August 19, 2007	Sunday	Sha’aban 5, 1428

ISLAMABAD, Aug 18: Five opposition senators on Saturday questioned the arrest of low cadre employees of the tax machinery instead of main culprits in a tax scam involving over Rs2 billion dubious refunds payment on phoney exports.

An explanation was sought through a call-attention notice submitted by senators Mian Raza Rabbani, M. Enver Baig and Dr Safdar Ali Abbasi of the People’s Party Parliamentarians, Sadia Abbasi of the Pakistan Muslim League (Nawaz) and Asfandyar Wali Khan of the Awami National Party to the Senate Secretariat. It was submitted under rules 59 of the rules of procedure and conduct of business in the Senate.

The senators invited the attention of the finance minister to the famous Bawan Shah tax fraud case and its resultant panic among the low-grade CBR officials who had gone into an indefinite strike.

The initial inquiry into the case was started in December 2005 by the customs intelligence and collectorates which led to the arrest and suspension of low-grade officials of the tax administration.

Raja Mohammad Zarat, chairman of the Bawan Group, was arrested on May 2006. His bail plea has been rejected by all courts, including the Supreme Court, and he was currently in judicial custody. His main accomplices have, however, fled the country.

The case was then referred to the National Accountability Bureau in Nov 2006. Since then no tangible progress has been made in the case. The bureau is reported to have quizzed the low-grade CBR officials instead of the high-ups.

A source at the FBR told Dawn on Saturday that the NAB authorities in Sindh had recently arrested six people in connection with the scam. According to a report of the Directorate General of Intelligence, Investigations, Customs and Exports, Bawan Shah Group had allegedly obtained Rs2.06 billion on account of sales tax refunds, customs rebate, DTRE remission and exemption under SRO410(1)/2001 between 2001 to and March 2006.

The amount included Rs1.219 billion of sales tax during 2001-05, customs rebate of Rs604 million between 2001 and 2006, DTRE remission of Rs156 million from July 2005 to March 2006 and Rs81 million on exemption under the SRO.

The report said that Raja Mohammad Zarat, along with some of his associates, had been allegedly involved in fraudulent/phoney exports and misuse of the DTRE scheme.

The source said that no fresh list had been provided to NAB. The officials posted at various positions at the time of issuance of bogus refunds could be quizzed any time, he added.