The very existence of the Pakistan Real Estate Investment and Management Company (Primaco), a subsidiary of the Employees Old Age Benefits Institution (EOBI), has been found to be ‘illegal’ while corruption has also been uncovered at the organisation, a private news channel reported on Monday.
According to the TV channel, the observations were made in an auditor general report that has questioned the legal existence of Primaco, which is responsible to invest the parent company’s capital in construction projects.
According to the report, the existence of Primaco is illegal as it is against the 1976 Act of EOBI. Some major corruption charges have also been leveled against Primaco’s management. However, despite the observations made in the report, the company continues to operate and invest in future projects.
According to the channel, Primaco CEO Brig (r) Amjad Ali Jaan has categorically denied the allegations.
“Primaco was formed in 2006, and no report since then has raised the issue of its legality,” the channel quoted Ali Jaan as having said.
He further clarified that the corruption mentioned in the audit report pertains to the previous Primaco management under Zafar Gondal, whose case is already in the Supreme Court.
“I joined (as CEO) only a year ago and since then we have been working to make things right,” said the company’s CEO.
EOBI Director General Investments Muhammad Riazuddin spoke to the channel about the status of current investments being made, despite a case having been registered in the Supreme Court.
“The projects are already delayed for two years, we can’t stop them now,” said Riazuddin.
It has been speculated that EOBI may lose Rs 80 million of workers’ pensions, which they invested in failed construction projects.
The official liable for investment of funds in fake projects are to be punished alongwith facilitators .
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