September 18, 2003	Thursday	Rajab 20, 1424

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ISLAMABAD, Sept 17: The National Accountability Bureau has recovered Rs900 million from 14 people involved in the country’s largest fraud case involving Rs1 billion, Labour and Manpower Minister Abdul Sattar Lalika told newsmen at a press briefing on Wednesday.

The fraud involved siphoning of the Employees Old-age Benefit Institution (EOBI) bank deposits.

The recovery has been made through plea bargain.

The minister said former EOBI chairman Barkatullah Sheikh and a banker, Tahir Siddiqui, were the main accused in the case. He was reluctant to disclose the names of those who had been arrested in the case.

The former EOBI chief had been declared an absconder as he had left the country before the NAB began its investigation, Mr Lalika said.

NAB Finance Crimes Investigation Wing Director-General Talat Ghumman said a major financial irregularity in the EOBI was detected during investigation into malpractice committed by the management of a private bank that was ordered in 2001.

He said that Mr Shaikh in connivance with Mr Sidiqui and 11 other bankers fraudulently obtained possession of federal investment bonds worth Rs1.04 billion in June 1999.

The accused sold the bonds in the market and the misappropriated amount was funnelled into more than 19 companies controlled and owned by the accused, their associates and relatives, he said.

He said a reference was filed against the accused in the accountability court No.II in Karachi.

He said the main accused approached the NAB and filed various applications for plea bargain.

The NAB chairman accepted the plea bargain and the accused transferred assets worth over Rs800 million to the EOBI, he said.

Prior to the plea bargain by Mr Siddiqui and others, family members of Mr Shaikh entered into a plea bargain deal and returned the benefits received by them amounting to Rs50 million, he said.

The official said a scam in the Workers Welfare Fund had also been detected during investigation into the bank’s affairs.

The fraud was allegedly committed by a former secretary of the fund in connivance with Mr Siddiqui and some of his associates, he said.

An investigation into the matter resulted in the recovery of Rs85 million, the NAB official said.

The minister said the NAB’s chairman had given up the bureau’s share of 25 per cent in the recovered amount.