ISLAMABAD: Pakistani officials used a secret counter-terrorism fund to buy wedding gifts, luxury carpets and gold jewellery for relatives of ministers and visiting dignitaries, according to documents seen by AFP.
The revelations cast a spotlight on high-level corruption in Pakistan as the impoverished but nuclear-armed country battles a surge in Taliban violence.
They concern the National Crisis Management Cell (NCMC) of Pakistan's interior ministry, formed in 2000 to coordinate between the country's intelligence agencies and federal and provincial governments on national security matters.
The US and other Western countries have poured billions of dollars into Pakistan since the 9/11 attacks of 2001 to help in its fight against Taliban and al Qaeda linked militants.
The NCMC received some 425 million rupees ($4.3 million) from Pakistani government coffers from 2009-2013, according to files obtained by Umar Cheema, an investigative journalist for Pakistani daily The News, and seen by AFP.
During that time the interior ministry was headed by Rehman Malik, a flamboyant loyalist of former president Asif Ali Zardari's Pakistan People's Party (PPP).
Watches, carpets, gold, goats
Many of the documents deal with payments to intelligence sources, routine maintenance of vehicles and overtime for employees.
But the files also include receipts for gifts for US and British embassy officials, as well as flowers and sweets for journalists.
One receipt for 70,000 rupees ($700) is itemised as a “Pair of wrist watches for marriage of nephew of minister for interior”.
The documents show that on a trip to Rome for an Interpol conference in November 2012, Malik took a necklace, wooden tables and a TouchMate tablet computer as gifts.
The counter-terror fund was also used to buy three rugs as wedding gifts for the son of former prime minister Raja Pervez Ashraf early last year.
A set of 21-carat gold jewellery worth $3,000 was bought for one unnamed individual, while another was the recipient of a $1,500 set.
A handicrafts store in Islamabad was paid some $23,000 in December 2012 for carpets and crafts given to local officials and delegations from the EU, Iran and India.
Among the more bizarre items paid for from the fund was the $800 cost of four sacrificial goats, plus butchery costs, listed as “stabbing charges”, for the festival of Eid-ul-Azha.
Alms to the poor and donations of sweets, flowers, and cash to a local Sufi saint were also made from the fund in 2012, the documents show.
'You know how Pakistan works'
Pakistan's present government, led by Prime Minister Nawaz Sharif, has ordered an audit of the interior ministry accounts from 2010-2013.
Ministry spokesman Danyal Gilani confirmed the audit was ongoing but declined to indicate a timeframe for its completion.
The director general of the NCMC, Tariq Lodhi, did not respond to repeated attempts to seek comment. Upon coming to power in June last year, Sharif's government abolished secret funds in 16 ministries in an effort to curb corruption and rein in spending.
Malik, who as minister was famed for his expensive ties and purple hair-dye, mounted a firm defence of his conduct on Twitter, denying he had used the fund and saying it was “never under the control of the minister”.
Asked why some receipts contained hand-written instructions saying they were the minister's directives, Malik told AFP: “You know how Pakistan works.
Just because it mentions me does not mean I personally authorised the payments.”In a tweet, he said using funds to entertain dignitaries and offer gifts was “routine for 15 yrs”.
But Moinuddin Haider, who served as interior minister from 1999 to 2002, said the NCMC fund was not set up to pay for “gifts abroad”.
“The purpose of these funds was to establish offices in the provinces, primarily to be spent on communications equipment and data analysis,” he told AFP.
Cheema, who won the Daniel Pearl journalism fellowship in 2008, said the affair was indicative of how officials had turned the national terror crisis, which has killed thousands of people across the country since 2007, to their own benefit.
“This abuse clearly explains how our leaders convert a tragedy into an opportunity for personal gains,” he said.
“If history is any guide it's not going to be resolved nor will the abolition of secret funds lead to any corrective measures.” Ayesha Siddiqa, a security analyst, termed the use of the funds “sad”, but said a lack of clear counter-terrorism policy direction by successive governments was also to blame, as well as the way Pakistan's bureaucracy works.
“There is also this problem with the government where if a department gets funds you're in a hurry to spend them, because if the funds lapse they will be deducted the next year and the department will be reprimanded,” she said.






Comments (96) Closed
There is just two words that describes all concerned: SHAMELESS INDIVIDUALS
I feel like throwing up, so disgusting are these people.
Rehman Malik immediately banned Pillion Riding, Mobile Service and implied the foreign hands and conspiracy in buying the expensive gifts!
And we wonder why our government, judiciary and Law inforcement agencies are underperforming. This is just the tip of the iceberg!
How is Rehman Malik still out of jail baffles me.Then again,it's Pakistan and totally understandable.
Now I suspect that major part of Billions of Rupees approved by Sindh Government for up-gradation of Police equipment shall be stashed away in personal Accounts in or outside the country
any comments on your uncles conduct bilawal zardari
disgusting and to try and justify it by saying this is hoiw it works in pakistan shows the mindset of the people
And we still vote them and bring them in power. Are we not responsible?
whilst entertaining dignataries can be justified as a government expense, but buying gifts for the ministers nephew? He should be made to pay it back.
These shameless individuals are living in another Pakistan of their own- not the one our common man lives in. They should be held accountable for this rampant corruption, if that's not hoping too much on our part.
I feel like crying wit blood tears over the pathetic & corrupted mind frame of these highly corrupt individuals. I feel like cursing them bad. They are the real suckers of Pakistan
Corruption ---- Zindabad ! It is not the first or the last time. Corruption will go on, unless political leaders act with honesty, which will never happen in Paistan
What an absolute disgrace! This is why we are where we are. Do we need further proof? All Pakistanis are focused on destroying Pakistan. Our politicians only reflect the national mindset!
@sabeeh omer: Shameless but not surprising. We need a political spring.
"routine for 15 yrs" SubhanAllah... subhanAllah.. so called LEADERS..
Our leaders and the society at large 'twisted' mind set has become the norm. We need to be educated and retaught the meaning of 'honesty'.
@Masoud: Enjoy Democracy ..
@sabeeh omer: Arrest all those who gave and received gifts, all those who maintained books, all those who presented, show their faces on all TV channels.
They all fall into new terrorism ordinance, first 2 catagories must be jailed for minimum 2 years or more and others 6 months.
This is pathetic, There should be an accountability for every one. individuals found guilty should be treated with iron fist.
Good Job by journalist, truth of the matter is if these corrupt will not be audited and punished due to bigotry reseasons
a good job by journalists and media, but the truth of the matter is these people will never get audited and punished due to bigotry reasons
Kal bhi bhutto zinda tha....aaj bhi bhutto zinda hai......therefore it will remain the same...nothing will change
Well done . thats what we deserve. guys keep Voting for PPP, PML-N, Maulanas etc etc, well done...
a good job by journalists and media, but the truth of the matter is these people will never get audited and punished due to bigotry reasons
I love the indifference of Pakistan's political elite to its culture, values, and simply competence. "Stabbing Charges"? Priceless.
there shouldn't be any surprise because money coming from west whether aid or otherwise is meant for the pleasure of elite they use some for merrymaking and the rest is stashed in western banks donors and funding agencies know this and are very comfortable with it so no surprises
What could be more pathetic than a then minister commenting on a question regarding corruption under his hat, "You know how Pakistan works." Hopeless.
Even when the embezzelement has now been made public, the culprits will never be punished because as one of the notorious corruptionists said and DAWN quoted, "This is how Pakistan works". It is unfortunately a norm in our beloved country that people, especially our politicians, when found guilty of corruption, still remain "cool". If at all one of them is indicted, they are ordered by courts to return some fraction of the money the embezzeled as fine. Is that really a punishment? China has just sentenced to death one of its officials on graft charges. But, ours is a different case. The same corrupt officials are again members of Senate and National Assembly. Can't our courts atleast bar them for a life-time from gaining enterance into these legislative Assemblies? Do we really want them to make laws for us?
khufia funds should be completely abolished for all departments and individuals including the security agencies and the army chief and everyone must be subject to annual audits beginning with the armed forces, thank you.
If this is democracy, i will a hundred times prefer the dictatorship of Pervaiz Musharraf. Pakistan had a respect and a bright future during his time.
@omair Najam: U mean Iron Rod !!
@omair Najam: Really ??? in Pakistan ???? GOOD LUCK ,,,,
@sabeeh omer: YES,,,,,,, BUT There needs to be accountability,,,,, Theyre BOLD and getting more bolder !!!
"Kal bhi Bhutto zinda thaa aaj bhi Bhutto zinda hai." aur jab tak rahey ga Pakistan, zinda rahey gaa Bhutto ka diwaan.
btw, those who broke down in tears after reading this, my request is to please save some tears because in next few years you are going to read more deplorable news.
Kudos to those who voted for jiyalas
No body will be charged, nothing is new, people are dying in the streets daily, and terrorists know the extent of corruption of Pakistani officials.
The former interior minister for a change is absolutely right. It is exactly how pakistan functions. Don't live in denial.
The best solution is to arrest these people and hand them over to TALIBANS, for quick justice.
This all happened while AAZardari was the president. Why should AAZ be concerned, he patronized men like Rehman Malick, corruption was epitomized during Zardari's rule. Will there be any investigation ? Of course not,like other corruption scandals in our history, this will be hushed up.
This report has lot of meat but is being used as a twister to make the PPP passive. PML(N) is not a cluster of angles. However after some time this report will go in the cold storage.
@Masoud: That is the maximum on can do. If one can't fight out the problem than condemn it in the heart.
Nothing new same old. It will be a news that there is no corruption in Govt accounts.
' Rehman Malik, a flamboyant loyalist of former president Asif Ali Zardari's Pakistan People's Party (PPP).' The main function of Rehman Malick was acting as carrier pigeon of Zardari, carrying all lucrative offers to Altaf Bhai of MQM. As interior minister, he was the master of dubious statements.
How can one pay for sacrificial animals using the State's money? This is not even halaal?
Alms to poor and donations to Sufi shrine? How can one expect to get reward for these when the money does not even belong to oneself?
The height of corruption and I can guarantee this is going on in multiple govt departments where the state and tax payer money is being wasted to earn God's good graces through misuse of funds. How little these people know about what God accepts as a hassan act and rewards for it.
When u have a criminal as president voted in by us ignorant Pakistanis what does that show you about a country and it's people.
Only the law of Allaah once it's established will cut the hands of these criminals for good and Allaah will blessthis ummah once again
Sounds like something that would happen in my glorious India.
Now we know why we not yet win the war. Who wants to end these luxuries of War on Terror? :)
These individuals should be sent to jail without any trial.
Long live democracy which we are so proud of and the patriotic slogans we raise during national days and after. The common man is suffering and these big cats are gaining fat at every turn of government change. Over and above, US pays lavishly out of funds paid for the US tax dollars. The situation in India is different but not much. After all, we are the newest democracies and freedom to loot the public funds is our motto.
Pakistanis are killed by their own instead outsiders. The one who shall be protecting them are partying & looting. Shame on such people.
I wonder what was the idea behind to divide the country since state of affairs in other parts of the continent is the same, just we added two fighting armies which was one at a time. The corrupt is corrupt , may be he is a Hindu , Muslim or Sikh . The common man is burdened with cost of defense/army against each other .
For some reason we Pakistanis believe that we will produce a different result by doing the same thing again and again over years. And hence we pay this price for bringing the same corrupt politicians over and over again.
So lets make sure that we vote for the Bilawal Zardari next time, after pml-n has finished looting the country in this term.
Honestly, what else were you expecting? We are talking about a country, where corruption is a common and accepted means of doing business. While I agree it is pathetic, how do you think our senior leaders have accumulated their wealth. What i find most amazing is how can these folks sleep at night, knowing their actions are causing drastic hardships to the rest. I am sure their conscience must be killing them, more than this stealing is bringing them material happiness.
Pakistan should have a live website with every single penny accounted for every time it is spent.
@omair Najam: Whose had this iron fist. This is dilemma of Pakistan. Our past and current government will only make statement with no substance.
The fact that people like Rehman Malik are even in Pakistani politics after repeated evidence of incompetence and corruption is nothing short of shameful.
Right , Apart from Rehman malik spendings for himself ,rest can be justified ,you do not earn the loyalty of "informers" for free of charge .There is some serious money involved .As the saying goes "every one has a price you just need to know what the price is ".
I am really sick of Pakistanis blaming America for everything. Yes,American should take some blame and stop handing out cash to corrupt politicians of Pakistan. American gave Pakistan so much money that if they had used it correctly, they could have build a highly sophisticated intelligence network to avoid terror. Real shame!
Majority is corrupt in Pak, whats the surprise. Majority voted for corrupt people, I felt nothing by reading this. This is a norm, and there is nothing strange about it.
I am really worried now about the future of our motherland.. right now I am sitting on my rocking chair just staring at the wall..hopeless situation. Corruption was the only field where we have excelled but by reading this report I found two very alarming signs
I think its a matter of grave concern; all the black sheep of our nation should find the one who is bringing the standard of corruption so low... mark my words if this trend continues then class system is in real danger... imagine what happen when supplier offer $700 Kickback on our next billion$ deal? no foreign ( read in Urdu as well) shopping of begums and children.... what a worrying sign isnt it!
ps: for those who want to reply I just want to mention that there is pun intended .. :). I am as deeply concerned as you are
Out of curiosity, has ANY senior government official ever gone to jail for corruption in Pakistan??? Or were the investigators and auditors fired/demoted?
@sabeeh omer: you can use any words for them they WILL NEVER change
It is hard to fight a fight ,when you heart and mind acknowldges your opponents moral and relgious belives,and you know what they are doing and sacrificing for is identically same as yours,you agree with their stnd whole heratedly. but you have to fight,so fight with kid gloves.
"The US and other Western countries have poured billions of dollars into Pakistan since the 9/11 attacks of 2001 to help in its fight against Taliban and al Qaeda linked militants.
" Can this be proven ? I dont think they have given billions. Certainly not in cash as suggested here. Regardless what the pollies have done is disgracefull.
Counter terrorrism funds were provided by the US and other western countries to combat militant groups operating in the country. Since funds were managed by the interior ministry headed by Rehman Malik, a close confidant of Asif Ali Zardari. Birds of the same feather fly together. Mr. Malik is denyng any wrondoing but the gits were given to his close relatives. Mr. Rehamn if you are an honest man, get the value of the gifts back from your relatives, sufi saints and deposit them in the government account. If you did not know what was going on in your ministry, it means you were sleeping on the job. Pl. return all the salary you received from the government because you did not do your job. If we don't take any action now, the foreign governments will ask for reimbursement.
Absoutely outrageous! It looks everyone is corrupt! Shame on our leaders
This probably is just the tip of the iceberg...
@omair Najam: accountability r u kidding we could expect a NRO as accountability is too much
Reporting of consequence - hail mr. Cheema
Leaders reflect the people they represent, its us as a nation which are at fault. Every individual should analyze their actions what we do on daily basis that is the real change !!!!!
When you hold a dual nationality......and a government job at the same time, your loyalty certainly will not be to Pakistan
As a nation (of course, with minor exceptions) we are a disgraceful and one of the worst nations in corruption (and increasingly so), and however much 'we claim our highest-degree of piety and self-righteousness and submission to our Faith (in worship), others rightly judge us by your conduct and actions rather than words or beliefs or religious practices'! As an overseas Pakistani, I am ashamed of my countrymen, but then, they live in their own little-insulated World (Duniya) oblivious to the hard realities some of us, abroad, have to go through with, due to their misdemeanours!
Not surprising really. It has become a fashion in Govt circles to misuse funds.
We need to correct our ways otherwise we as a nation have a bleak future.But unfortunately we all knows what going on in our goivernment circles and power corridors they are seeing in front of their eyes how low we as a nation going but no one cares and this news is a clear evidence of that pathetic mindset.
@SMQ Zaman: @SMQ Zama: Pl. don't place all the people of Pakistan in the same category. There are a lot of hard working people in Pakistan who earn their living honestly. There
@kamljit Singh:
"The corrupt is corrupt , may be he is a Hindu , Muslim or Sikh . The common man is burdened with cost of defense/army against each other ."
So True....
So Malik played with citizens
security funds and spent it on his personal expenses. Isnt this enough for the Police to go ahead and arrest him for embezzling government funds, theft of government property, misappropriation of government funds, misuse of his powers, corruption and the list can go on. Is ko chawrahe pay korey marne chahenye.so what malik sb. is saying is that there is no check and balance in Pakistan, anyone can write a minister's name and no one will confirm that. well he is correct, there was no check and balance during PPPs tenure, they were in there for the money and they all went out fat and well fed. we don't need enemies, our leaders have done a wonderful job.
O' Pakistan, I feel for you, we named you Pak, but everything opposite is happening to you. Alas!!! I wonder how Jinnah would feel if he was alive today..
@Farhan: Shame on us, we accept them as leaders..
@Ali: A brilliant idea - but most impractical. First of all - it just is not possible and secondly, in Pakistan? You can't be serious!
Good job Pakistanis. Excellent progress, remarkable accomplishment. You have done everything to break all the records of corruption and make us look bad. Wonderful. Keep it up. And for the people of Pakistan I request them to keep electing these thugs as your elected representative in the Government. Inshallah you will continue to be be rewarded.
Nothing new. Hopeless situation. What else can we expect from our leaders?
Pakistan bleeds while the politicians thrive. Roti, kapra aur makan ka nara lagana walon ka bus chalay toh yeh ghareeb ka pait cheer kur roti nikal lain! How naieve are the ordinary folks who are so easily be-fooled.
misuse of public money for their own luxury life.
Oh yes 700 dollar and some gift exchange is the biggest crime by politician. But billion dollar Pakistan losing because of religious lover is minor deal.
and why is this surprising? from a fruit seller in the market to the minister in parliment, one will swindle you for 5 Rs and the other for 5 Mil. our leaders are from among us and are a product of our own system.
excellent work mr cheema for pointing these things out and showing us the mirror
@Parvez: By your statement, it seems everyone in a government job has dual nationality including all the leaders and army personnel
Stabbing charges!! Hilarious - yes, not for the goat but on the public!!!
Ask the esteemed minister to pay back the govt . And put a stop to this , these rich politicians are bleeding the common man dry
How about Nawaz Sharif send police officers into Raja Bijli's house and take back the rugs?
Also its not to late to freeze all of Rehman Maliks pink ties and any properties he has in Pakistan. Shoot, board up the Subway restaurants in UK.
Incomplete analysis and biased/ prejudiced reporting. Wonder if this is the standard of our investigative journalists, that too of the one who has been a recipient of fellowship!
Reading the comments below I'm surprised the way people are making such a big deal out of this...i think this is a norm for pakistani's. recently I was on a visit to pak, to discuss some business matter with some reps of a renowned based MNC operating in pak,
we were having a lunch meeting, for which I paid the bill. But after i made the payment one of the reps picked up the bill receipt and said with a crooked smile " at least I'll get to reimburse this!"
I left disheartened..it's not just the govt employees I feel all most all of them are doing it at some level..hence buying qUrbani bakras worth a few hundred dollars is kind of their level and standard..
Don't worry all of this will be fixed the very day we get done with general musharraf's high treason case, because of course this corruption is also his fault.
I wish the US would send auditors instead of drones here!
@SMQ Zaman: Very well said SMQ.
@Stapedius: you mean the same courts who fooled the "awaam" for six years and eventually what Musharraf said about Arsalan Iftikhar proved to be correct (if you remember it was because of Arsalan Iftikhar that he had dismissed Iftikhar Chaudhry), with judicial corruption rampant to the very top!
How ironically like the lies woven for Iraq war -- the lies woven for independence of judiciary -- how many terrorists convicted till date -- ZERO how many corrupt politicians jailed or sentenced -- NONE -- yet the guy who told the truth is being hounded and chased like a criminal by the worst criminals in history of Pakistan.
And Mr. Chaudhry enjoying bullet-proof car with his entire family at our expense -- first person to be tried for article six should be Chaudhry Iftikhar who allowed President Musharraf to abrogate the constitution and gave it "clean chit"!!
This was the judiciary for which the "aam awaam" kicked out the guy who gave prosperity and progress to Pakistan!
@Muhammad: Stabbing the awaam -- gives new meaning to "qurbanee ka bakra" -- yanee awaam!