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Bhutto's husband refuses to
travel to Switzerland for corruption investigation. The husband of
ex-Prime Minister Benazir Bhutto said poor health will prevent him from
accepting a temporary release from a Pakistani prison to answer questions in
Pakistan: Musharraf asks foreign banks to return Pakistan's looted
wealth. Pakistan’s President
Pervez Musharraf have urged foreign banks to return billions of dollars he
said had been stolen by the Islamic republic's former "corrupt"
leaders. Musharraf said that
"The biggest chunk of corruption in Corruption is country’s real problem: Bhutto. .According to reports, former Prime
Minister Benazir Bhutto has said that the real issue in
DONORS
satisfied with government progress. The
International Financial Institutions, including the World Bank, the
International Monetary Fund and the Asian Development Bank, have noted the
government’s reforms during the last three years and have promised their full
support in combating corruption. World Bank CORRUPTION TARGETED IN PAKISTAN Under the assistance of Transparency International (TI), a conference aimed at finding ways to eliminate culture of bribes in the public and private sector was held in Islamabad yesterday, raising hope of a harder crackdown on corruption in the country. According to Shaukat Omari, member of the global anti-corruption campaign TI, Pakistan should change its laws to sort out this problem however, the Pakistan leaders seems to be really interested in fighting corruption. (BBC News 20 Aug 2003, summarized by Hanh Vu).
Geneva. MONEY LAUNDERING: BENAZIR BHUTTO AND HUSBAND GET
JAIL TERM. Former Pakistani Prime Minister, Benazir Bhutto and her husband,
Asif Zardari have been found guilty of money laundering by a court in
RS.1.19BN EMBEZZLEMENT IN CDA (CAPITAL DEVELOPMENT AUTHORITY) FOUND Rs.1.19bn. embezzlement in the capital Development Authority (CDA) during the last two fiscal years 1998-99 and 1999-2000 has been unearthed by an inquiry report of the Interior Ministry. According to sources several corrupt officers of CDA started to change the inquiry reports after the announcement by the Interior Minister Faisal Saleh Hayat to hold inquiry into the embezzlement and corruption in CDA. The national Accountablilty Bureau (NAB) founded to investigate into corruption, has started inquiry after receiving evidence of illegal payment of about 100m. rupees. NAB has already arrested two high officials including Secretary Board Abdul Ghafoor Doger and Director Planning Muhammad Iqbal in March. (Paknews 15 Jul 2003, summarized by Hanh Vu).
FORMER PAK [CRICKET] CAPTAIN HELD
ON CORRUPTION CHARGES. The National Accountability Bureau has arrested Pakistan's
former cricket captain and senior bureaucrat Javed Burki for corruption. The
officials nabbed the 64-year-old Burki, who headed the Pakistan Automobile
Corporation until 1998, at his residence in Islamabad. The veteran cricketer
created the Trans Mobile Company, which entered into a shady deal with the
defense ministry to make Yasoob trucks for the army. (The Times of India,
December 19, 2002, Summary by Eliza Villarino). Muslim League official REFUTES claim oF corruption eradication. Secretary General Pakistan Muslim League (N) Saranjum Khan has refuted official claim that corruption has been totally eradicated. In a statement issued by PML leader said President General Pervez Musharraf’s remarks during his meeting with the members of the ad-hoc Public Accounts Committee were false on the both the counts. Khan said that the arbitrary nature of the General’s governance has promoted corrupt practices in all his public-dealing departments including police, irrigation and revenue departments while his administrators actively supported and ensured victory of corrupt politicians and plunderers in the October 10 polls. Saranjum Khan also disputed General Musharraf ’s claim that his government observed rule of merit in all its decisions. (Pakistan News, October 23, 2002, summary by Sherldine Tomlinson)
politicians pledge to combat corruption A military ruler General Pervez Musharraf, who seized power in a bloodless coup in 1999, vowed at a conference hosted by Transparency International, a global anti-corruption group, to take measures to stamp out corruption. In a speech, Musharraf repeated past charges that widespread corruption involving top politicians; generals, businessmen and bureaucrats had virtually bled the country dry in the past. In the pledge, the political parties committed themselves to adopting and implementing an effective anti-corruption reform program that would strengthen accountability and transparency in government affairs. However, several political parties, including former Prime Minister Benazir Bhutto’s Pakistan Peoples Party (PPP), stayed away from the conference and did not sign the pledge. Musharraf accuses Bhutto and another former prime minister, Nawaz Sharif, of corruption and has vowed to block their attempts to return to power. (MSNBC News, September 18, 2002, summary by Sherldine Tomlinson).
BHUTTO'S HUSBAND CONVICTED OF
GRAFT. A
Pakistani court has sentenced convicted ex-Prime Minister Benazir Bhutto's
husband to seven years in prison following a guilty verdict on graft charges.
The court also ordered Asif Ali Zardari, who was found guilty of collecting
kickbacks from the state-run Pakistan Steel Mills during his wife's reign as
prime minister, to pay a fine of $666,600. Zardari is currently is jail
pending trial of several other corruption cases against him. (Associated
Press, September 13, 2002, Summary by Eliza Villarino). ACCOUNTABILITY COURT CONVICTS
LEHRI, ANWAR ON CORRUPTION CHARGES. The Accountability Court No. II in Quetta
has handed a guilty verdict on charges of corruption to ex-Mayor Quetta
Municipal Corporation Mir Maqbool Lehri, who will have to serve three years
of Rigorous Imprisonment and pay a fine of Rs 2.5 million. The ruling also
means the defendant's disqualification from holding any public office and
ineligibility to secure loan from any state controlled DFI for the next ten
years. The same Court also convicted co-accused Haji Muhammad Anwar Khan,
Contractor QMC for corruption and multiplication of properties/assets beyond
sources of income, ordering him to three years of RI and pay fine of Rs.
10.35 million including interest of 13 per annum per annum beginning on the
date of drawl of amount until its realization. (The Frontier Post, September
2, 2002, Summary by Eliza Villarino). ACE RECOVERS RS 147M FROM 2209
CORRUPT OFFICIALS. In less than three years, the Punjab
Anti-Corruption Establishment was able to recover Rs. 147 million from 2209
officers and officials of various provincial departments, who were arrested
for corruption and other irregularities. ACE Punjab Director Retired
Colonel Tarik Saadat reported that the amount was recouped during 290 trap
raids and investigations between January 2000 and July 2002. He said that of the
total number of nabbed officials, 228 were gazetted officers of several
departments. (Paknews.com, August 26, 2002, Summary by Eliza Villarino). EX-OFFICIAL HELD ON CORRUPTION CHARGES Syed Mujahid Hussain Naqvi, a former secretary to the Azad Kashmir government, who was demoted and dismissed from service and now is practicing law in AJK's superior courts, was arrested by police near the Supreme Court's circuit bench in Mirpur for his alleged involvement in corruption. Allegedly, the main charges were of tampering with service record to get undue promotions, embezzlement in the purchase of five fax machines and obtaining Rs 290,000 from the Zakat profit fund for medical treatment in a foreign country of his mother, who was never taken there. Another charge against him was raising properties incompatible with his known sources of income. (Dawn, Aug. 07, 2002, summary by Hanh Vu).
RS 31.2M RECOVERED FROM CORRUPT Rs 31.2 million have been recovered within short span of 5 months of the year 2002. 757 officials and officers of different provincial departments including revenue, police, education, health, local government, C and W irrigation and others were apprehended after the charges were proved against them. According to Director Anti-Corruption Col (Retd) Tarik Saadat, the AC Courts had so far decided 260 cases, out of which 225 persons were acquitted and 35 officials were convicted. (The Frontier Post, July 30, 2002, summary by Hanh Vu).
GOVERNMENT TIGHTENS UP ON TERROR MONEY Pakistan
is to announce new rules on regulation of foreign currency dealers in an
attempt to curb money laundering. The central bank governor said the rules
would require moneychangers to become tightly regulated foreign exchange
companies within two years. For the
first time, Pakistan would allow commercial banks to open foreign currency
dealing outlets. The new regulations are part of a drive to regulate the
daily business of Pakistan’s foreign currency dealers, suspected by western
officials of being an avenue for money laundering. There are also fears that
unregulated foreign exchange businesses may be used for the financing of
terrorist groups. "We are now creating the infrastructure to prevent
money laundering," said Ishrat Hussain, the central bank governor. " (Financial Times, June 29, 2002, summary by Sherldine Tomlinson). ANTI-CORRUPTION STRATEGY BEFORE SEPTEMBER. According to reports a National Anti-Corruption Strategy (NACS) in Pakistan is being formulated. The chairman of the National Accountability Bureau (NAB) Lt-Gen Muneer Hafeez said that the NACS would give clear picture in as the government wanted to retain the process of accountability on a permanent basis. In addition, when asked if the NAB was taking up the issue regarding irregularities in defense deals as appeared in a section of the press in reference with the auditor-general's reports, Hafeez said that the NAB had not been handed over any such case. The International News (Pakistan), June 9, 2002, summary by Sherldine Tomlinson). ISLAMABAD: SAARC CALLS FOR STEPS AGAINST CORRUPTION The third meeting of the finance and planning ministers of SAARC nations ended here on Tuesday April 9, 2002 after adopting a "Plan of Action" that seeks to remove corruption, promote good governance, ensure transparent use of funds, improve procurement processes and better the police and judicial systems for alleviating poverty from the region. (Source: Dawn, The Internet Edition, April 10, 2002, Summary by: Shatarupa Chaki). JUDICIAL CORRUPTION. www.hrcp-web.org
is Lahore-based human rights group. It has an sophisticated web page and it
notes besides human rights, the issue of corruption and how anti-terrorism
has not been honestly pursued.(NY Times, March 29, 2002) NATIONAL ACCOUNTABILITY BUREAU TO START ACTION AGAINST POLITICIANS. The National Accountability Bureau of Pakistan (NAB) has the task to bring action against corrupt politicians and bureaucrats. Nevertheless, NAB used to avoid action against politicians; the reason was thought to be the necessity for "negotiations" with political parties. Now, some sources within NAB insist that "allies of the regime" have been identified among politicians and that a "go ahead" has been given to act under law against those who are not on this list. (Gulf News, 21 March, 2002, summary by Pavlidis George).
MUSHARRAF’S CORRUPTION CRACKDOWN ‘FAILING’ According to Farhan Bokhari of the Financial Times "most businessmen now believe the commitment to attack corruption has become weaker." "The view is that if you are corrupt and give up part of the wealth that you earned from corruption you get away scot free." The regime does have reasons to protect the corrupt. In the first place senior officers are reluctant to see their colleagues go to jail. Secondly, the threat of corruption charges enables the army to control the civilian politicians ahead of this year's promised elections. Gen. Musharraf has said that he will remain President after the elections. He wants to prevent the politicians from demanding too big a share in power. And some politicians who have already accommodated themselves to the military regime have had their corruption cases dropped. (Source: BBC News, South Asia, January 23, 2002, Author: Owen Bennett Jones, Summary by: Shatarupa Chaki).
ARRESTS TOP OPPOSITION LEADER ON RETUREN FROM ABROAD Mohammed Shafique, Regional Accountability Board spokesman, announced the arrest of Aftab Sher Pao, senior opposition leader and former chief minister of North West Frontier Province, on corruption charges. General Pervez Musharraf, President, plans to hold dozens of corrupt politicians, businessmen, and government officials accountable until the wealth they plundered is recovered. (AP Worldstream, Jan. 6, 2002, summary by Marg Reynolds).
Rawalpindi,
COURT ADJOURNS WATTOO CASE. The National Accountability Bureau of Pakistan
(NAB) had alleged that Manzoor Wattoo, former Punjab chief minister, was
involved in the misappropriation of funds in the purchase of an aircraft for
the government during his tenure. The Accountability Court No I headed by
Judge Rustam Ali Malik adjourned the hearing of the corruption reference
after having recorded the statement of the Chief Pilot, Punjab government,
Col Saleem, who appeared as prosecution witness. An accountability court of
Lahore has already convicted Wattoo, who is now serving his sentence in a
Lahore jail. (Source: Dawn -APP, November 14, 2001, summary by Pavlidis
George).
SWITZERLAND TO PROVIDE LEGAL HELP IN BENAZIR BHUTTO'S CASE. The former of Pakistan, Benazir Bhutto, has already been found guilty of corruption in two Pakistani trials. Pakistan authorities have asked legal help from the Swiss authorities, especially in being provided with banking documents of "off-shore" companies linked to Benazir and her family. Switzerland has already given Pakistan other documents for use in the case against Benazir Bhutto. In its reasoning, the Swiss Supreme Court rejected arguments from the companies that the Bhutto family was unable to obtain a fair trial in Pakistan because of the government installed in a 1999 military coup. (Source: The Daily Star-Bangladesh, November 7, 2001, summary by Pavlidis George). NATIONAL
ACCOUNTABILITY BUREAU ARRESTS THE FORMER SDPO OF BUREWALA. The National
Accountability Bureau arrested Mr. Jahang Khan, former SDPO of Burewala and a
Police Department recruit of 1966, on Monday. He is alleged to have acquired
assets disproportionate to his income, including 16 squares of agricultural
land and a house, on his name, on those of his dependants and even banami
names. (Dawn, November 6, 2001, summary by Aruna Balakrishnan).
PROMINENT
MUSLIM LEAGUE POLITICAL LEADER ARRESTED ON OSTENSIBLE CORRUPTION CHARGES.
Mukhdoom Javed Hashmi, the acting President of the now ousted Nawaz Sharif’s
Muslim League party was arrested today on charges of acquiring assets beyond
the known sources of his income. Despite the fact that Pakistani authorities
have been investigating him for months on corruption charges, the timing of the
arrest has been linked to the explosive political situation in Pakistan with
military leader Gen. Musharraf’s pro-US policies alienating most of the
Islamic parties, leading to widespread protests. While Gen. Musharraf has
been fervently trying to muster support of certain secular parties, it was
only yesterday that the Muslim League, so far neutral, finally took a stance
on supporting the strike called by religious parties for next week. Hashmi’s arrest within hours of this
announcement has been linked to the arrest of two other heads of Islamic
parties, in consonance with the military leadership’s stance of sidelining
all political parties and allowing only military and non- political civilians
to take charge, particularly in the wake of trying to curtail the current
anti- government protests. (The Guardian, November 1, 2001, summary by Aruna
Balakrishnan) .
5- YEAR RIGOUROUS IMPRISONMENT TERM FOR EX- DIRECTOR OF KARACHI DEVELOPMENT AUTHORITY. Mirza Zahid Amin, who served as Assistant Director, from 1987- 2000 at the Karachi Development Authority was sentenced by an accountability court to 5 years rigorous imprisonment on charges of corruption in amassing assets and properties in his wife’s name through illegal means. Investigations followed suspicions of wealth disproportionate to income, when it was found that he drew a total salary of Rs. 9,65,812, but owned assets for more than Rs. 6.6 million. His assets and accounts have been confiscated, and he has been directed to pay a fine of five million rupees, failing which he would get an additional term of two and a half years. He has been banned from holding public office for 10 years and the court has ruled that he shall not be given any financial facility by Government controlled banks and lending institutions. (Dawn, October 19, 2001, summary by Aruna Balakrishnan).
FIVE OFFICIALS SUSPENDED AND SIX CHARGE SHEETED FOR EMBEZZELMENT IN THE CAPITAL DEVELOPMENT AUTHORITY. Two major corruption cases worth millions of rupees, in the Capital Development Authority (CDA) have been exposed by the National Accountability Bureau (NAB), which recommended the suspension of the five officials concerned- a deputy director, Muhammad Khan, three assistant directors, Javed Saleem, Muhammad Aslam and Ghulam Mustafa and an accounts officer, Ayaz Khan. The case involved the project of electrification of the luxurious parliament lodges which were intended to be used to provide accommodation for Heads of States visiting Pakistan for a summit. Investigations revealed that these officials misappropriated millions of rupees by using sub standard materials in the project. In another case involving the development of the Sector I- 14, six officials including Shafaat, Ikramullah and Sikandar Abbasi have been charge sheeted for embezzlement of funds, since the project was approved in 1994-95 but never commissioned. Sources divulged that the cost of the development project has since escalated by 30%. (Dawn, October 1, 2001, summary by Aruna Balakrishnan).
COOPERATIVES SCAM
VICTIMS ASSURED OF REFUND OF THEIR MONEY. The Corps Commander, Multan, Lieutent-General Syed Muhammad Amjad,
said that every single penny, looted by the co-operative societies would be
recovered and given to the victims. He was speaking at the cheques
distribution ceremony held to give cheques to over 400 co-operatives scandal
affectees of south Punjab. During the next two years, four billion
rupees would be distributed among the victims.(Business Recorder, August 12,
2001, summary by Barbara Gray). INFORMATION DEPARTMENT
OFFICIAL FORCED TO RETIRE. Director
Advertisement of Sindh Information Department (ID), Syed Safdar Eli Shah has
been forced to retire on charges of corruption, embezzlement of public
money and manipulation of official records to hide his crimes. Safdar
Ali Shah, along with three officials of ID was found guilty of overpaying
millions of rupees to certain dummy newspapers in 1994. The record was
found manipulated to hide Rs seven million embezzled by Syed Safdar Ali
Shah. (Business Recorder, August 7, 2001, summary by Barbara Gray). CHANGES IN NATIONAL ACCOUNTABILITY BUREAU LAW The National Accountability Bureau has suggested changes un the NAB ordinance and submitted draft amendments to the federal government so that it would fulfill the directives of the Supreme Court judgment. The NAB chairman has said that the amendments would aid in combating economic crimes and assist the procurement of corruption evidence from abroad. The details of the amendments have not been specified but it has been denied that one of them has been drafted principally with reference to the SGS case. The NAB has focused their accountability process on the cases in government departments and financial institutions and is eager to punish corrupters and recover looted wealth. (Dawn, July 31, 2001, summary by Kelli Johnston).
REVENUE BOARD ADMITS FLAWS IN SYSTEM Factors responsible for poor revenue performance over the years has been attributed the Central Board of Revenue’s unfriendly tax administration, complex tax laws, and corrupt revenue machinery. With this in mind, the Task Force on tax administration has advocated reform of the existing tax administration to make it more efficient, customer friendly and less corrupt. Amongst the committee’s recommendations was maximum autonomy to the tax administration; separate tax assessment and adjudication; revise recruitment, training, compensation, evaluation and promotion systems, improve organization design, etc. (Dawn, July 30, 2001, summary by Kelli Johnston). PATWARI
ARRESTED RED-HANDED. Anti-corruption police arrested Patwari Mushtaq Ali Shah
red handed accepting Rs. 4000 illegal gratification . (The Pakistan Newswire,
July 11,2001, summary by Barbara Gray).
CORRUPTION RULES IN INDIAN SUBCONTINENT India and Pakistan have been placed on the primary concern list of 175 countries hit by money laundering that is estimated by the IMF to be $1.5 trillion per year through the world’s financial system. Globalization has resulted in flight of capital from periphery countries to world financial centers; from poor, developing states to rich, developed states; and Islamabad is making a bid to reverse the trend by offering incentives. U.K. and U.S. politicians have expressed dissatisfaction over their countries' efforts to tackle money laundering, which U.S. experts claim distorts business decisions, increases the risk of bank failures, and takes control of the economy away from the government. (The Earth Times, June 14, 2001, summary by Marg Reynolds).
FORMER SPEAKER OF NATIONAL ASSEMBLY INDICTED Yousaf Raza Gilani, former National Assembly Speaker, has been charged with corruption and misuse of power at a huge cost to the national exchequer as millions of rupees have been spent on personal items including ten luxury cars, furnishings for three hostels, and maintaining seven telephones. (Dawn, June 13, 2001, summary by Marg Reynolds).
PAKISTAN ASKS FOR HELP TO FIGHT CORRUPTION Abdul Sattar, Foreign Minister, believes the scourge of corruption is equivalent to drug trafficking or terrorism and that the economic strain placed on his country by the debts amassed by Bhutto and Sharif in the 1990’s amount to 55 percent of government revenues. Further, he has requested international assistance to lift bank secrecy laws in offshore financial havens for General Pervez Musharraf’s government to track money transfers. He rejected criticisms from the U.K. and others that Pakistan was aiding Afghanistan’s Taliban regime. Dialogue and co-existence with the destroyed Kashmir state, Pakistan, as well as India, will set in motion a resolution process, as four million people in Adghanistan would die without the World Food Program. (FT, June 13, 2001, summary by Marg Reynolds).
Auduitors from Asian Development Bank investigate billion in misspent project funds. A corruption and fraud detection unit is investigating corruption allegations raised by an Asian Development Bank auditing team in which almost Rs. 8 billion was declared ‘ineligible expenditure’ in the execution of the SAP-II program. (PAK News, June 11, 2001, summary by Marg Reynolds).
FORMER PRIME MINISTER BHUTTO SENTENCED TO PRISON TERM Judge Rustum Ali Malik has sentenced Benazir Bhutto, former Prime Minister, in absentia to three years in prison after Bhutto repeatedly ignored court notices. She was accused of illegally amassing properties and overseas bank accounts. General Pervez Musharraf, military ruler, stated the rulers of the 1990’s, Benazir Bhutto and Nawaz Sharif, will not be placed in future governments as both were twice dismissed from power on corruption charges. (Court TV Trial Report (AP), June 9, 2001, summary by Marg Reynolds).
SECURITIES REGULATION OFFICIAL HELD IN STOCK SCAM Tariq Iqbal Khan, commissioner of the Securities and Exchange Commission, was arrested for a Rs 6.2 million scam involving Shaz Investment Company, founded by Tariq Iqbal in 1996 when he was Islamabad Stock Exchange President. Also named in the claims that are yet to be verified are Muhammad Sagheer, Shaz Director and Chief Executive; Tariq Iqbal, former Shaz Chairman; and Ziauddin Akbar, father of a Shaz director. Tariq Iqbal’s lawyers have stated Islamabad police high-handedly disregarded normal legal procedures and raided his house without any investigation. (Business Recorder, May 31, 2001, summary by Marg Reynolds).
Rawalpindi, MUSHARRAF WARNS BHUTTO. The military ruler of Pakistan signaled in a Guardian interview that he is staying put, "in or out of uniform." General Pervez Musharraf, 57, the Pakistan's dictator, gave his strongest signal yet that he has no intention of giving up power. He also warned that the former Prime Minister Benazir Bhutto would be arrested if she ever returns home. "Legal action will be taken against her, certainly. She is accountable to this nation for her misdeeds," he declared. General Musharraf accused Ms Bhutto of "mismanaging" and "corrupting" the country. "She has been prime minister twice. I would like to ask her, has this nation ever given so much opportunity to anybody and that person failed twice and yet tries to come a third time?" (Source: The Guardian, May 16, 2001, summary by Pavlidis George).
‘PERPETUAL ARREST WARRANTS’ ISSUED FOR FORMER PRIME MINISTER BHUTTO Rustam Ali Malik, Accountability Court Judge, announced the issue of ‘perpetual arrest warrants’ for Benazir Bhutto, former Prime Minister, for failing to appear to answer corruption charges of six warrants previously issued. Bhutto was twice elected and twice dismissed as Prime Minister for misrule and corruption. Bhutto’s Pakistan People’s Party believes the decision to be ‘an abuse of judicial process’ as she was not served with rogatory letters as required by international law. (Sunday Observer, May 13, 2001, summary by Marg Reynolds).
ANTI-CORRUPTION LAWS MODIFIED BUT STILL DRACONIAN TO SOME. Raja Muhammad Bashir, Prosecutor General of the Accountability Bureau, believes the Supreme Court’s decision not to strike the parts of the National Accountability Bureau Ordinance of General Pervez Musharraf’s military government has allowed the law to survive with its basic framework intact. Criticisms have been leveled at the following amendments: 1. Detention of people for 90 days without charges has been amended to 15 days without charges, that can be repeatedly renewed; 2. No provision for bail has been amended to right to bail if granted by a higher court; and 3. Burden of proof on the accused has remained, as the Supreme Court believes this is a fair system if used with ‘uniform application’. General Musharraf can claim the matter has been reviewed by a free and independent judiciary and the accountability process will go full speed ahead. (NYT, Apr 26, 2001, summary by Marg Reynolds).
STEEL OFFICIAL INDICTED ON CORRUPTION CHARGES Mr. Hissamuddin, Deputy General manager of Marketing at Pakistan Steel Mills, has been indicted by Judge Said Maroof Khan for corruption and accumulation of wealth beyond known sources. NAB has filed a reference of Rs. 190 million against the accused after expiry of 85 days remand. The accused pleaded not guilty. (Business Recorder, Apr 25, 2001, summary by Marg Reynolds).
WORLD FOOD PROGRAM AID WORTH MILLION EMBEZZLED An audit by the Prime Minister’s Inspection team revealed that no record of World Food Program items was shown to the audit team during the years 1992-98 and 1999-2000. Also, no internal checks were completed. Food items meant for free distribution in Muzaffarabad district were embezzled and sold in the open market. A request by the health secretariat for actions to be taken against the culprits has been returned twice by the Ehtesab Bureau. (Dawn, Apr 13, 2001, summary by Marg Reynolds).
COURT HEARS PETITIONS AGAINST ACCOUNTABILITY LAW A total of fifteen identical petitions will be heard by a five-member Supreme Court headed by Chief Justice Irshad Hasan Khan, which will challenge the controversial accountability law. The law gives massive judicial powers to investigators of the government’s National Accountability Bureau, which is accused by some of the petitioners of denying fair opportunity to the accused to defend themselves. However, the Bureau has recovered millions of rupees and convicted several former lawmakers and ministers who stole the money. (Yahoo News (AP), Apr 9, 2001, summary by Marg Reynolds).
RETRIAL OF PRIME MINISTER BHUTTO ORDERED, CORRUPTION CHARGES SUSPENDED The Supreme Court has ordered a retrial of Benazir Bhutto, former Prime Minister, after presentation of transcripts of a telephone conversation in which a judge in the original corruption hearing and a rival member of government, Nawaz Sharif, decided the verdict before the end of the trial. (AOL News (ABC), Apr 5, 2001, summary by Marg Reynolds).
GOVERNMENT WITHDRAWS CORRUPTION CASES AGAINST POWER COMPANY. The government has granted legal status to a revised power tariff deal with Hub Power Co., which will effectively cut power charges. Deposed Prime Minister Nawaz Sharif disputed Hubco’s pricing and it has been alleged that the company also colluded with the government of Benazir Bhutto, former prime minister. (Yahoo News, Mar. 29, 2001, summary by Marg Reynolds).
BHUTTO’S FATHER-IN-LAW SENTENCED TO 18 MONTHS Hakim Ali Zardari, father-in-law to Benazir Bhutto, was sentenced to eighteen months in prison for corruption charges relating to his using influence in seeking a large loan while Ms. Bhutto was prime minister. Ms. Bhutto was sentenced to five years in prison and disqualified from public office for seven years on corruption charges. It is claimed that senior officials influenced the judge who sentenced Ms. Bhutto. (FT, Mar. 27, 2001, summary by Marg Reynolds).
ELIMINATE CORRUPTION, GET RESULTS FROM INTERNATIONALLY FINANCED PROJECTS SAYS REPORTS Poor choices in Social Action Program (SAP-1) projects have been identified by the Debt Reduction Management Committee (DRMC) in the areas of primary eduction, basic health care, population welfare, and rural water supply and sanitation. Flaws indicated in SAP-1 were non-involvement of local communities, NGO’s, and the private sector together with donor financing being hampered by bureaucratic procedures and delays. SAP-1 was comprised of Rs. 608 billion, the government share was 75 percent and the donor share was 25 percent. SAP-II, launched in January 1997, will cost Rs. 499 billion, Rs. 101 billion of which will come from the international community. (Dawn, Mar. 26, 2001, summary by Marg Reynolds).
Islamabad, LAWYERS ASK COURT TO THROW OUT ACCOUNTABILITY
LAW. "The Accountability Law goes against the
Constitution, divides society and shakes public
confidence in the judiciary", argued Mr. Abdul Hafeez Pirzada before
the
five member-bench of the Supreme Court. Mr. Abdul Hafeez Pirzada is one
of
the lawyers who try to have the harsh anti-corruption law thrown out. It
was
the military government that enacted the aforementioned law, when it
took
power in October 1999. According to the lawyers, the provisions of the
law
are discriminatory and they violate fundamental human rights, since they
put
the burden of proof of guilt on the accused. They, thus, establish a
principle
of "guilty unless proven innocent." Both former Prime
Minister Nawaz Sharif, and the ousted premier Benazir Bhutto's
Pakistan Peoples' Party have also challenged the
constitutionality of the new law. (Source: The
Times of India, April 11, 2001, summary by Pavlidis George). EX-DEPUTY COMMISSIONER CONVICTED OF CORRUPTION Qazi Siraj, former deputy commissioner of Lasbela, was sentenced to two years rigorous imprisonment and a Rs.5,00,000 fine by Judge Nadir Khan Durrani for his part in embezzlement of funds for purchasing land for the proposed Pakistan-Iran Oil Refinery. He has also been disqualified from holding public office for ten years. Siraj fraudulently received Rs.16,00,000 for his personal benefit, which is included in the Rs. 29.25 loss to the state exchequer. Also charged in this case are Ainuddin Siddique and Qasim Lasi, both of whom entered into a plea bargain and been released on bail; and Afzal Ekramuddin and Jehan Tab, both of whom absconded and were declared proclaimed offenders. (Dawn.com, Mar. 21, 2001, summary by Marg Reynolds). Islamabad, GOVERNMENT DENIES MANIPULATING BHUTTO'S TRIAL. The
military-led government of Pakistan denied
allegations that the trial of former Prime Minister
Benazir Bhutto was manipulated to ensure a guilty verdict and to disqualify
her from holding public office. Bhutto lives now in self-imposed exile
in the United Arab Emirates after she and her jailed husband Asif Ali
Zardari
were found guilty of corruption by the High Court in April 1999. Bhutto's
lawyers say that Nawaz Sharif's government pressured a high-court
judge
to guarantee a guilty verdict and they presented as evidence tapes of
conversations
between Sharif's top aides and the judge that were allegedly recorded
by a Pakistani intelligence agency. (Source: The Times of India-AP,
March
13, 2001, summary by Pavlidis George).
ACCOUNTABILITY BUREAU ARRESTS BUREAUCRAT ON CORRUPTION CHARGES Maj. (R) Ahmed Nawaz Shinwari, chairman of the Sarhad Development Authority was arrested on corruption charges and remanded for 45 days by Judge Miftahudin. The National Accountability Bureau alleged the official had misused authority and had acquired movable and immovable properties totally disproportionate to his income. (Dawn, The Internet Edition, Feb. 25, 2001, summary by Marg Reynolds).
PRIME MINISTER CHALLENGES CORRUPTION VERDICT Former Prime Minister Benazir Bhutto and her imprisoned husband, Asif Zardari, have appealed to the Supreme Court against their conviction of corruption in misusing their authority to award a multi-million dollar contract to a Swiss firm. The decision of the Court to reject the appeal would end Benazir Bhutto’s political career for the near term as she has been banned from holding office for seven years. However, if the Court retries the case she may return to the country from exile. One of the court trial judges is presently being investigated regarding a taped conversation with two senior members of the previous government of Nawaz Sharif, which would establish the original trial was subject to government influence. (NYT, Mar. 3, 2001, summary by Marg Reynolds).
SUPREME COURT TAKES UP KEY BHUTTO APPEAL The lawyers of Benazir Bhutto have urged Presiding Judge, Bashir Jehanqiri and the Supreme Court to call up tapes of a conversation between one of the two trial judges in her original case of 1990, and senior aides of then-Prime Minister, Nawaz Sharif. The tape records urging the trial judge to quickly convict Bhutto and also records the discussion of the time and the sentence. Ms. Bhutto and her husband, Asif Ali Zardari were sentenced to five years in prison, disqualified from public office for five years, and fined $8.6 million. The couple has repeatedly protested their innocence of receiving kickbacks for hiring Societe Generale de Surveillance of Switzerland to eliminate tax fraud. (Yahoo News, Reuters, Feb. 26, 2001, summary by Marg Reynolds). KARACHI -- The World Bank's Corruption and Fraud Investigation Unit is arriving in Pakistan soon to investigate an alleged $400 million embezzlement in the government's Social Action Program or SAP-II, the Dawn reports. The World Bank team will conduct the investigations in collaboration with Pakistan's National Accountability Bureau and the Auditor General of Pakistan. (D.J. Newswires, Feb. 16, 2001). ISLAMABAD, Arrest of Former Parliamentary Speaker. Yousaf Raza Gilani, former parliamentary speaker, was arrested by Pakistan's military authorities to face corruption allegations including giving jobs to 339 "cronies and favorites," purchasing official vehicles and awarding contracts for the repair of the Islamabad parliament building. Besides any prison term or fine, a conviction means automatic disqualification from holding public office for 21 years. (Reuters, February 10, 2001, summary by Hema Kotecha).
ISLAMABAD, 242 political leaders face corruption charges. National Accountability Bureau is investigating 242 politicians from throughout the country, and from every political party for acts of corruption and misuse of their official position. Included in those under investigation are former prime ministers, chief ministers and federal and provincial ministers. (Dawn, February 12, 2001, summary by Hema Kotecha).
LAHORE, PAKISTANI GOVT ARRESTS PARLIAMENT'S FORMER SPEAKER of the Parliament in Bhutto’s government, Yusuf Raza Gillani, on corruption charges. He allegedly defaulted on repayments of a million dollars worth of bank loans. (Feb. 10, 2001, DJ Newswires).
US HELPS PAKISTAN CORRUPTION PROBE. In an announcement made by the Foreign Minister, Abdul Sattar, the military government in Pakistan has said the United States has given its assurance that it will help in efforts to trace persons accused of corruption. It has also recently been reveled that Pakistan's anti-corruption organization (the National Accountability Bureau) had asked Interpol to track down Admiral Mansurul Haq (a former navy chief) who is believed to be in the United States. According to the prosecutors, it will be soon formally requested the extradition of the admiral. Never before, has the military government targeted such a senior officer on corruption charges (Source: BBC, September 25, 2000, summary by Pavlidis George).
RELIGIOUS LEADER ARRESTED FOR CORRUPTION. Nearly a year ago the military seized power in Pakistan, saying it would get rid of the widespread corruption in this country. Since then, eight provincial ministers have been arrested and three of them convicted for corruption. Sardar Hafeez Looni is a former provincial minister in the Pakistani province of Balochistan. He is a member of the right wing Jamiat Ulema Islam Fazal party and the second religious leader to be arrested in Balochistan. Mr. Looni has been arrested on corruption charges. (Source: BBC, September 26, 2000, summary by Pavlidis George). SUKKUR - Seven officials of the Pakistani Education Department have been removed from their posts after allegations that they embezzled Rs2.7 million from funds and salaries over the past two years. The seven individuals are: SDO Shamshad Shaikh, primary SDO Sanaullah Shaikh, head constable Abdul Rehman Shaikh, headmaster Abdul Khaliq Kalhoro, head clerk Jamal Din Manganhar and clerks Abdullah Burro and Rafiq Shaikh. ( Dawn.com, Dec 21,2000. Summary by Fabian Camacho).
ISLAMABAD, The People's Party of Pakistan has filed a reference
against Finance Minister Shaukat Aziz, National Development Finance
Corporation (NDFC) Chairman Asif Saeed and Arif Zahoor of Zahoor Textiles for
involvement in corruption. The reference states that Mr. Aziz misused his
authority by giving financial benefits to Mr. Saeed who, as the chief of
NDFC, approved working capital for the textiles group to benefit his partner
Arif Zahoor. (Dawn, 06.12.00, summary be Sandra Castro). General Musharraf Pervez has pledged
to eradicate corruption, rebuild Pakistan’s
economy and establish a genuine democracy through a general election due in
late 2002. However the General has been taken to task for pardoning ousted
president Nawaz Sharif and allowing him to flee to Saudi Arabia. Mr Sharif
has been accused of several transgressions, including the misuse of office
for personal benefits. The leader of the right-wing Jamaat-I-Islami party has
said that by allowing Mr Sharif to escape prosecution for his
corruption, a major blow has been dealt to the credibility of the Musharraf
regime, especially with regard to his anti-corruption drives. (Channel News
Asia, 11 December 2000, summary by Lu C.L.). USING THE WEB TO FIGHT CORRUPTION. A
year ago the country's chief executive, General Pervez Musharraf, founded the National
Accountability Bureau, a body that has already recovered $450 million in bribes,
kickbacks, stolen property,
and defaulted loans. The National Accountability Bureau has created a website that asks
Pakistanis to provide information on corrupt politicians, civil servants, and
businessmen. Although there are only about 60 ISPs and some 150,000 Internet users in Pakistan (0.1
percent of the population),
the government is hoping that the ease of use and the element of anonymity of the website will
encourage citizens to report cases of corruption. (Source: TechWeb News, November 28, 2000,
summary by Pavlidis George). Corporate Governance: Wall Street Journal, Nov. 8, 2000 (Front page sec. C) notes that this country is among the lowest ten in corporate governance by CLSA, Salomon Smith Barney. This means that shareholders do not get equitable treatment and disclosed information can be false and misleading. The laws governing duties of managers, accountants, etc. are inadequate or not enforced properly. LAHORE - National Accountability Bureau (NAB) prosecutor-general Farooq Adam told reporters yesterday that he has not found any conclusive evidence of corruption among army officials, despite widespread allegations of military misconduct and several unsubstantiated charges against top generals. He also mentioned that the United States has asked for the extradition of a “Big Shot”, though he declined to give the name of the individual being sought. (Gulf News, October 19,2000 Summary by Fabian Camacho). NATIONAL
ACCOUNTABILITY BUREAU REFERRED 167 CASES TO ACCOUNTABILITY COURTS DURING ONE
YEAR. During the past one year, the National Accountability Bureau has
referred 167 cases of corruption and loan default to accountability courts
across Pakistan. Highly influential people including former Prime Ministers,
former Chief Ministers, ex-ministers at federal and provincial level,
politicians, bureaucrats, ex- servicemen, and various other segments of
society, have been nominated In these over 400 cases. (Business Recorder, 13
October 2000, summary by Debbie Uy).
LAHORE- Deposed prime minister Nawaz Sharif has accused the Pakistani military of engaging in corrupt practices. He alleges that army officials have assets way beyond their salary range that there have been kickbacks on defense deals, and that politicians have tried to cover up the army’s irregularities in order to preserve its image. (The Times India Online, September 21,2000. Summary by Fabian Camacho).
United Nations Millennium Summit: Pakistani President
Calls For Help To Trace And Repatriate Illicit Wealth In Secret
Accounts. At the UN Millenium summit,
Pakastani President asked that the UN ban the transfer of falsely attained
wealth, demand that there be a joint effort in tracing these funds, and
return them to their country of origin.
He also stated that Pakistan continues to work for a just and
effective UN.(UN Press Release, September 6, 2000, summary by Amanda Glatzel) GOVERNMENT
ENACTS LAW TO SACK CORRUPT OFFICIALS Sindh Governor Muhammadmian Soomro issued
an ordinance on August 30, granting special powers to the competent authority
to clean the administration of those public servants who are inefficient,
guilty of misconduct or who have a reputation for indulging in corruption.
These powers would be over and above the Sindh Civil Servants Act 1973. The
ordinance, to be named the "Removal from Service (Special Powers) Sindh
Ordinance 2000" would also be applicable to those appointed or promoted
on extraneous grounds, in violation of law and relevant rules. Dawn, August
31, 2000 http://www.dawn.com
Kenya--Petty politicking hampers athletes--A series of unseemly selection squabbles, personality clashes and dirty tricks allegations have seen some of Kenya's top athletes spend more time limbering up for legal suits than for the Games themselves. It left a sour taste in the Olympic squad as it touched down in Adelaide last Thursday. The final ignominy came last December when the league winners, Mumias Sugar, were stripped of their Premier League title. They were found to have bribed another team, the Kisumu All-Stars with 40,000 shillings [£353] to allow them win the league clincher – by the immodest margin of 10 goals. (By Declan Walsh, Nairobi, The Independent (UK), August 14, 2000, summary by Rujuta Vinod).
Karachi-- Action against corrupt officials ordered--The Anti-corruption Committee-I, which met here on Saturday last under the chairmanship of Sindh Chief Secretary Muhammad Jawed Ashraf taking serious notice of the malpractice, financial bungling, misuse of power and misappropriation of government funds, decided to register cases, make arrests and prosecute the officials involved in such cases. The Anti-Corruption Chairman briefed the meeting about cases presented before the Committee relating to the various departments, which were discussed, and recommended/approved various actions against defaulting officers/officials including registration of cases, arrests, prosecution and departmental actions against them. (Published under arrangement with Pakistan Press International)(Business Recorder, August 14, 2000, summary by Rujuta Vinod).
Pakistan’s ousted Prime Minister Nawaz Sharif is accused by the new military leader Gen. Pervez Mushrraf of corruption. Former head of civil aviation authority Aminullah Chaudhry has agreed to testify against Nawaz Sharif. (NYT, Nov 25, 1999) Pakistan Leader Promises 100 New Courts to try the corrupt and
those who have delinquent bank loans,
Associate Press, Nov. 30, 1999. High Commissioner to UK Akbar Ahmed was accused of
pocketing sums meant for production of film “Jinnah”. He has now slapped a legal notice on the
accuser Jamil Dehlavi, the director of the film. (India Abroad, Mar. 3, 2K,
p. 8). ISLAMABAD (AP)- Poor Governance Crippled Pakistan-A decade of incompetent governments crippled Pakistan's economy, causing a robust 6% annual growth rate to shrink to just 3%, the State Bank of Pakistan Governor Ishrat Hussain said Saturday. While Pakistan made some of the right economic moves during the 1990s, like privatization and deregulation, it lost the financial benefits to corrupt and incompetent governments, explained Hussain. (DJ News, July 15, 2000. Summary by L. Mcpherson) Pakistan:
ISI to probe high-profile corruption cases (Business Recorder, 23.8.00, http://www.brecorder.com/story/S00DD/SDH23/SDH23105.htm) KARACHI (August 23) : The government has set up
a special cell in intelligence agency ISI to investigate major cases of
corruption, sources in the National Accountability Bureau (NAB) say. Named
the "NAB Cell," it is headed by General M Iqbal and comprises 50
officers of rank of colonel or above, Herald magazine reports. The decision
to hand over investigative work in serious cases to the ISI was taken after
the failure of the civil intelligence agencies including the Federal
Investigation Agency (FIA) to find conclusive evidence in most of the cases that
the NAB has investigated since it came into being, the report said. With the
cell, the NAB job has been reduced to preparing cases and sending them to the
courts, while leaving all investigations to the ISI. The NAB Cell, according
to the sources, will also be assigned the task of probing into various
defense deals in which people have allegedly minted millions of dollars as
commissions and kickbacks. The team of 50 army men is currently undergoing a
three-week training program at the NAB headquarters in Islamabad. Special
detectives from the United States and Britain are training them. The training
includes methods of probing cases of white-collar crimes and detecting money
laundering and corruption.-Internews Copyright 2000 Internews Pakistan:
Musharraf Aacuses UK of harming anti-graft effort (Reuters, 22.8.00, http://live.altavista.com/scripts/editorial.dll?ei=2109182&ern=y) PAKISTAN:
TAX OMBUDSMAN TO TRY CORRUPT EMPLOYEES UNDER NEW ORDINANCE President Mohammad
Rafiq Tarar on Friday promulgated an ordinance, establishing Federal Tax
Ombudsman to hear complaints of corruption and mal-administration by the tax
department. The ordinance called Establishment of Office of Federal Tax
Ombudsman Ordinance 2000, has come into force. The federal tax ombudsman,
appointed by the president, for four years will enjoy vast powers and
resources to investigate any compliant. He would have the powers to summon
any tax official or any other official, in relation to the inquiry before
him. Justice Saleem Akhtar, retired judge of the Supreme Court is likely to
become the first federal tax ombudsman. Federal
minister for finance Shaukat Aziz had announced his name as the first FTO.
Formal notification, however, has not been issued. The law has defined the
word maladministration as: "(1) a decision, process, recommendation, act
of omission, or commission which; a) is contrary to law, rules or regulation
or is a departure from established practice or procedure unless it is bona fide
and for valid reason; b) is perverse, arbitrary, or unreasonable, unjust,
biased, oppressive, or discriminatory; c) is based on irrelevant grounds; d)
involves the exercise of power or failure to do so, for corrupt, or improper,
motives, such bribery, jobbery, favouritism, nepotism, and administrative
excesses" The FTO will have the powers to constitute inspection team
consisting of one or more persons. The inspection team will have the power to
enter into any premises where any article, accountants were suspected to be
lying. The FTO, on a complaint by any aggrieved person or a reference by the
president, the Senate or the national assembly, as the case may be, or on a
motion of the Supreme Court or a high court made during the course of any
proceedings before it or of his own motion, will investigate any allegation
of mal-administration on the part of the revenue division or any tax
employee. The revenue division or any person aggrieved by a recommendation of
the FTO, within 30 days of the recommendation, will be able to make
representation to the president. The law is
silent whether the president would be bound to dispose of the representation.
The FTO, however, will be barred to investigate or inquire into matters,
which are subjudice before a court of competent jurisdiction or tribunal or
board or authority on the date of the receipt of a complaint. He will also
not be able to look into the matters relating to assessment of income or
wealth, determination of law, rules and regulations, relating to such assessment,
determination, classification or valuation in respect of which legal remedies
of appeal, review or revision are available under the relevant legislation.
The FTO will not entertain any complaint for investigation by or on behalf of
a tax employee concerning matters relating to the revenue division in respect
of any personal grievance relating to his service. For carrying out the
objectives of Federal Ombudsman Office, the FTO would be empowered to arrange
for studies to ascertain the causes of corrupt practices and injustice. In
any case where the FTO decided not to conduct an investigation, he would be
required to send to the complainant a statement of his reasons for not
conducting the investigation. If the FTO comes to conclusion that the matter
considered by him amounted to maladministration, he shall communicate his
findings, with a recommendation, to the revenue division within a period of
60 days from the date of receipt of the complaint. The revenue division
shall, within such time as may be specified by the FTO, inform him about the
action taken on his recommendations or the reasons for not complying with the
same. If, after conducting an investigation, it appeared to the FTO that an
injustice had been caused to the person aggrieved in consequence of
maladministration, he will be empowered to lay a special report on the case
before the president. Dawn, August 12, 2000
http://www.dawn.com/2000/08/12/top2.htm PAKISTAN: ACCOUNTABILITY COURT FINDS EX-MINISTER GUILTY OF MISUSE OF OFFICIAL VEHICLES http://support.casals.com/aaaflash1/busca.asp?ID_AAAControl=2943 HiP Nwes, August 18, 2000 http://www.hipakistan.com/htmls/news/news_detail.html#dawn01
PAKISTAN: GOVERNMENT LEADER ACCUSES UK OF HARMING ANTI-GRAFT EFFORT http://support.casals.com/aaaflash1/busca.asp?ID_AAAControl=2974 The Indian Express, August 22, 2000 http://www.expressindia.com The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Pakistan in the “Mostly Unfree” category with a rank of 109 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. ·
Business Recorder
– · Daily Pakistan News - daily http://www.daily-pakistan-news.com/ · Friday Times - weekly paper. http://www.thefridaytimes.com/ · Frontier Post - daily. http://frontierpost.com.pk/ · Hi Pakistan http://www.hipakistan.com/ · Millat Online http://www.millat.com/ · Nation, The - http://www.syberwurx.com/nation/ · Pakistan Today http://www.paktoday.com/
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