KARACHI: The National Accountability Bureau (NAB) on Friday filed a corruption reference against 10 serving and former officers of the National Insurance Company Limited (NICL) and others in connection with Rs100 million alleged illegal investment made in the First Dawood Investment Bank Limited (FDIBL).

The then chairmen — Abid Javed Akbar and Ayaz Khan Niazi — along with the then executive directors and members of the investment committee of the NICL have been accused of investing Rs100m illegally in the FDIBL in violation of the policy and favouring the private bank, thus causing a loss of Rs67.057m.

Ejaz Ahmed Khan, the former executive director, corporate services of the NICL, who is currently serving as the Karachi commissioner, has also been named in the reference.

The administrative judge of the accountability courts, Karachi, admitted the reference and sent it to an accountability court for trial.

Accused said to have made illegal investment of Rs100m

According to the reference, the Supreme Court took suo motu notice on a complaint filed by Transparency International and ordered an inquiry into affairs of the NICL in 2010.

The investigation revealed that the NICL management made an irregular investment of Rs100m as certificate of investment (COI) with FDIBL on Nov 24, 2008 on the offer to return at the rate of 18.5 per cent per annum for a period of six months.

It alleged that the investment was made in violation of the finance policy, however, the FDIBL failed to return the principal amount of Rs100m on the date of maturity.

The investigation further revealed that the NICL’s in-house investment committee comprising F&A GM Mohammad Zahoor, Investment GM Athar Naqvi (late), CS executive director Ejaz Ahmed Khan and Investment Policy manager Shahab Siddique recommended the investment and this recommendation was unlawfully approved by Abid Javed Akbar, the then chairman and CEO, without seeking approval of the investment committee of the board or board of directors.

It stated that the in-house committee was vested with the power to invest the amount, adding that the FDIBL made an offer for investment on Nov 20, 2008, but the investment was approved a day earlier, on Nov 19, 2008.

The reference stated that during investigation it was established that the 10 NICL officers misused their authority and granted benefit to the FDIBL then chairman, CEO and director, causing a loss of Rs67,056,867 to the government exchequer.

It stated that the accused persons in connivance with each other had committed the offence of corruption and corrupt practices as defined under Section 9(a)(iii), (iv), (vi) and (xii) of the National Accountability Ordina­nce, 1999, punishable under Section 10 of the ordinance and schedule.

Published in Dawn, June 2nd, 2018