The Security and Exchange Commission of Pakistan (SECP) in its recent audit report shared with NAB has confirmed illegalities of the NLC scam, involving some high military officials and civilians.
According to SECP sources, the report has been forwarded to NAB. However, the NAB is still waiting for official record of the scam from the GHQ to proceed with the inquiry.
In the report it has been highlighted that the investment made by the NLC in stock market was in violation of rules. Additionally, the companies through which the investment was made were also not sound.
After a long wait, the GHQ a few months back had shown its willingness to share the required record with the Bureau. The reason for the delay now is said to be linked with a pending appeal before the superior judiciary by one of the senior retired military officers, who was penalized by the military for his role in the NLC scam.
The NLC scam is included among NAB’s 150 plus mega corruption cases, details of which were shared by the Bureau with the apex court last year.
While the NAB inquiry is pending for want of record from defence, the GHQ has also already completed its inquiry into the NLC scam. Since the major portion of the inquiry was being conducted at the GHQ, therefore NAB could not finalise/conduct inquiry proceedings in isolation without provision of record.
The NAB is contacting the GHQ since January 2012 for the provision of record.
In its own inquiry, the GHQ fired from service a two-star general (major general), who formerly headed the military-run National Logistics Cell (NLC), while a former three-star general (lieutenant general) was reprimanded for his role in the case.
A civilian was also found guilty after a five-year investigation by the army into the allegations of financial irregularities, lack of transparency and violation of rules and regulations in an investment made by the NLC in the stock markets.
According to the NAB record, the NLC corruption involves Rs4 billion.
The NLC reportedly suffered huge losses between 2004 and 2008 because of getting loans from commercial banks at high interest rates and investing Rs4 billion of pensioners’ money in stock markets.
Additionally, it was alleged that kickbacks were received from companies through which the money was invested.
The case came to light when the PAC took it up in 2009 and ordered the Planning Commission to investigate it. The NLC administratively functions under the commission as an attached department. The findings of the commission’s inquiry were referred to the defence ministry in 2010 for action against the accused military officers.
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