MUZAFFARABAD: A senior officer of the Azad Jammu and Kashmir (AJK) department of Inland Revenue, who had pinpointed losses to the AJK exchequer to the tune of Rs8 billion, is being made to pay a price for the whistle blowing.

Ishtiaq Ahmed, currently serving as commissioner (appeals) in BS-19, had submitted a report to the federal secretary Kashmir Affairs in September 2013, highlighting gross irregularities in the issuance of tax refunds worth billions to the foreign companies engaged by Wapda for hydropower projects.

The department of Inland Revenue falls under the administrative control of the AJK Council, which is headed by the prime minister of Pakistan as chairman with its secretariat in Islamabad.

In 2013, Ishtiaq Ahmed had unearthed over Rs8bn corruption in tax refunds to foreign firms by Wapda

The federal minister and federal secretary Kashmir Affairs are its in-charge minister and administrative secretary, respectively.

Mr Ahmed’s report pointed out that since the foreign investors were undertaking only high-return projects in Pakistan, they could not suffer business losses.

The report also cited a lack of proper assessment of domestic companies as well as favouritism in the award of performance-related cash rewards, misuse of official vehicles and ministerial staff and irregularities involving receipt of cash in the excise offices.

However, the Council detailed its own officers for an inquiry into the report instead of assigning the task to any external firms as permitted by the income and sales tax laws.

Prior to that, on January 15, 2014, an FIR was lodged against Mr Ahmed by his ex-wife (divorced in 2009) wherein she alleged that he had sold her vehicle fraudulently in March 2008. The FIR was suspended by the AJK High Court (HC) but the Council placed Mr Ahmed under suspension on its basis on February 3, 2014.

Separately, a session court also noted discrepancy in the complainant’s version and held that prima facie the allegations against Mr Ahmed were untrue.

However, the Council set up its own “fact finding committee,” which recommended action against him on the grounds that he had “used his position for the transfer of the vehicle ownership.” The ownership was transferred on September 17, 2008, when Mr Ahmed was abroad on a training course.

On May 22, the AJK HC set aside his suspension notification of Feb 3 but the Council maintained that the suspension was done under another notification issued on May 2, 2014.

The second notification was also suspended by the HC on May 30. Later, the Council filed a petition for leave to appeal (PLA) with the AJK Supreme Court against the HC interim order, alleging that “Mr Ahmed was involved in a serious crime and causing revenue losses by passing vindictive orders as commissioner (appeals).”

The Supreme Court held that the competent authority (PM Pakistan) could proceed against him under the law.

Based on the apex court order, the Council sought approval from the PM for disciplinary action against Mr Ahmed. The approval was granted but with a condition that the inquiry officer should not belong to the Council or the Ministry of Kashmir Affairs. On April 15 this year, the FIR against Mr Ahmed was also quashed by the senior civil judge, Muzaffarabad.

When contacted, Federal Secretary Shahidullah Baig said an inquiry into the matter was under process.

“The prime minister has sought a panel of three officers, not belonging to the Ministry of Kashmir Affairs and the Council, which has been sent.” He denied that the Council had anything to do with Mr Ahmed’s family dispute.

“In fact, the inquiry is because of transfer of a vehicle. Papers have been sent to the PM office after consultation with the law division,” he said.

When asked why Mr Ahmed’s report was not verified through external experts, he counter questioned: “Do you think all those sitting in the Council are dishonest?”

Published in Dawn, April 30th, 2015

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