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    Are Mushrraf's ministers filling their own Swiss bank accounts?

    Whatever happened to NAB?
    http://www.jang.com.pk/cgi-bin/ads/z...;member=rahman

    Where has Rs 80bn of privatisation money gone?

    By Rauf Klasra

    ISLAMABAD: The Public Accounts Committee despite its repeated attempts and requests badly failed here on Friday in its eventful meeting to find an answer to its troubling question that where had a massive sum of Rs80 billion collected from the sale of state run institutions had gone when it was disclosed hat this money was not used for the debt retirement purpose as propagated by the military government from time to time.

    In addition to it, indiscriminate use of billions of rupees collected from the privatisation money on consultant salaries and legal experts also raised many troubling questions that who was actually benefitting from the whole privatisation process after laying off thounsands of people as this heavy amount was not being used for the purpose of debt retirement. The Rs5billion have been spent on these consultants, advisors etc.

    The mysterious and confusing replies aimed at hiding the actual "use" of this money both from the Privatisation Commission and Finance Ministry officials made the things cast serious doubts on the actual use of such a big money that was collected after rendering thousands of people jobless on the excuse that that money would be used for debt retirement.

    †† But, now all of sudden, no body is telling the helpless and bewildered members of the PAC that where have this money has gone if not spent on the debt retirement.† No government official is ready to disclose the unknown areas where this money has been spent by the finance ministry wizards."

    Earlier, the PAC took the audit reports pertaining to PC where irregularities to the tune of Rs4b illion were detected. The meeting was presided over by the HU Beg, and attended by its members Shaukat Kazmi, Lieut Gen (retd) Talat Masoud, Ahdul Akmal, Hassan Bhutto, Mujahid Shahi. The Auditor General of Pakistan† Yunis Khan participated for the first time after taking the oath of new AGP on July 20. Deputy Auditor General (Senior) Ch. Mohammad Ilyas was also there to grill the PC.

    The whole trouble with regard to sorry state of affairs in the governance of the present government started when some of the PAC members wanted to know from the secretary Privatisation Commission Waqar Ahmad that where had the entire amount collected form the state run institutions gone.

    The charged and aggressive Secretary PC Waqar Ahmad clearly refused to divulge the information about the use of this money saying the Privatisation Commission had nothing to do with the use of this money as they had transferred that money to the Finance Ministry after keeping Rs10 bilion for their own expenditures.

    An arrogant Waqar Ahmad frankly asked the PAC to put that very question to the finance ministry as his job was to transfer that fund to the Finance and they might be knowing its use. † But, a day earlier, the finance secretary Nawaid Ahsan had also refused to disclose that where had the full money of privatisation gone.

    The PAC members were really at a loss to understand that why the government official were not ready to give reply to a simple question that where the government had spent the Rs80 bilion if not on the debt retirement. But, it was clear that the government officials had vowed not to disclose that million dollar question as to who and where had the funds gone.

    Earlier, the Secretary Waqar Ahmad told the house that a total of Rs79.858 billion were collected from the sale proceeds of privatisation of state run institutions. Only Rs3 billion were pending against different parties on accounts of commitments, otherwise, the government had received the entire amount. According to Waqar, a total of Rs 56.99billion was transferred to the finance ministry from this total of collection of Rs79.8billion. Rs5.5bilion were spent on the golden hand shake schemes, due of lawyers and voluntary retirement schemes. While, Rs4.8 billion were spent on the salaries, and cost of the financial advisors, legal expenditures and advertisements. † Thus, a total of Rs69.988 billion were spent on all these activities.

    While, Dr Waqar still had some bomb shell to drop in the PAC meeting when he pointed out that Rs9.87 billion were still lying with the privatisation commission from the total collection. And Rs7.62bilion are in addition to it were also lying with the commission in the form of foreign exchange reserves received on account of oil well proceeds. And, he said that the PC had already asked the ministry of finance to tell it what to do with that very amount.

    A very unpleasant situation developed in the PAC proceedings when the Secretary PC Waqar Ahmad started to give very sarcastic remarks against the auditors and other officials who " unlike PAC traditions and decorum used very authoritarian language with both the PAC members and Auditor officials."

    The deputy auditor general (senior) Ch. Mohammad Ilyas however, took Waqar Ahmad to the task saying it was unfair to use such language in the PAC as nothing was personal in such meetings and only officials matters were discussed in the meeting for the best national interests and that very spirit must be maintained.

    But, Waqar Ahmad did not give any heed and continued to attack the auditors The PAC also note that sarcastic and arrogant style of Waqar Ahmad and on certain occasions, asked him to lower his voice. But a charged and over confident Waqar Ahmad did not listen and had another direct clash with the PAC and auditor general when it was pointed out that why the PC was utilising the huge money collected from the sale of state run institutions. He was immediately challenged by Finance Ministry representative Muhammad Nasrul Aziz who said under the law the PC is provided funds from the secretariat budget, in addition to commission grants.

    But, Mr Warqar who was not ready to listen to anyone in the PAC, said he was authorised to use funds from the money collected from the sale of state owned institutions mostly sold at the throw away prices to the buyers

    Waqar Ahmad was also grilled by the PAC when the audit pointed out that due to PC's policy the factory workers of General Refractories Ltd could not be hired by the buyers. And this strange policy resulted in the loss of about Rs35million as the buyer had offered to buy that factory at the cost of Rs65 and now it has been sold at Rs35 million to some other buyer.

    Lieut Gen Talat was quite furious over this PC policy, saying "it was not only ridiculous but a stupid policy" that Rs35million were lost just because of the fact that the buyer wanted to re-employthe technical people running that factory. PC secretary Waqar Ahmad defended the policy saying it was a policy which should have been followed and which they did.

    All people are equal, but some are more equal than others. We call these "corporations."

    #2
    Everybody knows massiev corruption done by Army throughout Pak's history.

    No matter how many reports you post, some will refuse to believe Army is capable of anything wrong. Must be for personal reasons, ie.family link

    Comment


      #3
      UBL Privatisation At The Crossroads

      KARACHI: The privatisation process for the United Bank Limited (UBL) took a new turn Wednesday when the Abu Dhabi and Bestway Consortium offered the government Rs. 12.3 billion, Rs. 0.3 billion more than MCB's enhanced offer of Rs.12 billion, sources familiar with latest developments revealed here. The government is getting about Rs. 12 billion for the bank in which the state exchequer has already contributed Rs. 33 billion including a one-time injection of Rs. 22.48 billion in 1999. The present government also, through various means, provided financial incentives that exceeded Rs 10 billion.

      Official sources at the State Bank of Pakistan and Finance Ministry, however, described the latest offer from the Abu Dhabi consortium as 'outside the process' and insisted that the central bank and the Cabinet Committee on Privatisation would continue evaluation of the MCB group's funding plan for its offer of Rs. 12 billion for the purchase of majority shares in the UBL.

      The latest offer from the Abu Dhabi group, sent to the Privatisation Commission on Wednesday and formally reiterated by the Group's representative Sir Anwer Pervez in a special meeting with the Governor State Bank of Pakistan Dr. Ishrat Hussain in Karachi Thursday evening, surprised seasoned bankers because the Abu Dhabi group had earlier offered only Rs. 4.8 billion for the same transaction last month.

      "No serious business group would increase its purchase offer by about 170 percent in space of six weeks alone," said a central bank executive who didn't want to be named. "We like it or not the Abu Dhabi investors and Sir Anwer Pervez have thrown a spanner in the works." Sources in the Abu Dhabi group said that their offer not only gives the Privatisation Commission a better price, it may also help the government prevent an expected revenue loss -- approximately Rs. 1.1 billion a year that the CBR is likely to incur due to an expected merger of the UBL into MCB.

      A tax concession aimed specifically at merging banking companies, many tax experts say, was designed to provide unprecedented advantage to the MCB group that had already made public its plan to merge the UBL into the MCB. Sources in the MCB group, however, insist that the merger of this magnitude will at least take three years, hence there was no question of an instant advantage.

      These sources said that even after the merger the benefit would not exceed a few million rupees and not hundreds of millions of rupees as is being projected by some quarters. The offer from the Abu Dhabi and Bestway group came at a time when the central bank was about to make its judgement on the MCB offer. Several leaders of the business community and independent economists had urged the central bank not to let the MCB group use depositors money to finance their bid for the UBL.

      The MCB group sources said Friday that their funding plan made sure that depositors money at the MCB is not used for the UBL transaction, but the funding plan envisages raising funds through the issuance of right shares and term finance certificates. Informed government officials said Thursday night that the MCB group would still be given first chance to establish the credibility of its funding plan and in case the funds were not found to be originating from the MCB depositors' money, the MCB group would get the first right to own the strategic shares in the UBL.

      Federal Finance Minister Shauket Aziz, who is also the Chairman for Cabinet Committee on Privatisation (CCOP), reached Karachi Thursday night for important consultation with the State Bank Governor Dr. Ishrat. The central bankers are now examining the MCB group's funding plan from all possible angles. Separately, the CCOP was expected to make its own decision on the MCB's bid this week.

      Official sources confirmed that Mian Mansha of the MCB group was not initially ready to enhance his bid from the initial offer of Rs. 8.5 billion and they took several days, and a lot of convincing from top government officials, before the MCB group agreed to match the government's reserved price of Rs. 11.8 billion. "He was so frustrated that he wanted to abandon the whole exercise," confirmed a senior official. "It would have been a disaster for the process and the Privatisation Commission."

      A success in the bid for the UBL would earn Mian Mohammad Mansha headed MCB group about 19 percent shares of the nation's banking business. Banking experts say that the combined capital of UBL-MCB would be around Rs 17 billion, second only to National Bank's that stands at Rs 17 billion. Habib Bank's capital base is Rs 12 billion. At present the UBL is the fourth largest bank in Pakistan with a network of 1101 branches and 16 international branches. It has a market share of about 10 per cent.

      Mian Mansha's Nishat group runs Pakistan's biggest business empire with controlling stakes in the Muslim Commercial Bank, Adamjee Insurance Company Limited, several textile mills, an investment bank, a leasing company, captive power plants, and several cement factories. His group also operates two firms abroad. Mian Mansha also runs businesses in the United States.

      The UBL privatisation process had invoked tremendous interest in the political quarters also because Mian Mansha's family was always considered close to Mian Nawaz Sharif's family and his business empire was intensely probed by Benazir Bhutto's regime during her second term in office. Mian Mansha and the Nishat group were also probed under the accountability process initiated by former President Farooq Ahmed Khan Leghari following the dismissal of the second PPP administration.

      Neither the PPP government nor the present military government, which had also ordered an exhaustive probe into Mian Mansha's transactions with the Privatisation Commission including the gradual purchase of MCB stocks, brought any criminal charges against him. The MCB sources said that they were never officially informed about any probe or official investigation against any company or individual that belonged to the business group.

      "Before the MCB group was short listed for final bidding in the UBL transaction, almost every intelligence and investigating agency of the country cleared and approved us to participate in this flagship venture of the Privatisation Commission," said an MCB group source. In an open bidding held by the Privatisation Commission for the sale of majority shares in the UBL on June 10 the MCB group had offered the highest bid of Rs. 8.5 billion followed by Rs. 4.8 billion by the Abu Dhabi group and Rs. 4.4 billion by the Union Bank Limited and Associates.

      Initially the Privatisation Commission had received 21 Expression of Interest (EOI) for the purchase of 51 per cent share holding in the UBL. Amongst the interested groups seven were from Middle East, four from the UK, two from the USA and eight from Pakistan.

      The Pakistani parties were: Aqeel Karim Dhedhi Securities (Pvt) Ltd, Central Insurance Company Limited (a Dawood Group company), Fauji Foundation (Pakistan) Amsterdam Trust Corporation (ATC) (Netherlands), M Abdullah & Associates, Institute of Overseas Pakistanis, Invest Capital Securities (Pvt) Limited, Muslim Commercial Bank and Union Bank Limited.

      The parties from Middle East included ARY Traders (UAE), Abu Dhabi Group (UAE), Bank Dhofar Al-Omani Al-Fransi (SAOG) (Oman), Bank Muscat (SAOG) (Oman), Dalil International (Bahrain) WLL (Bahrain), Jawed Textile Mills Company (Bahrain) and Nasser Abdullah Hussain Lootah Group of Companies (UAE).

      The parties from United Kingdom (UK) included Ahmad & Nabi McMullan (Accountants & Tax Consultants) (London), Akhtar Group PLC. (London), Bestway (Holdings) Limited (London) and M.M. Sharif & Associates (London). The parties from the USA were IFS Inc (USA) and SB Technologies LLC.
      PAKISTAN - ALL THE WAY

      Comment


        #4
        Originally posted by RealDeal:
        Everybody knows massiev corruption done by Army throughout Pak's history.

        No matter how many reports you post, some will refuse to believe Army is capable of anything wrong. Must be for personal reasons, ie.family link
        I agree with you. Mushrraf needs to explain and fast, what the hel1 is going on. Comman man is getting screwed by paying higher prices for utilities, while nobody has idea where billions of rupees are going from sell of state own companies. Corruption was the very same excuse used by Mushrraf to take over the country illegaly.



        [This message has been edited by Shamraz Khan (edited July 26, 2002).]
        All people are equal, but some are more equal than others. We call these "corporations."

        Comment


          #5
          Musharraf is taking nation on a ride. He listens to everyone but still folows his dictator agenda.

          Comment


            #6
            Bushraff saying he gonna destroy corruption in pakistan yeah right!

            Now his ministers selling off national companies and utilities asif zadari style and getting there own 10%

            Comment


              #7
              I read it in a Pak newspaper that 87% of the Pak's money only goes to the army yet 13% only to the people of Pakistan.

              But then I think again, is this the army that is suppose to defend the country?

              Comment


                #8
                Originally posted by usman_khalil:
                I read it in a Pak newspaper that 87% of the Pak's money only goes to the army yet 13% only to the people of Pakistan.

                But then I think again, is this the army that is suppose to defend the country?
                I don't think they (Pak army) believe their duty is to defend Pakistan. Rather, it is create cross border terrorism across borders. The decision that the border skirmish with India is way more important than well being of Pakistani people was taken decades ago and kept alive by succession of dictators and rulers.

                [This message has been edited by ArjunMahavir (edited July 27, 2002).]

                Comment


                  #9
                  Originally posted by ArjunMahavir:
                  I don't think they (Pak army) believe their duty is to defent Pakistan. Rather, it is create cross border terrorism across borders. The decision that the border skirmish with India is way more important than well being of Pakistani people was taken decades ago and kept alive by succession of dictators and rulers.
                  Arjun please stop towing the same line over and over again.

                  I am not an eternal optimist like most Pakistanis and recognize that the Pakistan army for all the budget allocated to it has deeply underperformed when called upon. I'm not going to say that one Pakistani soldier is the equivalent to ten of his Bharati counterparts. Whereas I am willing to concede all of the above points, I think you also should recognize what is obvious to most sane people.

                  Kashmiris don't want to be with Bharat. I can understand that they don't want to be with Pakistan but then again how can they want to be with Bharat at all? I suggest that you wake up and admit that the bird that fell out of the air yesterday afternoon in New Delhi was not the doing of the ISI and Pakistan army. God don't you feel pathetic yourself when you blame things like monkey-man on the ISI?

                  If expect others to be reasonable why don't you try to be reasonable yourself as well?

                  Comment


                    #10
                    Look

                    i don't buy that line pak army is rubbish totally and corrupt. the pak army is bravest of the brave they will not be scared of anyone as an example above any army post or tent you will find hadiths declaring victory or martyrdom.

                    And i would say they are among the best armies in the world in terms of fighting and capability.

                    But the corrupt and sellout leaders for past 50 years always make them do the dirty work in the end which is not there job, there job is to fight.

                    Comment


                      #11
                      Originally posted by ak47:

                      But the corrupt and sellout leaders for past 50 years always make them do the dirty work in the end which is not there job, there job is to fight.
                      Obviously a very subjective opinion based on blind loyalty for whatever personal reason.

                      As for your above statement, if you know the history of Pakistan, it is the Pak army that tells civilians what to do, not the other way around.

                      You have made many, many posts blaming Pak Army for bretraying Mulims in Afghanisatn, is that the fault of the civilians as well?

                      Comment


                        #12
                        I'm having a bit of a problem with the amount Rs. 80 billion.. that would equal about $2 billion.... which state enterprise is worth that much.... the Sui Gas, PIA, PTCL, WAPDA, or perhaps the banks.... I don't think that they have been sold as yet... so before rushing to conclusion I would like to know from where this money came from in the first place. I support Pres. Musharraf but unlike many politician supporters... I would like to see some people behind bars if it is proven that this money was stolen.

                        Regarding the UBL sale.... the Pak gov't needs to get out of the commercial banking fast.... the main reason for the losses the political loans...which people don't return...... BUt I hope that the bank is kept in Pakistani hands.... I don't want to see any money going abroad it should stay within PAK.

                        Comment


                          #13
                          Originally posted by sambrialian:
                          Kashmiris don't want to be with Bharat. I can understand that they don't want to be with Pakistan bla bla bla
                          Wrong again. Kashmir is and wants to be India. And it doesn't take much to understand why they are anyother Indian would want to be part of anything other than India.

                          It's very simple. You can't take the rejection that Kashmir said NO to Pakistan and YES to India.

                          Aha, it was the decision of the ruler you say? It was the decision of the people also. Further, atleast that ruler didn't come to power by coup. If Mush as leader of Pakistan in spite of a coup, can bind Pakistan with his decisions, the then ruler of Kashmir had a million times more mandate. Envy should not be let to drive nations.

                          Comment


                            #14
                            WOW!

                            You guys are so smart in blaming Army!

                            BTW, have you looked the link I provided?

                            Comment


                              #15
                              Originally posted by ArjunMahavir:
                              Wrong again. Kashmir is and wants to be India. And it doesn't take much to understand why they are anyother Indian would want to be part of anything other than India.

                              It's very simple. You can't take the rejection that Kashmir said NO to Pakistan and YES to India.

                              Aha, it was the decision of the ruler you say? It was the decision of the people also. Further, atleast that ruler didn't come to power by coup. If Mush as leader of Pakistan in spite of a coup, can bind Pakistan with his decisions, the then ruler of Kashmir had a million times more mandate. Envy should not be let to drive nations.
                              Nonsense, when Pak is back to a democracy, are you going t ouse your last para?

                              If kashmir wants to be part of india why are there so many protests by Kashmiris? Why is India afraid of a plebiscite on the issue?

                              Comment

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