April 3, 2003	Thursday	Muharram 30, 1424

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ISLAMABAD, April 2: The National Accountability Bureau recovered last year defaulted loans amounting to Rs23.721 billion and deposited it in the national exchequer, NAB annual report- 2002 revealed.

The report was launched on Tuesday during a news conference held at the bureau’s headquarters.

The report has also been presented to the President Pervez Musharraf and prime minister Zafarullah Khan Jamali by NAB’s chief Lt-Gen Munir Hafeiz.

According to the report, NAB recovered and deposited Rs933.589 million with the government treasury in the year 2001.

The report said NAB recovered Rs5.697 billion in the first three months of 2002, Rs8.069 billion from April to June, Rs5.017 billion from July to September, and Rs4.938 billion from October to December.

According to the report defaulted loans to the tune of Rs6.818 billion were restructured/rescheduled by banks and financial institutions during 2002.

During the same period governor State Bank of Pakistan had referred 11 complaints to NAB involving Rs9 billion, whereas settlements were successfully facilitated between the concerned banks and the defaulters.

The report said the bureau carried out investigations of seven major financial crimes involving an amount of Rs4 billion. Similarly, three references have already been filed in the accountability courts and four other are in the process of being filed.

During 2002, out of a budget of Rs920.377 million, NAB saved Rs248.932 million.

According to a breakup of the budgetary and financial positions of the bureau during 2002-2003 (June-December) the budget was Rs358.995 million and the expenditure incurred amounted to Rs119.950 million, thus saving Rs239.045 million. During the period the bureau recovered and deposited Rs585.482 million.

However, in 2001-2002 the total budget was Rs255.648 million and the total expenditure incurred remained at Rs252.032 million, thus the savings were Rs3.6161 million.

It said the NAB received a total of 7,575 complaints including 1,542 by the headquarters and 3,205 by regional NAB’s offices. Of which 2,517 were dropped and against 311 cases inquiries were initiated.

The report said investigations of 417 cases have been completed, 219 cases were closed, and 540 cases are under investigation. Of the 540 cases, 119 were related to politicians, 239 against bureaucrats, 19 businessmen, 12 armed forces personnel, 95 cooperative scams and 56 others.

On the recommendations of NAB, the report said 68 politicians, 111 bureaucrats, 50 businessmen, 6 armed forces personnel, and 177 others were put on the ECL during 2002.

The report said NAB’s financial crimes investigation wing (FCIW) took concrete steps in helping the banks and financial institutions in their recovery drive.

Based on the relentless efforts of NAB and active participation of these institutions, the data received from the State Bank of Pakistan shows a cash recovery of Rs23.721 billion during 2002 (June-December) against defaulted loans.

The year 2002 also saw a very active involvement of NAB and its officers at the international forums. The British Home Office and the US Government Interagency Assessment Report have been appreciative of NAB’s financial investigative abilities.

Major investigations carried out by the FCIW during the year 2002 included Employees Old-Age Benefit Institution (Public Sector Organization) involving an amount of Rs1,618.000 million, Asif Ali Zardari (politician) involving properties and bank accounts in the UK and Switzerland worth millions of dollars, Ex-Emirates Bank (financial institution) involving Rs 288.000 million. References have been filed in the accountability courts in these cases and are in progress, the report said.

Major investigations also included Workers Welfare Fund (public sector organization) involving Rs85.103 million. Rs76.143 million have been secured through plea-bargain/voluntary return.

Other investigations included Prudential Investment Bank involving Rs144.000 million, Ex-Prudential Commercial Bank involving Rs300.000 million, and Ex-Prudential Commercial Bank involving Rs37.000 million. Investigations in these three cases have been completed and references are being filed.

The report also highlighted high-profile convictions in the year 2002.

The report informed about the NAB functions, legal framework under which it operates, the core structures of the organization, the support structures, contribution of regional NABs and the future vision with particular reference to require political will for the eradication of corruption, national anti-corruption strategy and the significance of good governance.

The NAB spokesman told reporters that no case of loan default had ever been filed against PML-Q’s parliamentary leader Chaudhry Shujaat Hussain and Punjab Chief Minister Chaudhry Pervaiz Elahi.

He said NAB could not initiate any loan default case without any reference of State Bank of Pakistan and as far as the loan default cases of both the politicians were concerned, the bureau had never been asked by the SBP to initiate investigation against them.

Responding to a question about non-performing loans, the official said NAB had to recover Rs211 billion non-performing loans from individuals as well as different entities.