Preliminary enquiry into the allegations of massive financial irregularities in the Karachi Stock Exchange (KSE) has revealed that the former managing director of the country’s biggest bourse, Adnan Afridi, was not involved in any malpractice as being propagated by some vested interests, sources told Pakistan Today on Wednesday.
Informed sources said that an anonymous email was received by the KSE Board in which it was alleged that the former IT director had allegedly embezzled Rs 51.5 million in the procurement of IT software for upgrading the bourse’s trading system.
“The board initiated an enquiry into the allegations but in the meantime some vested interests started spreading rumours that the former managing director of KSE was also involved in the shady import deal,” said the sources.
An investigation by Pakistan Today revealed that all major IT purchases at KSE are undertaken after approval by the IT Steering Committee which is constituted by the board.
“The MD is not authorised to approve major capital expenditure. Moreover, during Adnan Afridi’s term, a system of pre-audit and post-audit was implemented to ensure that major purchases follow all required processes. Any conflict of interest or variation was reported to the board and approval was sought of the entire board,” said an official, asking not to be named.
Talking to Pakistan Today, Afridi denied that any enquiry had been initiated against him by the KSE board.
Meanwhile, the movers of the anonymous email have yet to come up with evidence in support of their allegations as the enquiry team has failed to locate the $0.75 million price quotation for the software which was alleged to have been procured later for $1.2 million.
The enquiry team is expected to come up with its findings after Eidul Fitr.
No evidence yet of ‘shady’ software deal at KSE
