KARACHI, Aug 10: An accountability court indicted on Tuesday Javed Burki, a former federal secretary and former chief of the Pakistan Automobile Corporation, and co-accused Muzzamil Niazi in a Rs1.7 billion corruption case.

Judge Prakash Lal Ambwani of AC-4 ordered the prosecution to produced its witnesses on Aug 18 as Javed Burki and co-accused Muzzamil Niazi, former managing director of the PACO, denied the charges and pleaded "not guilty".

The two accused, both on bail granted by the Sindh High Court, appeared along with their respective attorneys, Abdul Hafeez Lakho and Ms Ismat Mehdi. The prosecution was represented by special public prosecutors Shaukat Hayat and Khalid Mehmood Siddiqui.

The reference against Mr Burki and Mr Niazi was filed by the National Accountability Bureau (NAB) on Dec 20, 2003. According to the reference, the PACO had entered into an agreement with Pakistan Army in 1987 for the production of Yasoob Trucks by utilizing assembly and body fabrication facilities, then technically available in the PACO.

The army placed the order for production of six prototypes of six-ton trucks in 12 months for technical evaluation and experimentation through their use in the field. In July 1989, the PACO delivered to the army seven prototypes of trucks, produced at the Trailer Development Corporation, a subsidy of the PACO.

In May 1991, the army asked the PACO to indigenously produce trucks by utilizing the then existing manufacturing and technical facilities at its production unit.

However, the accused allegedly established new technical facilities for engine, axle and production of trucks at Bin Qasim through three newly-established joint venture companies under the umbrella of Management Partner Ltd. The new joint venture comprised PACO employees and monetary shareholders from the private section.

It was alleged that the PACO suffered huge financial losses, which ultimately brought about its closure in 1997. Besides, the financial investment of the Pakistan Army in the project allegedly went down the drain.