LAHORE, Aug 3: The Punjab government has dropped fraud charges against a former resident director of the Lahore Arts Council (Alhamra), who along with two other employees were held responsible for embezzlement of millions of rupees by the Governor’s Inspection Team last year.

Chaudhry Nazir Ahmad had retired from the government service as provincial archives secretary in BS-21 last year. He had fled the country during the investigation by the inspection team which had started the inquiry on the basis of a special audit report about the affairs of Alhamra.

Interestingly, cases were registered against the other two accused low-grade employees by the Anti-corruption Establishment. Officials claimed one of them was still behind bars and another on a bail granted by a court.

The GIT had held Chaudhry Nazir Ahmad, Accountant Habib Ahmad Khan and Hall Manager Habibur Rahman, the alleged mediator between drama producers and Mr Nazir, responsible for the malpractice, the major being the misappropriation of Rs7.825 million of the hall reservation dues.

Sources said on Sunday the inquiry was conducted by the additional chief secretary under the pensions rules on the recommendation of Alhamra’s parent information department in the absence of Chaudhry Nazir Ahmad.

The additional chief secretary declared that the allegations against Chaudhry Nazir were based on presumptions, the sources said.

They said the charges were finally dropped by the chief minister and now notified by the chief secretary, declaring that the allegations against Chaudhry Nazir were based on audit objections and were not actual embezzlement. These objections could be cleared in case of a formal audit of the arts council.

The allegations were not substantiated by a formal audit report, the government has declared while dropping the charges on compassionate grounds, the sources claimed.