Netting two former PMs major challenge for new NAB chief

Netting two former PPP prime ministers, Yousaf Raza Gilani and Raja Pervaiz Ashraf, is a major challenge for the newly-appointed chairman of the National Accountability Bureau (NAB), Qamar Zaman Chaudhry.

The two former prime ministers are allegedly the principal accused in infamous cases of the Oil and Gas Regulatory Authority (OGRA) chief appointment and corruption in the Rental Power Projects (RPPs).

The cases of embezzlement of billions of rupees are already pending with the Supreme Court while investigation into Rs 20 billion Modarba fraud is yet to be finalised.

An official source told Pakistan Today that the RPPs case was under investigation and it was highly likely that the name of the former premier, Ashraf, would be included in the reference once the investigation was completed.

In his first official instructions after assuming charge, the NAB chief on Tuesday directed NAB officers to swiftly complete investigation into major corruption cases reported during the PPP rule, including 12 cases of the Rental Power Projects (RPPs), the appointment and corruption by former OGRA chief Tauqir Sadiq and Modarba scams and meet all the deadlines given by the courts in this regard.

Chairing a briefing during his first visit to NAB Rawalpindi regional office, Chaudhry, directed all NAB officers to follow the court’s orders in letter and spirit.

The NAB chairman was briefed in detail on the major corruption cases including the three major cases of RPPs, OGRA and Modarba. Top muftis and religious scholars have been booked in this scam reportedly of Rs 350 billion and involves some big fish, including a mufti who is known for gold and diamond trade in Africa, Thailand and Malaysia.

“He instructed NAB Rawalpindi to complete all inquiries and investigations into the ongoing cases especially the RPPs, OGRA and Modarba scams at the earliest so that appropriate action could be taken, and implementation report could be submitted to the Supreme Court,” said a statement.

The statement added that the NAB chairman directed that the Operations and Prosecution Divisions should work in close collaboration to achieve the desired results in cases of corruption. He said he would extend all out support to the regions but field offices must reciprocate by producing results.

“The chairman appreciated the efforts of the Regional bureau. He however directed for further efforts to recover losses suffered by the state exchequer in mega cases and also recover dues of general public in Modarba,” the statement added.

Tauqir Sadiq’s appointment:

Gilani had illegally appointed Tauqir Sadiq, the brother-in-law of PPP top leader Jahangir Badr, as OGRA chairman in violation of rules. Later, Sadiq allegedly embezzled around Rs 80 billion. Sadiq, who had fled to the UAE following his arrest warrants, is being interrogated by NAB, who arrested him after a long battle with the Interpol and the UAE authorities.

RPPs case:

The NAB, under its former boss, Fasih Bokhari, had filed a reference about the RPPs to the NAB chairman but excluded the names of former prime minister Ashraf and other influential figures.

Ashraf was allegedly involved in an RPP contract (Naudero-II) to the Walters Power International and was labeled as principal accused. According to source, the Naudero-II project was the first of the 12 RPP cases in which the former premier had been implicated. However, after taking over as prime minister, Ashraf remained successful in excluding his name from the reference. This would be a new test for Chaudhry whether or not to order investigation into Ashraf’s involvement in the scam.

The source said Ashraf’s name had been excluded because the bureau had allowed him the opportunity to submit a written reply. On March 13, NAB discreetly ended its investigation without informing the Supreme Court and official documents revealed that the probe was closed three days before the end of the previous government’s tenure.

Recovery:

Despite the Supreme Court’s verdict to recover an amount of $223.58 million lost in the RPPs, the NAB has yet not recovered the amount from powerful owners and defaulters.

The SC had directed NAB to investigate into the matter and recover the amount from the sponsors and fix the responsibility on the state functionaries who misused their authorities in the installation of RPPs and allowed the agreements, which were not in the favour of the government of Pakistan, the source added.

Around 12 cases regarding RPPs were referred by the SC to NAB for probe. The accused include Shahid Rafi, former ministry of water and power secretary, Sheikh Zarrar Aslam, former additional power secretary, Engineer Tahir Basharat Cheema, former Pakistan Electric Power Company (PEPCO) MD and CEO, Muhammad Razi Abbas, ex-member PEPCO board of directors, Wazir Ali Bhayo, ex-member PEPCO board of directors, Rana Muhammad Amjad, ex-GM WPPO, Tariq Nazir, CEO/director Central Power Generation Company Limited (CPGCL), Abdul Malik Memon, ex-CEO/director CPGCL, and Rasool Khan Mehsud, ex-MD PEPCO, the source said.

The investigation against the aforementioned accused was conducted by several investigators of NAB who have collected evidence against the accused, the source said.

According to details, Rafi illegally allowed processing of unsolicited proposal in violation of PPRA Rules 2004 and obtained its approval from ECC through misleading the facts, the source said.

The accused failed to exercise his authority while giving the undue benefit to the sponsors of RPPs by allowing shifting of machinery without having approval from competent authority even though the GM (WAPDA) Power Privatisation Organisation (WPPO) on May 7, 2010 conveyed the decision of PEPCO and CPGCL Board of Directors that the company’s request for shifting of machinery was unwarranted and could not be granted to but the said accused granted undue benefit to the sponsor while accepting proposal that was not in the favour of government of Pakistan, the source added.

Similarly, the accused Zarar Aslam willfully allowed processing of unsolicited proposal in violation of PPRA Rules and obtained the approval from the ECC through misleading facts and he observed that the misuse of authority while giving undue favour to the RPP sponsor by violating rules of business through non circulation of agenda of Power Private Infrastructure Board (PPIB) meeting and accepting proposal not favourable to the government, the source said.

Engineer Tahir Basharat Cheema illegally allowed processing of unsolicited proposal in violation of PPRA Rules and misused his authority by authorising signing of the Rental Services Contract on March 4, 2010 while exercising undue influence on government officials in violation of NEPRA rules and directives, and failed to exercise his authority while allowing shifting of machinery without getting approval from the competent authority, the source added.

The accused Malik Muhammad Razi Abbass did not adhere to NEPRA rules and directives and failed to exercise his authority while giving undue benefit to RPPs sponsors by allowing shifting of machinery without getting approval from competent authority, the source added.

The accused Wazir Ali Bhayo did not adhere to the PEPCO Board of Directors’ decision and NEPRA rules. He failed to exercise his authority while giving undue favour to RPPs sponsors by allowing shifting of machinery without prior permission from the competent authority, the source said.

Similarly, accused Tariq Nazir willfully processed unsolicited proposal in violation of PPRA Rules 2004 and misused his authority by signing of RSC without approval of CPGCL board of directors. He accepted undue influence from managing director PEPCO and others while committing violation of NEPRA rules and directives and granted undue favour to the sponsor while accepting the proposal that was not favourable to the government, the source added.

Rana Muhammad Amjad willfully allowed processing of unsolicited proposal in violation of PPRA Rules 2004 and misused his authority by exercising undue influence on the PEPCO MD and others for signing of RSC in violation of NEPRA rules and directives and willfully failed to adhere to the PEPCO board of directors’ decision while preparing the working papers in violation of rules. The accused miserably failed to exercise his authority while giving undue benefit to the sponsors of RPPs by allowing the shifting of machinery, the source added.

The NAB investigators are investigating the 12 RPPs projects on various locations, while these plants were owned by various sponsors and owners, the source revealed.

The source said more than 50 individuals and officials of various distribution companies, ministries and PEPCO were placed on the exit-control list (ECL).