ISLAMABAD: The military authorities have apparently dumped the Rs2 billion National Logistic Cell (NLC) scam case against the three retired generals as court martial proceedings against them have not commenced a year after they had been recalled into service and taken into custody.
Ironically, the trial of the two civilians in the said case has also been stalled as the entire record of the NLC scam is with the military authorities; it has not been shared with the National Accountability Bureau (NAB).
When PAC discovered the scam
The NLC scam surfaced during the Public Accounts Committee (PAC) proceedings in 2009 when the committee was examining the audit objections raised by the Auditor General of Pakistan (AGP) during the 2004-2008 audit of the NLC.
According to the audit, the administration of the NLC heavily invested in the stock exchange in complete violation of government rules.
They not only borrowed money from commercial banks on high interest rates, but also used pensioners’ money to invest in the stock exchange.
In the process, the audit discovered that they invested over Rs4 billion in the stock exchange and caused a loss of nearly Rs1.8 billion.
When the PAC was apprised of this in 2009, it asked for an inquiry into the issue. The initial inquiry was carried out by a senior military officer in January 2010, formal inquiry was ordered during November 2010 and its report was submitted to the Chief of Army Staff General Ashfaq Parvez Kayani in February 2011.
The formal inquiry report concluded that five ex-employees of the NLC — three retired generals and two civilians — were responsible for the decisions and the losses incurred during 2004-2008.These five men were: two retired Lt-Generals, Khalid Munir Khan and Mohammad Afzal Muzzafar, who served as officers in-charge in the NLC from January 2005 to June 2005 and from June 2005 to October 2008, respectively; Director-General of NLC Maj-Gen (retired) Khalid Zaheer Akhtar (July 2002 to January 2008), Director Finance and Accounts Najibur Rehman (October 2002 to April 2007) and Chief Finance Officer Saeedur Rehman (June 2004 to October 2008).
COAS General Ashfaq Parvez Kayani ordered an inquiry into the matter, the report of which was submitted to him in February 2011.
In September 2011, the military authorities ordered that the evidence be recorded in September 2011 after which the retired generals were supposed to be indicted.
(The recording of the evidence in the Pakistan Army Act is equivalent to the 173 report (Challan) of the Criminal Procedure Code (CrPC) which the civilian prosecution agencies prepare before putting an accused in trial.)
Kayani steps in
In September 2012, the Inter Services Public Relations (ISPR) announced that General Kayani had ordered that the two generals be recalled into service so they could be court martialled for the role they played in this scam.
At that time, the military spokesman claimed that this was the first time that any general was recalled for the disposal of a case.
Under Section 92 of the Pakistan Army Act (PAA) 1952, offences relating to the misappropriation of government property/criminal breach of trust, are not time-bound.
Those who are accused of such crimes can be recalled even after retirement for a court martial.
The same act, however, also sets a deadline of 32 days for trying the accused in a military court.
A soldier turned lawyer Colonel (retired) Sardar Abdul Aziz Chandio said that after recalling the retired generals they (the generals) should have been tried within the prescribed duration.
“It is called ‘taken on strength’ (TOS) when an army person is recalled for the investigation or trial in any matter and kept detained at a designated place,” he said.
He added that the first step after the accused are recalled and detained is the recording of the summary of evidence (S of E) which is similar to the challan (in the criminal procedure code).
At this stage, the initial allegations against the accused are probed and the statements of witnesses as well as of the accused are recorded.
The trial of the accused has to commence within eight days of them having been taken into custody otherwise, the commanding officer of the dealing unit has to explain the delay in a report to the brigade command.
Within the next fortnight, the general officer commanding (Major General) has to submit a similar report to the corps commander.
If the trial is not commenced even after 32 days, the commanding officer submits a report to the Judge Advocate General (JAG) explaining the delay. This is forwarded to the COAS.
The latter can then decide the fate of the accused. He either orders that the proceedings be quashed or directs the unit concerned to put the accused in the trial, said Mr Chandio.
“But in the NLC case the matter is still pending. This inordinate delay is inadmissible under the PAA,” he added.
Dawn has been told that there are certain reasons for the lack of action in this case.
“Since two civilians are also involved in the NLC scam and NAB is examining the matter,” said one observer who has been watching the issue closely, “it would be embarrassing if the generals are given a clean chit and the civilians are later found guilty by an accountability court.”
The Accountability Bureau waits for files
NAB on the other hand is waiting for the military authorities.
A senior NAB official, on the condition of anonymity, told Dawn that the bureau could not proceed against the civilians till it was provided the relevant documents from the NLC.
“NAB had already placed the names of Saeedur Rehman and Najibur Rehman on the ECL a year ago. It had also recorded their statements and is now waiting for the relevant documents and statements of some NLC officials which are currently with the military authorities,” he said.
“NAB officials have met the senior military officials at the General Headquarters in connection with this matter and during a recent meeting they promised to hand over the documents to NAB soon,” he added.
However, some retired military officials are of the opinion that the retired generals should be tried in the accountability court.
Soon after the ISPR announced that the generals were being recalled, Colonel (retired) Inamur Rahim had filed an application before the chairman NAB seeking the trial of the retired general in the accountability court.
In the application he stated that the civilian accused in the matter would get life imprisonment or at least ten years imprisonment if convicted in the NLC scam while the generals might simply have their pension revoked under the PAA.
This is why, Rahim argued, that the retired army generals should be charged and tried along with the civilians NLC officials.
The military spokesman did not comment on this matter when contacted.
‘Delay is normal’
Brigadier (retired) Wasaf Khan Niazi, counsel of retired generals, however said that his clients are still under the ‘open custody’.
He explained that ‘open custody’ is like bail which the civilian courts grant to accused persons being tried for some criminal charge.
He claimed that the investigation in the NLC scam has been carried out in accordance with the law and the matter was pending before the competent authority.
When asked about the ‘inordinate delay’ in the trial of the retired generals, Niazi said in some cases the prosecution took four years to commence the proceedings against the TOS accused persons. However, he did not identify these cases.
Pakistan gets $ 322 million in CSF dues from US
From Web Edition
The remittance by US government would help in the efforts of the government to increase Foreign Exchange reserves.
IP pipeline: Pakistan looks to Gazprom for project financing
By Zafar Bhutta
“Russia may be the best choice for financing and constructing the pipeline,” an official said. Pakistan was willing to accept Gazprom’s offer to build its side of the pipeline, which would cost about $1.5 billion, he added. Gazprom wants its subsidiaries to engage in the project.
Though Pakistan has placed a request before the Iranian government for providing all financing for the construction of the pipeline on its side of the border, government officials believe it will be difficult for Tehran to make a commitment.
“The issue of Gazprom participation in the IP pipeline will feature in a meeting of the Pakistan-Russia joint working group next month,” the official said, pointing out Islamabad and Tehran had been going through the power transition process because of which progress on the project had slowed down.
Pakistan and Iran have to sort out technical issues to pave the way for the award of engineering, procurement and construction (EPC) contract to Iranian firm Tadbir Energy. An agreement in this regard has already been inked and will be formally signed after technical issues are addressed.
The two countries have finalised a $500 million loan deal and a high-level meeting between them is expected to be held soon to discuss the possibility of Iran providing all investment required for the pipeline. Petroleum and Natural Resources Minister, Shahid Khaqan Abbasi, is likely to lead Pakistan’s side in the talks.
A Chinese company, which had offered $500 million for the pipeline, pulled out after Pakistan refused to extend the validity of its bid.
After inviting bids from interested companies, Inter State Gas Systems, a state-owned Chinese company that handles energy import projects, had selected Panyn Chu King Steel Limited of China as a qualified bidder, which would provide pipes at the rate of $1,650 per ton including compressors. The company sought extension in the bid validity period, but the government turned down the request.
“As the Chinese company is no more interested in the venture, the government is now banking on Iran and Russia to fund the laying of gas pipeline in Pakistan,” a source said.
Iran has already committed to providing $500 million to finance the pipeline, but now the government wants Tehran to increase the credit line. Against the financing, Pakistan will award EPC contract to Iran-designated firm Tadbir Energy.
Under the project, Pakistan will import 750 million cubic feet of gas per day (mmcfd), which can be increased to one billion cubic feet. Of the quantity, the Government of Balochistan seeks 250 mmcfd for consumption at the Gwadar Port, therefore, the central government is expected to go for enhanced supplies from Iran to cater to the needs of the province.
Published in The Express Tribune, October 16th, 2013.
Britain opens nuclear market to Chinese investors
UK Finance Minister George Osborne announced Thursday that Chinese companies would potentially be able to acquire majority stakes in new nuclear power projects to be launched in Britain.
He confirmed at the end of a trip to China that the two sides had signed a memorandum of understanding on civil nuclear cooperation.
‘Today is another demonstration of the next big step in the relationship between Britain and China, between the world’s oldest civil nuclear power and the world’s fastest-growing civil nuclear power,’ Osborne said in a statement. The UK’s claim derives from the opening of the world’s first commercial nuclear power facility at Calder Hall in 1956.
Not a one-way street
The minister argued closer bilateral cooperation in the field would lead to more investment and jobs in Britain as well as to lower energy costs for consumers in the long run.
Osborne acknowledged that initial Chinese investments in British nuclear power plants were likely to be minority shares. ‘But over time, stakes in subsequent new power stations could be majority stakes,’ he added.
The memorandum of understanding signed by the two nations also ensures that British companies such as Rolls Royce and International Nuclear Services will be able to get a slice of China’s nuclear program.
According to a UK government release, China currently has 17 operating nuclear reactors, with another 28 under construction.
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