- Asad Rasool, who is allegedly involved in Rs 500m scandal, assigned responsibility of making deals for HBL and PIA privatisation
- PC Chairman Zubair Umar defends ‘corrupt’ official for $1.2b HBL divestment
The level of transparency in the government’s privatisation of the state-owned enterprises could be gauged by the fact that the Privatisation Commission (PC) has tasked its senior financial consultant, Asad Rasool, as transaction manager in the privatisation of Habib Bank Limited (HBL) and Pakistan International Airlines (PIA) despite him being under investigation simultaneously by National Accountability Bureau (NAB) and Federal Investigation Authority (FIA) in an embezzlement case involving Rs 500 million.
Documents available with Pakistan Today reveal that subsequent investigation reports by the PC, FIA and NAB had found Rasool responsible for lapse in transaction of Rs 500 million of the PC to Trust Investment Bank Limited (TIBL).
According to the documents, the commission lost proceeds from the sale of state-owned entities in the sum of Rs 500 million to TIBL in a “dubious transaction”.
In its enquiries, FIA held that the top financial consultants employed by the commission were involved in the transfer of the money to TIBL.
Per the internal enquiry, the senior financial consultant approved the placement of funds against the directive of Finance Ministry to TIBL for “reasons known only to him”.
Despite his previous involvement in the scandal and subsequent investigation against him which fixed responsibility on him, Rasool is still not only serving with the commission, but he has also been tasked to deal with a US$ 1.2 billion divestment of HBL besides dealing with the privatisation of PIA.
NAB INVESTIGATES TIBL SCAM:
The PC placed Rs 500 million with the TIBL through two separate certificates of deposits amounting to Rs 300 million and Rs 200 million on May 26, 2010 and June 28, 2010 respectively at a profit rate of 12.85 per cent.
According to the Finance Ministry’s directive, the commission was not permitted to transfer any such funds into any bank with less than ‘AAA’ ratings. Since TIBL was an investment bank with the credit rating of BBB-, it was not eligible to receive the government deposit.
The PC board refused to approve the placement of the funds. However, setting aside the board’s recommendations, the consultants of the commission decided to go ahead with their plan and placed the funds with the TIBL.
NAB spokesman Nawazish Ali Asim confirmed Pakistan Today that NAB was investigating the TIBL embezzlement case and Rasool was co-accused in the case. He said that TIBL Chief Executive Asif Kamal had offered a settlement plan, however, NAB did not process the request as it was not according to its voluntary return (VR) policy.
FIA PROBE REPORT:
Meanwhile, the FIA also carried out an enquiry into this matter and submitted its report to the Supreme Court. The report held that being the head of financial team on a market-based salary, the role of Rasool was to prepare financial reports, including the maintenance of accounts.
“He neither objected to the placement (of amount to TIBL) nor prepared appropriate reports or summary of risk in any case. He failed to point out the fallout effects of the early/premature withdrawal,” the FIA report said, a copy of which is available with Pakistan Today.
The FIA report highlighted that the Finance Division’s OMs of 2003, 2004, 2005 were not mentioned “intentionally”. The report said that the committee did not point out the risks for such early withdrawal of the amount from TIBL and the consequences thereof.
RASOOL’S CONTRACT EXTENDED:
Despite the gross negligence and the involvement in the fraud causing the exchequer to lose Rs 500 million of the taxpayers’ money, Rasool is involved in transactions of much bigger amount.
Meanwhile, Privatisation Commission Chairman Mohammad Zubair Umar has also extended Rasool’s contract, which has been extending over the years as he has been enjoying good relations with the PPP and PML-N governments.
Moreover, despite the subsequent investigation reports holding Rasool responsible for negligence, connivance and concealing facts in financial matters of the commission, the new PC chairman has tasked Rasool as transaction manager.
This “selective attitude” by the PC chairman has not only ring alarm bells for the country’s finance managers but it has also raised a huge question mark over the privatisation policy of the PML-N government.
ZUBAIR DEFENDS RASOOL:
When contacted, PC chairman, who was in London for finalising the privatisation of the HBL and PIA, said that allegations did not mean that Rasool had been found involved and that he was corrupt.
“If the country is left with the media, you people would find everyone corrupt in this country. This embezzlement was not committed by Asad Rasool. It was rather done by the then PC chairman (Senator Waqar). Investigation does not mean he is guilty,” he added.
Asked why the sensitive task of transactions had been assigned to Rasool while he was under investigation simultaneously by NAB and FIA, Zubair said that he did not want to add anything to the story.