The National Accountability Bureau (NAB) has concluded its investigation into a 22-year-old scam involving the purchase of three helicopters that were never delivered.
In 1994, the federal government floated a tender for the purchase of five helicopters for the Intelligence Bureau (IB).
According to the NAB investigation report, a former federal minister, late Malik Allah Yar Khan, pressured the Cabinet Division to award the contract to a bogus firm – M/S Cuxhaven of Denmark – and thereby misappropriated $2.168 million. “The bogus firm was allegedly owned by Zia Pervaiz Hussain, a close relative of Malik Allah Yar Khan,” the report stated.
“They won the tender despite the fact that the rates submitted by the company were not the lowest. Keeping in view the training cost of pilots, M/S Cuxhaven was not the lowest bidder. However, the Cabinet Division officials prepared a comparative statement, saying that the company was lowest bidder by excluding the training cost,” the investigation report said.
A contract agreement was signed with M/S Cuxhaven by the government on June 28, 1994 at the total cost of $4,201,500.
On the invitation of M/S Cuxhaven, an inspection team of Cabinet Division visited the Czech Republic and Russia to inspect the helicopters. After the inspection, the company submitted shipment documents and demanded 90 percent of the purchase amount.
“During the investigation, it was revealed that late Malik Allah Yar Khan maneuvered the contract of five helicopters in favour of M/S Cuxhaven in connivance with his front man, Dr Munir Ahmed Khan, a permanent resident of Denmark and officers of the Cabinet Division. Even before the tender notice was advertised in March, 1994, Malik Allah Yar Khan had told the cabinet secretary that the company should be given the contract,” the report stated.
“Accused Zia Pervaiz (son-in-law of Malik Allah Yar Khan) submitted a bank guarantee of Rs 2.5 million on June 29, 1994 in favour of M/S Cuxhaven and the contract became effective the same day. Another accused Abdul Shafiq, Cabinet Division deputy secretary, got the letter of credit opened through ABL, Cabinet Secretariat Branch for $4.2015 million for the purchase of the helicopters in favour of the company through United Overseas Bank, London on July 11, 1994,” the report stated.
“The first inspection of helicopters was carried out by Lt Col (r) Wakil Afridi and Lt Col (r) MA Wahid during their visit to Czech Republic and Russia from August 23, 1994 to November 11, 1994. Certificates of acceptance were also issued by the above mentioned persons. Similarly, bogus shipment documents (including air way bill) for three helicopters for $2.1681 million (90 payment of their total price) were presented to ABL, London by accused Dr Munir Ahmed Khan through his bank on September 23, 1994,” the documents stated.
“The ABL London Branch paid $2.168 million to the beneficiary’s bank on October 7, 1994. However, the three helicopters did not arrive in Islamabad. According to the airway bill and intimation to National Insurance Corporation, they were supposedly dispatched from Brno, Czech Republic to Islamabad on September 23, 1994. No action was taken by the Cabinet Division to inquire where the consignment had gone for which the government of Pakistan had paid $2.168 million,” the report said.
On February 13, 1998, a complaint had been submitted to the Federal Investigation Agency (FIA) against M/S Cuxhaven of Denmark by Muzaffar Hussain, the Cabinet Division deputy secretary.
After registration of the case, the FIA started its investigation. The case was transferred to NAB on January 29, 2000. During the course of investigation, Malik Allah Yar Khan died on June 27, 2000. The then NAB chairman closed the investigation on July 15, 2004.
However, the case was re-opened and a new investigation officer was appointed on July 8, 2010 on the request of the Cabinet Division.
Talking to Pakistan Today, an official privy to the investigation said that the name of one of the accused – Dr Munir Ahmed Khan – had been placed on Exit Control List. “The pleas of all the accused have been incorporated in investigation report on the basis of their previous statements/joining of investigation. And, the Prosecution Wing of NAB Headquarters has been requested to withdraw closure letter issued to Cabinet Division regarding the case. References may be filed against the accused persons on the basis of the available evidence. Legal heirs of deceased Malik Allah Yar Khan might also be issued notices to obtain their statements regarding property details inherited by them from deceased who had accumulated through corruption and corrupt practices,” the source said.
Moreover, the Cabinet Division might also consider filing a civil suit for the recovery of amount, the official said.
