KARACHI: A probe by the Federal Investigation Agency (FIA) into a multimillion rupee fraud case in the funds of the Pakistan Steel Mills (PSM) took an interesting turn on Tuesday when the agency ordered separate inquiries against its own officials as well as the complainant of the case for allegedly twisting facts to target certain PSM officials “with mala fide intentions”.

Officials said that the director of FIA, Sindh, wrote a letter to the FIA director general informing the latter about the investigation officer (IO) of the case and a lower-cadre official who were allegedly working at the behest of the complainant of the fraud case.

“The complainant tried to make the investigation controversial as recent investigation was not as per his wish and requirement,” said the letter. “Mr Altaf Hussain, additional director FIA has been directed to carry out a fresh inquiry regarding allegation against Sufyan Ahmed of Reliable Hospital Supplies [complainant]. A regular departmental inquiry against Inspector Mohammad Iqbal [IO] and Mohammad Suleman [lower-cadre official] has been initiated and entrusted to the additional director FIA being the senior officer in the zone and as the case is also being investigated under his direct supervision.”

The FIA had in December 2016 arrested some senior PSM officers — General Manager Nusrat Islam Butt, Manager Dr Mustansar Gillani and senior officer of accounts section Fahad Khan — for their alleged involvement in misappropriating millions of rupees in the procurement and contracts of medicine supplies for the hospital of the country’s largest industrial complex.

The officials, said to be involved in the misappropriation, include in-charge of facilities in the medical department and the chief medical officer of the PSM. During the inquiry, it was established that the suspects got a budget approved for purchase through an imprest account.

At first, they got Rs10 million and used Rs3m for purchase through the imprest account and Rs7m used through the spot purchase cell of the PSM.

Later, the budget rose to Rs26m and most purchases were made from unregistered sellers of medicines and from “freelancers” who were originally engaged in supply of hardware, tools and general items. Even “bogus vouchers” were used to show supply and payments.

The officials said that further investigations unfolded more facts that the complainant was in direct contact with the IO and other FIA officials for influencing the process and facts.

The letter to the FIA DG referred to the fact that the agency was informed by a senior Sindh police official that the inquiry on the complaint was conducted at the behest of the complainant due to their close contact with FIA official Suleman.

“After the investigation was transferred to the crime circle, the next investigation officer, Zahoor Ahmed Bajkani, established that two of the accused persons namely Hamid Pervez and Nusrat Islam Butt nominated in the FIR as well as in the interim charge sheet by the previous IO are totally innocent and both may not be sent for trial,” said the letter.

Apart from influencing the investigation, the official said that the FIA had also found evidence of overbilling and supplies of spurious medicines by the complainant to the PSM, which convinced the authorities to launch an investigation against him as well.

Published in Dawn, February 22nd, 2017