. Mr Sahi, who had been very proactive in the previous meetings of the PAC on Thursday seemed too lenient to be ignored by the participants of the meeting.

Maj Gen Tariq Saleem Malik, who represented the ministry of defence production, said that inquiry was initiated on the directives of AGP after noticing a huge difference in contract amount for the identical 132 KV grid stations to a private company in Kamra Complex (Rs 60.50 million in 1995) which had completed the same grid station at Heavy Mechanical Complex Taxila for just Rs40 million in 1994.

He said that the court of inquiry had found that two officers, Brig Zulfiqar Ali Shah and Section Officer M. Younis were involved in awarding the contract to the private company, AEG International, and had received Rs8.950 million and Rs3.838 million respectively in kickbacks from the contracting company.

The inquiry also directed departmental action besides recovery of Rs2.53 million of tax evasion against seven other officers included Maj Basir Ali Sadiq, M Ashraf Bajwa, Shaukat Hayat, Nasir Akhtar Shafi, Ghulam Ilyas, Ijaz Ahmed and Maqsood Khan.

The court of inquiry and AGP had recommended GHQ to initiate disciplinary action against the culprits besides recovering the embezzled money but the GHQ expressed its inability stating that since the officers had been retired from the army service, it could not take any action against them.