LAHORE, May 18: The interior ministry has ordered a fresh inquiry into Rs26 million embezzlement in the Pakistan Mint, rejecting the probe completed by the FIA.

Surprisingly, the ministry has also sought to assign the job to a deputy director level officer of the FIA despite the fact that the first inquiry was conducted by the agency's director, deputy director and assistant director.

Requesting anonymity, a senior official told Dawn on Tuesday that there was no justification for rejecting the inquiry that was submitted to the ministry with complete evidence against the culprits in February this year.

On the orders of the Lahore High Court, the FIA had initiated in 2003 the inquiry into the purchase of copper and nickel on higher rates during 2001-02. The inquiry team held the Pakistan Mint master, works manager and the deputy secretary responsible for causing a loss of over Rs26 million to the public exchequer in connivance with a local supplier company. The agency also recommended action against the company's chief executive for tax evasion.

The official alleged that the company had used influence in starting a fresh probe. "It will take at least six months to complete the inquiry because of the nature of the case," he added.

According to the inquiry report, the Pakistan Mint opened a tender in October 2001 for the supply of 200MT copper and 100MT nickel. Four firms participated in the bid.

The mint master rejected the lowest bid in order to facilitate the supplier company, which had nothing to do with the metal business, get the contract at higher rates after taking Rs5.5 million, the report said.

It said the accused also issued the purchase orders to the company contrary to the quantity quoted in the tender. Besides, the company did not supply the quoted nickel and its security of Rs100 million was not forfeited by the mint master.

The Pakistan Mint, according to the report, did not require the quantity because it already had 718MT copper and 214MT nickel in stock. "The mint master deliberately concealed this fact and did not consult the bullion department, which was supposed to give the procurement advice."

Similarly in July 2001, the official violated the rules and awarded a tender for the supply of 300MT copper to the same company, instead of issuing order to the lowest bidder.

The report said the official was bound to compare the offered prices with the London Market Exchange's, but he did not. The prices of the metal all over the world were based on the LME prices, it said.

Besides, the metal provided by the company was not up to the standard and it was confirmed by the University of Engineering and Technology that the metal was 'oversized.' The lowest bidder filed a case with the Lahore High Court against the mint master and the supplier company.

The LHC observed that no economic measures were adopted by the mint master and ordered the FIA to look into the matter. Meanwhile, the FIA has nominated Deputy Director (corporate crime circle) Javed Husain Shah for inquiry.

When contacted, FIA Director (Lahore) Chaudhry Tanvir Ahmad said the ministry had found some discrepancies in the initial inquiry and it wanted a fresh probe to remove those.